Managing During A Crisis
The global economy is in a bit of a flux this year. Inflation is high and, in some countries, prices are changing constantly. Companies and individuals alike are feeling the pinch. There is a nervousness around what these economic conditions mean for companies and employees.
It is inevitable that companies will be faced with questions around to manage the challenges. Business leaders will examine the potential impact on their revenues and profit margins. Employees are similarly nervous about job and financial stability and will look to their employers for a sense of security around the business performance and resilience. Business leaders are therefore faced with the question of how best to manage the situation particularly in terms of their employee expectations while ensuring that a healthy company culture continues to exist.
The answer lies in communication and planning. This recommendation is hardly a simple solution. There is a question of what and when to communicate with employees. Striking the right tone in this regard is a tough one because business leaders need to be able to keep their employees calm and focused but also cannot ignore the impact of the macroeconomic environment on their key performance metrics. Communicating too soon could cause stress. However, communicating too late could cause a loss of confidence.
It is helpful to have a balance between an honest illustration of the state of affairs while instilling a sense of confidence that the company is resilient and the leaders will confidently steer the business through trying times.
Some ideas on how business leaders can go about managing their businesses during an economic crisis:
1. Be honest: Transparency in communication is key. Communicate earnestly and honestly. It is fine for a leader to say they do not know what the future looks like. However, it is important to be clear about the plan to guide the company through the difficult times.
2. Show empathy: There is nothing worse than speaking to someone who shows no interest or care for what one may be going through. Language like: “at least you have a job” is hardly empathetic and could be off-putting. That kind of language does not express an understanding of the financial hardships an individual might be going through.
3. Be humble: Ask for ideas from employees and take these ideas seriously.
4. Be proactive and implement innovative solutions: We learned during the global pandemic that remote working is works in most cases. Going back to remote working, as an example, could help reduce fuel expenses. Being proactive about finding solutions demonstrates care which in turn can engender employees’ sense of corporate citizenship.
5. Lead by example. Leadership sets the tone at the top and this means business leaders should do the very thing they are asking of their employees.
6. Communicate regularly: some messages may need to be heard more than once especially during times like these.
