Seven Strategies to Lead Your Team through the Recession
By Vistage
speaker Ian Cook and leadership development expert Scott Campbell
When your
employees are worried about layoffs, they gossip and commiserate about what
they think is going on in the company. Sadly, this activity tends to
reinforce negativity, pessimism, anxiety and stress, with the ultimate
outcome of poor performance and diminished productivity.
Turning this
trend around requires leadership that keeps employees engaged, focused, and
productive in the midst of turbulent times. Here are seven leadership
responses that increase performance:
1. Pay
attention to the messages you’re sending
During
high-stress times, employees can question your messages and wonder whether
you’re telling them the truth or have a hidden agenda. They closely monitor
your level of confidence and your attitude towards the crisis.
Communicate
to your employees what’s still working, highlight your company’s strengths,
and proclaim your confidence in your people. And remember, your decisions
must be perceived as fair to all. It’s difficult for employees to see
co-workers let go while executives maintain their pay levels and perks. Pain
needs to be shared between all in tough times – and it must be perceived as
shared.
2. Make the
tough decisions quickly but don’t just react
Once you
make a decision, announce and implement it as quickly as possible.
Otherwise, erroneous rumors will spread with lightning speed. Anxiety will
spike, resentment will build, commitment will decline, and trust will
evaporate.
That said,
pressure and worry can prompt us to react without thinking about the
long-term impact of our decisions, particularly when it comes to layoffs.
Reducing head count saves money, but it can be costly in other ways,
including:
·
the loss of
good people,
·
greater
stress from increased workloads,
·
decreased
morale, and
·
lower levels
of service.
Use layoffs
as a last resort. Consider alternative measures such as reduced hours or job
sharing.
3. Focus on
the vision
Pursue your vision even in the midst of adversity with the following
actions:
·
Balance
crisis-driven short-term decisions with long-term, strategic objectives.
·
Be alert to
opportunities that may arise in the midst of the crisis. For example, if
delivering outstanding customer service is a core part of your vision, look
for opportunities to provide extra service to key customers who are also
hurting. This will actually deepen their commitment to your company,
providing you with a powerful competitive advantage in the long-term.
·
Share your
vision with your people. Focus them on the critical things that need to be
done
today.
4. Keep
people informed
Communicating openly, frequently and as candidly as possible is never more
important than during difficult times. Employees
want
and
need
to feel a closer connection than usual to their leaders. People prefer
difficult news to no news. Also:
·
Increase the
visibility and accessibility of your leadership team members.
·
Use email,
company intranets, newsletters, and other means to keep people in the loop.
·
Hold
town-hall type meetings, department meetings, and lunch discussions where
people can ask questions and have their concerns heard. Acknowledge those
concerns.
·
When people
grossly exaggerate the likelihood of a negative outcome, calmly suggest that
that possibility is very remote.
5. Involve
people with today
The busier your people are, the less they will be inclined to dwell on
negative, “what if” thinking. Here are some tips:
·
Recognize
and celebrate small victories and concrete accomplishments. This builds
morale and creates a sense of momentum and progress.
·
Encourage
employees to look for opportunities to do things more efficiently or try
something new.
·
When you
hear someone complaining about something, gently reframe their thinking by
first acknowledging, “Yes, it is frustrating.” Then, focus them on those
things they
can
control or influence by asking, “What can you do about it?”
6.
Demonstrate caring – even when letting people go
In global research conducted by the Towers Perrin group, the number-one
driver of high employee engagement is a sense that the leaders of the
company genuinely care about the well-being of their employees.
(Towers
Perrin White Paper, Managing Amid Market Turmoil: Top Priorities for
Business and HR Leaders.)
When you
must lay employees off, how you treat them is crucial. With a thoughtful and
caring downsizing process, those who remain will respond with increased
commitment to your organization, knowing their colleagues were treated as
fairly as possible.
7. Invest in
your leaders and key players
It’s easy to ignore your best performers during tough times, relying on them
to do their jobs while you focus on managing the crisis.
Due to their
professionalism, your top performers may not complain to you but, rest
assured, they experience the same anxiety and doubts that everyone else
does. Furthermore, if your A-players feel ignored or taken for granted, they
may consider greener pastures elsewhere. Make sure you stay connected to
these individuals, emphasizing the role you see them playing in the future.
Remember to
coach your mid-level managers and supervisors on how to talk to their direct
reports when negativity, resentment and despair arise.
As for your
top leadership team, spend time building cohesion, perhaps in a mini-retreat
type meeting. Encourage them to articulate and address their own fears,
re-affirm their belief in the enterprise, and, together, commit to
successfully bringing the organization through the dark times to a brighter
future ahead.
Taking care
of your leaders and your top talent will give your organization an immediate
and enduring edge over your competition. Tough times do end. That’s the good
news. But until they do, effective leadership is one of the few keys you
have to surviving and ultimately thriving.
These seven
leadership responses offer a roadmap to navigating this tumultuous
environment and arriving at the best possible destination on the other side.
Vistage
speaker Ian Cook works with managers who want to increase their
effectiveness as a leader and build a stronger team. He and Scott Campbell
offer leadership development programs customized for both executives and
mid-level managers.
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