What on earth should business leaders do in a recession? What should managers and executives do in THIS recession?
One by one, countries are succumbing to recession as a result of the global credit crunch. Every day, more companies announce thousands of redundancies, the cancellation of annual bonuses, and issue profit warnings. So I'll say it again: what on earth should business leaders do in these circumstances?
At the moment you might think it's hard to remain upbeat, to motivate your staff, or to look more than a few months into the future. But nothing has fundamentally changed about what makes a good leader. The same solid leadership principles still apply. And if you tackle each of them one at a time, you will survive. In fact, you'll thrive and your success will accelerate faster than ever before.
Why? Well, you will have gained valuable leadership experience, and you'll be well placed to benefit when the hard times are finally over.
There's little point in trying to be the next Gandhi or Mother Teresa - these extraordinary people can inspire us, but are very hard to copy in real life. Instead, it's better to concentrate on the things you do wrong and try to put them right. And these leadership failings are still failings, no matter what the state of the economy.
One of the worst failings is Killing Enthusiasm. We're all suffering from dented enthusiasm at the moment, to say the least - one look at the newspapers with their roll call of failing companies and declining share prices can cloud even the most optimistic person's outlook.
But the most serious destroyer of enthusiasm is interference. Yes, the economic outlook is poor, but your staff are just as skilled, just as talented as they were before the downturn. Don't start micro-managing them. Trust them to get on with their jobs, and you'll find it's easy to rekindle their enthusiasm when the time comes.
Another serious failing of Really Useless Leaders is Killing Emotion. Perhaps this is an easier failing to understand in grim times. You're less likely to tell people not to worry or accuse them of unnecessary anxiety when you can see the same worried, anxious looks on faces all around you.
Your goal is to create a happy, productive workplace. Well OK, that might seem out of reach at the moment, but there are many things you can do to help. The first is to reassure people that you're not going to punish them, even in the current climate. Fear of failure is one of the most stifling emotions we can feel, so if your staff know they have your support (within reason, of course), they are more likely to help you weather the present conditions and keep the spark of innovation alive for when you can take advantage of it.
Secondly, recognize your own mood, because your mood affects that of the people around you. You shouldn't become tight-lipped, or refuse to discuss what's happening to your company. You need to share your emotions, and help people to find the light at the end of the tunnel. Inspirational leaders manage emotion in the workplace: they build a workplace where emotions are not buried but are tapped, where people are willing and able to invest their best effort.
Another failing, equally as serious as Killing Emotion in these tough times, is Killing Explanation. We have already touched on this one - keeping people in the dark at this particular time will only scare them and damage your company. Keep them informed, let them know how your company is faring and how they can help it survive. If you do this, if you help people to share in your vision for the future, then you'll prove yourself a worthy leader in tough times. And you, your staff and your business will be ready and waiting when the economy turns once more.
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417
Date Published :
Dec 13 2008