To say we are living in volatile times seems an understatement. In this recession, much advice is available for business leaders, but little of it focuses on leading people in a crisis. Effective leadership strategies are essential to ensure performance and productivity in these critical days.
The economy has caused upheaval in business for well over a year. The news nationally and internationally is enough to make you want to bury your cash in the backyard and grow a big garden on top. Though most people would agree the economy in North Texas has some insulation from the extreme lows in other states, most business owners and executives are still managing with understandable caution. Anxiety and fear among our employees is extremely high.
The volatility of these times calls for different leadership skills than we might expect. Here are a few that are crucial:
1. Honesty and authenticity.
The ability to lead will not come from a given set of facts, a perfect ability to predict future trends or even the company’s future. Leadership is defined by the ability to facilitate vision and communication across the organization. Level with employees and stakeholders about how you see the world. Explain the limits to your understanding with humility. Ask for others’ points of view and then really listen to their answers. Craft a more complete view of your company using ideas from your brightest talent. Honest communication takes courage, but it also helps create a real picture and it inspires action and ownership of solutions.
2. Day-to-day operational presence.
Our management styles must now be intense, every day, and hands-on. This is not to say that we are less strategic and big picture, but in addition, we must be visible and communicating daily. Don’t confuse this with micro-management. Great leaders in this time are asking questions and finding answers at all levels of the organization. Focus less on annual or quarterly reports. These are too long-term and out of touch. To see trends more quickly, we must find new sources of real-time intelligence – customers, line employees, peers in the industry, and the list goes on.
3. Optimistic realism.
Unbridled pessimism is no more realistic than “Pollyanna” optimism. We must face the brutal facts and accurately describe the problems we face. At the same time we must be optimistic, acknowledging that almost every problem is solvable. This reduces employee anxiety, helps to unleash our best creativity and puts us to work proactively to make a difference. We want to touch this aspect of our human nature. Demonstrate flexibility, courage and urgency by the way decisions are made and communicated. While others are reacting to the crisis, optimistic realists are proactively describing and acting on solutions.
4. Smart people decisions.
Most of us are making difficult decisions about the people who stay and those we release. We must face the reality of employee performance and contribution with clarity. This is no time for misplaced loyalty or political decisions. We must evaluate individual contribution accurately in order to keep our change agents and key performers. There may even be opportunities to hire a key contributor who is now available. These choices must be done carefully. None of us can afford keeping or hiring a liability.
5. Future watch.
We know the economy will recover; it is a just a matter of when. How we invest in innovation, strategic acquisitions, new customers, new products and efficiencies will make all the difference. Opportunities abound in a down economy. It is in this slowed economy that we can build capacity and position the company to be ready for the recovery. There will definitely be some game-changing opportunities for those who are ready to act decisively.
Concentrate on these leadership qualities and your company will emerge stronger and healthier than before the downturn.
Dr. Mark Cook has been involved in training and business administration for 30 years. He is working with Jim Cross in the CrossGroup. Together, they serve clients using customized training solutions and management consultations, including employee hiring systems. Contact him at mark.cook@crossgroupinc.com
Originally published by the Fort Worth Business Press
