In Rough Waters: Being an Effective Leader in Tough Times

CIO — REVENUE IS DOWN. Profits are under pressure. Expenses are being cut. Rumors of layoffs abound. Your company is in trouble! You’re worried about your own job. How can you possibly be an effective leader under these circumstances?

First, understand that you’re not alone. Many companies and their leaders are learning to deal with these stressful times. Be sure to tap into that experience. Second, smooth seas never made a good sailor?difficult times test a leader’s true mettle. View these rough waters as a chance to expand your leadership skills for an environment that may prevail for some time. Here are some guideposts to follow.

Wear Two Hats

Now more than ever it is necessary to wear two hats?your business leader hat and your personal hat. This will enable you to separate yourself and your own concerns from your role as leader. Clearly there will be actions, events and circumstances that will be upsetting to you personally. Discipline yourself to deal with them privately. Publicly showing your distress will spread that anxiety throughout your organization. Your role as leader is to provide a productive environment, as free from stress as possible, even under difficult conditions.

Be Visible

In this environment, confidentiality is difficult to maintain. Rumors will run rampant. Every action, word or look takes on meaning for someone. Interpretations will sometimes border on the bizarre. Yet it is especially vital that you be visible to the whole organization during this time. Maintain a calm exterior and communicate often. Walk the halls, talk to people in their offices, eat lunch in the company dining room. Consider using a "hotline" to respond to frequently asked questions.

Stick to the Facts

Be as honest as you can with your people. Don’t try to hide the business conditions. Tell it to them straight. Let them know about the plans for improving conditions. Employees need the information that will enable them to understand the potential impact on their lives. Without facts, people will speculate scenarios that are generally worse than the actual conditions. The effect on productivity can be devastating.

Know How to Let Go

Cutbacks, downsizing, rightsizing, restructuring. Lots of words are used to try to ease the sting of layoffs. It seems almost inevitable these days that you will be faced with having to implement a plan to reduce the size of your organization. This may be the most difficult action you will have to take. How you execute it will have a big impact not just on those who must leave the organization but also on those who stay. From experience I have culled a few lessons that may be helpful.

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