Layoffs, Price Hikes, Fear of What's Next — Here's How Strong Leaders Steady the Ship Businesses are facing rocky waters and most are feeling insecure and instable. But remembering these six things will help you steer the ship to safety.
By Amy M Chambers Edited by Kara McIntyre
Opinions expressed by Entrepreneur contributors are their own.
These are uncertain and unstable times. Over the last year, organizations of all sizes have experienced layoffs or been adversely affected by rising prices.
Employees at all levels, from entry-level to senior executives, are anxious or unsure about the future and unable to predict how economic and political pressures will impact them. If this sounds familiar, and you're grappling with how to best lead, here are six things to remember.
Related: How to Lead Effectively When Everything Feels Fragile and Nothing Feels Certain
1. It all starts with leadership
Treat your employees well. In times like these, your employees are likely scared or worried. They want to hear from you. Having open dialogue, maintaining communication and investing in them matter now more than ever. Remind people that change isn't a bad thing — it's constant, and it's how we learn and grow. Reassure people that there's always a spot for top performers.
It's also important to recognize that your employees don't just need you. You need them. Empowered, confident and secure employees will help you solve your biggest problems. Involving them in brainstorming and decision-making processes will dramatically help you arrive at better solutions.
Oftentimes, your employees are closer to the pain points and understand the current climate and landscape best. They know and see things that even senior leaders won't. Scheduling both formalized and casual sessions with them to generate ideas keeps them engaged and focused on winning, against all odds. That's what you need right now. So, make leadership a priority.
2. Mindset matters more than ever
Henry Ford said it best: "If you think you can, or think you can't, either way, you're right." This is no time to start doubting or second-guessing yourself or your company. Having an abundance mindset (versus a scarcity mindset) works.
Pain is inevitable, but continuous suffering is optional or a choice. Struggle, adversity, challenge and mistakes are how we evolve. Learn to focus only on what you can control. You can't control external circumstances, but you can control your response. It's times like these that make you stronger, so you can choose to get excited about how these times will transform you and your business. It's the leaders who think this way that will emerge victorious.
3. Revisit your vision, mission and core values daily
In changing times, many businesses panic and give in to knee-jerk reactions. Living in accordance with your company's vision, mission and core values ensures that you don't overcorrect but rather stay the course. Referring back to why you exist, what you do best and how you do it will keep your company (and your employee base) focused on the right things and ensure you won't make long-term decisions based on short-term circumstances.
In times like these, companies can often lose sight of what matters most. Staying grounded in what you do best and who you really are, at heart, prevents the temptation to deviate from the course. In times like these, many businesses fail by radically cutting costs, which affects things like quality and service.
But there's a floor to cost-cutting and there's no ceiling to driving revenue. So, instead of focusing on cutting, find new ways to do business differently that still align with your vision and values. This way, your customers will still recognize you as the same great provider you've always been.
Related: How to Design a Resilient Business That Can Withstand Any Crisis or Disruption
4. Know your customers
Never underestimate the importance of connecting with your customers in these times. Many businesses are facing significant headwinds and have been forced to raise prices as their own cost of doing business has increased. This always puts consumer demand at risk.
Price is only an issue in the absence of value. Anticipating your customers' changing needs, especially in advance, and delivering on those needs ensures that the value exchange you offer will continue, even in the face of rising prices. Staying ahead of your customers' ever-changing needs also gives you key information around when your products must change to accommodate the market demands. As such, customer experience is critical.
In challenging economic times, your clients might do less overall business with you (and your competitors). Often, the deepest relationships with the closest personal bonds are the last to be cut, so work hard to become indispensable. Touch base with your clients more than you normally would. Reward them as much as you can. Focus less on what you're getting and more on what you're giving. As with your employees, establish regular dialogues with your clients. Ask them openly what they need and want. Seek feedback and ask them how they're doing. Businesses that do this will be the last to be removed or forgotten from your customers' wallets.
5. Don't just work in the business — work on the business
It's critical to spend more time than usual strategizing and planning for tomorrow. Schedule quiet, private time to proactively visualize the future. Many leaders only live in the present; the here and now. They reactively spend all their time doing versus spending at least 1-2 hours a week to imagine and dream. You'll get better at doing things by spending time thinking about why and how you do things.
If you don't make time to think ahead, you'll always find yourself in response mode. Pausing to proactively consider the bigger picture is what allows you to cause some of the disruption, instead of simply reacting to the disruption. Committing a few hours a week to this sort of creative process is what allows you to be adaptable, innovative and resourceful.
Related: 8 Ways to Train Your Mind to Succeed During Uncertain Times
6. Partnerships are everything — live and breathe that
Instead of viewing others who play in your space as competitors, look for ways to develop synergies, cooperate and learn from them. It's amazing how the sum of the parts is often greater than the whole. Success is a team activity, not an individual sport.
In nearly every sport or business, winners don't do it alone; they routinely find ways to collaborate and connect. They don't isolate themselves or live on islands. They spend intentional time networking with others in their industries or sectors to share and exchange ideas. You can even involve your vendors in considering new or better ways to improve upon what you've been doing. These sorts of partnerships heighten your chances of success.
Times are tough, but leaders and businesses who are doing these six things dramatically increase their chances of success, especially when they do all six consistently.
