Leading in Uncertain Times
by Bonni Carson DiMatteo, CMC

"All of the great leaders have had one characteristic in common: it was the willingness to confront unequivocally the major anxiety of their people in their time. This, and not much else, is the essence of leadership." - John Kenneth Galbraith

Your staff can be as mercurial or negative as the Dow if they are faced with threat or uncertainty. The current economic times are having their impact on revenue, morale and stock price. Call it the Dow Jones Flu. As a leader you have to inoculate your staff against the deleterious effect of this economic crisis.

USA Today Magazine (May 2008) noted that the increase in employees wasting time is up 44% from 25%. The biggest reason they quote is due to "recession rumination." This is six months later.

Prolonged anxiety and negativity impact the parts of the brain that control executive decision making, impulsivity and malaise. Leaders who are silent or retreat to closed-door meetings only raise the anxiety of staff. As the leader you have a choice: you can address the anxiety and uncertainty or you can avoid it. Either way your staff will interpret the impact, not the intention. Their interpretation becomes the blog of the company morale.

3 Mistakes Leaders Make in Uncertain Times

1. Silence is the stealth killer of morale. It fans imagination - usually in the negative direction. Silence is not golden, it is toxic. Negative energy and expectations distract from daily productivity and quality control. That mindset does not contribute to a staff's ability to positively impact profits or productivity. It fuels chronic disengagement.
        "What does it matter?" can become the staff mindset.
        Instead: Encourage productive discussions.
   
   
2. Denial fans doubt and distrust. Behaving and communicating as if nothing had changed is thinly veiled bravado. That increases anxiety that no one is steering the ship. That translates to complacency on the floor and a lack of commitment to quality.
        "What are they thinking?" becomes the mindset.
        Instead: Keep everyone focused and productive. Be honest, straight forward and encouraging.
   
   
3. "Catastrophizing" : Focusing only on the gravity and fears creates panic in the troops and a conviction that the company is not going to survive. That translates to complacency on the floor and a lack of commitment to quality.
        "I better start looking for a job elsewhere" is the mindset.
        Instead: Discuss the opportunities as well as the challenges.

When communication becomes obfuscated with fear and doubt, it sends a message loud and clear. Uncertainty pervades the shop floor and the lab as well as the water coolers. In no time, the Dow Jones Flu inculcates itself into your culture. That culture won't bring companies or staffs out of this malaise; it will extend the long-term side effects of the flu.

As a leader you have to lead the charge in mitigating these mistakes so that you can focus on improving productivity and morale so necessary for you to point your company in the right direction to weather this storm.

The Challenge for Every Leader is to:

1. Be clear in your communication.
2. Set the tone for "united we stand." Deliver hope and certainty that we can weather the storm.
3. Focus on growth and resilience. No one ever survived simply by cutting costs.
4. Acknowledge that there may be a time to tighten belts and double efforts.
5. Set the clarion call by specifically describing your plan. Include what they will need to do, why they need to do it; how they might accomplish it and when it will need to be done.
6. Solicit suggestions for increasing productivity, profits.
7. Stay positive.
8. Set S.M.A.R.T. goals.
9. If there are lay offs or terminations during this time manage the communication adroitly. Explain why, what, who and when.
10. Help them to focus on what is within their control.
11. Build in some stress relief with some pot luck lunches or ping pong.
12. Listen.