Tough Times Call for Strong Leaders

By Beth Armknecht Miller, President and Executive Coach, Executive Velocity Inc

When working with business owners and leaders, I am constantly reminded of the stress they currently endure in this difficult economy.  Most have had to make tough decisions for the long term health of their company and more importantly, about their employees.

More often than not these complex decisions include the release of good employees as well as cutbacks in salaries, wages and benefits for those people who remain.  These employees are faced with even more work and often less compensation for their increased efforts.

Leaders are well aware of the impact this has on everyone’s morale and productivity.  As a business owner their own personal finances may also be severely impacted by the financial health of their business.  Most feel personally responsible for the employees who they have had to let go as well as those who remain.

Recently, I met with a business owner who shared with me a recent conversation he had with some of his employees.  Although he had not had to release any employees, business had started to slow and he had made some cutbacks in overhead expenses.  As a way of expressing his gratitude for his employees’ contributions, he decided to take some key employees out to lunch.  During lunch the employees shared their observations of him over the last several months.  He was shocked to hear that he had been demonstrating a number of behaviors that lead the employees to believe that he was stressed out.

The positive outcome was that the employees felt comfortable enough to share their concerns with him.  He had obviously created a safe communications environment for his employees.  I then asked him “what message did he get from this conversation?”  His immediate response, “I need to be a better leader!”

We then explored what being a better leader would look like and how he could start to move towards this goal.  He identified the options and resources available to him and committed to some next steps with a specific time line.

This story is just one of many about leaders who are having difficulty handling the stress created by today’s economy.  Many leaders don’t realize how they present themselves to their employees and the impact that their transparent emotions and negative behaviors have on their employees.

The following are some suggestions to maintain a persona of strength with your employees and team members during these extremely challenging times:

1. Take care of yourself.  Exercise, eat well, get 7-8 hours of sleep, and take time for yourself.  These behaviors are important to keep your energy up and your emotions in check.
2. Focus on your business recovery plan and communicate the details of the plan in a positive and encouraging tone.
3. When communicating bad news, again focus on your plan to turn the situation around.
4. Practice important communications with a trusted advisor before communicating the information.
5. Encourage others around you to be part of your plan and their success.  Don’t take it all on yourself!
6. Celebrate your company’s successes!  This doesn’t have to cost money.  Visibly recognize employees who contributed to the company’s success.

Remember your employees and team members take their cues from you.  The behavior you model will be picked up and replicated by the people around you.  Positive cues and behaviors can be contagious and are important to navigate your company through these challenging times.