Leading Through Tough Times and Into Recovery
Leaders emerge to meet the challenges of the time. Certainly these are challenging times. Current economic data indicate that the economy is no longer in free fall and signs of recovery are appearing, but the economy is still fragile. In these times, how should leaders lead? Here are some thoughts to consider.
Stay Close to Customers. Paying rigid attention to cost containment, particularly in difficult times, is an absolute necessity. But, to stay alive and live to fight another day depends on revenue generated by sales to the customer. Leaders need to be face-to-face with their customers to retain customers, gain market share and get timely marketplace input in order to be in the lead as the market begins to turn upward. Leaders must continue to stay focused on the only reason any organization exists, in good times and bad…to serve and retain the customer.
Continue Doing What Got You Here. High performing companies got that way for a reason. It just didn’t happen. Enumerate the significant drivers that produced success and sharply focus on these. Don’t retreat. A leader’s attitude is constantly observed. Leaders cannot afford the luxury of looking inward at their own fears and concerns, they must focus outward and reiterate the organization’s long-term vision, goals and strategy as the way to driving success into an economic upturn, which will happen.
Build a Culture of Engagement. You cannot over communicate in tough times. Be honest and direct. Don’t spin the truth. Give people as much information as is prudent and possible on what is likely to take place, when and why. Value employees and show your compassion but do not accept less from people. Insist on excellence and hold people accountable. Be visible and positive. Have an open door policy. Be with the people. Ask for their input and ideas, don’t just hear them, listen to them and be prepared to take action on their input. Let them know by action, not just words, that “we’re in this together.” Celebrate wins…even small ones.
Manage Talent. Talented performers are the biggest contributing factor in the drive to do more with less. In tough times, costs must be cut and cash conserved. Although downsizing is never easy or pleasant, now is the time to get under performers “off of the bus” and invest in talent. Workforce reductions have an emotional effect on talent that stays. Leaders should never speak negatively about those who leave, it will undermine the leader with those who remain.
Retain Talent. Reward talent through competitive and fair compensation and take advantage of a slow time to develop talent. Talent wants to be developed. Make an investment in talent. Consider such things as added responsibility, stretch assignments like improving work processes and products, cross-functional training and a developmental assessment and/or 360° multi-rater feedback process. Provide coaching based on strengths and developmental areas.
Hire Talent. Now is the time of opportunity. Today, talent is on the street. Invest in talent, such as sales representatives, who can help return to sustained growth. If marginal players are gone, make sure they are replaced by strong talent as the organization grows. Well developed components of your selection system and/or assessments can help with talent acquisition.
A time of economic downturn is a difficult time, but, “In the Middle of Difficulty Lies Opportunity” – Albert Einstein.
