Leaders are made during turbulent times.
As we confront the current economic storm it is tempting to lay low and wait for ill winds to pass. At the end of this tempest – in 6 months or 6 years depending on whom you listen to – some organizations will emerge on top, more nimble and stronger than ever before. Their secret? Making strategic, high-impact investments early enough despite an overall constriction of resources.
BlessingWhite has been around since 1973. We have helped many firms navigate the choppy waters of past recessions. And we have learned a thing or two along the way.
Help senior leaders communicate.
Your leaders may need to communicate bad news – downsizing, belt-tightening, missed targets – while instilling hope and a clear vision of better days to come. Or your leaders may face the equally daunting task of keeping the ship – and the crew – steady through uncertainty while everyone on board - or anybody watching - is waiting for the bad news to hit.
Your leaders probably know how to steer your organization forward, but their technical competence isn't enough. They need to be a visible presence at the helm: to show who they are as leaders, communicating with employees, shareholders and customers in a way that demonstrates their trustworthiness.
Leaders who communicate authentically earn the emotional and rational commitment of your workforce, customers, and other stakeholders. Storms aren't the time for slick communications or spin.
Acknowledge and support leadership teams.
The stress of this economic climate can cause even the strongest leadership teams to falter. Weak leadership teams that appeared coherent in calmer seas are now exposed to reveal their dysfunction.
Do your leadership teams function effectively? Or do unspoken issues threaten to undermine their performance – and consequently the success of your entire organization?
Healthy leadership teams embody trust, apply an agreed-to decision-making process, and share a vision of and commitment to the organization's future. They hold each other accountable to the highest standards of behavior. Shoring up leadership teams is a minimal investment in uncertain times – an insurance policy that can pay off very quickly.
Keep the crew engaged.
It may be reassuring to think that crewmembers aren't going to jump ship into stormy waters. Unfortunately, many employees batten down the hatches. They plan to wait things out, stop taking initiative or become unfocused. So retention may increase while engagement and productivity suffer.
Keeping all hands on deck is one of the toughest challenges of an economic downturn. The bad news – so instantly accessible by the minute online – saps the common psyche. And yet now more than ever you need the full commitment of every crew member to focus on the activities that will carry you through. Your organization needs the entire workforce rowing in the same direction with efficiency and resolve, in step with your organization's current priorities.
While most organizations will not be able to parry the sharp cutlass of budget cutbacks, focusing the remaining resources on these three core initiatives will help weather the storm.
Further reading: Uncertainty's Antidote: Three Leadership Imperatives