How To Lead During A Downturn

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By Coach Gerry

What Does A Leader Do During A Downturn?

The business environment today is spiraling down. Sales in practically all businesses are in the tank. Revenues are off, profits deteriorating, stores and businesses are shutting their doors, only layoffs are trending upward. Budget cuts and the talk of more are just routine.

Employee morale is low, due to not knowing if they have a job tomorrow, but still surprisingly good.

For now.

How can you as manager, or leader, keep things on an even keel while navigating through this economic storm? How can you best provide an anchor for your people who feel threatened and anxious during the chaos?


Its All About Confidence

The first job of any leader is to gain and keep the confidence of his/her followers.

This is especially true when leading through crisis such as layoffs, downsizing, smartsizing or any type of remissioning program. The manager is the one who makes the decisions, announces the cuts, and hands out the pink slip.

At times like these people dread being called to the bosse's office in fear of losing their job. It may seem ridiculous to even think that workers can be confident in their leader at times like these. There is just too much uncertainty.

But working to eliminate uncertainty provides opportunity for confidence in leadership to grow.

What You Can Do

Here are some actions that I have used, as a manager leading through crisis, in the past.

  • Communicate directly for understanding. Yeah, you need to hand hold during this time. The folks need to know everything you can legitimately tell them about the work situation and how they are affected. Ask questions, listen, answer questions, listen. Do this in meetings, one on one, or group .... not through email! Email does not promote understanding, it invites misinterpretation, just the opposite of what you want.
  • Do not make promises you can not keep.
  • Do not make up stuff. If you do not know the answer to something, tell them you don't know. Invest in the truth....it is the only thing that pays.
  • Be accessible as much as you can. Employees will have many questions as they weave through the mix of rumor and fact every day.
  • When the time comes for you to tell someone they are being laid off or fired do it personally. Eye to eye. Do not delegate. Do not email the bad news. This is your responsibility. You owe this confrontation to the employee and to the survivors left behind.

Give them the gift of appreciation as they leave. They have worked for you and your organization and it is ok to thank them for their contributions.

Throughout this process maintain your integrity, courage and conviction that you will handle every situation with respect and caring for each individual.

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