Our Do’s and Dont’s for Leading Through Turbulent Markets

Economic uncertainty is the new constant, and leading through turbulent markets can feel like a never-ending challenge. The great thing is that change is the only constant that we are guaranteed - so it’s safe to say that if you’re experiencing present hardship, there will be good things just around the corner. 

Leading in a turbulent market comes with a set of challenges, and for first-time leaders, trying to maintain morale and performance during this year's hardships has been particularly difficult.

Leading through turbulent markets: Dos and Don'ts:

DO: Communicate clearly at all levels

Communication is key, but turbulent markets can cause leaders to withhold information through fear of how it’s going to be received. The reality is, that having a mindset that causes you to bury your head in the sand will cause issues through all layers of an organisation. 

Just because you aren’t talking about difficulties, doesn’t guarantee that others will be so discreet. Dishonesty and avoiding difficult conversations will cause more harm than good through economic troubles. 

It’s also important to note that economic troubles are always going to happen. So, if you’re a first-time leader struggling to navigate this time, just know that this will equip you and make you stronger for future difficulties in your career.

TIP: Understand the difference between one-way and two-way communication in turbulent times:

“​​As a leader, it is crucial to understand the importance of both one-way and two-way communication. Sometimes, you will have to communicate to your team decisions that have already been made and directives that must be followed.​​ Regardless of the situation, allowing your team members to voice their disagreements about decisions is key—because understanding their concerns is important. However, framing your communication clearly and addressing any concerns before they are presented can lead to faster acceptance.” - [Forbes]

DO: Be transparent about redundancies 

Economic uncertainty doesn’t always equal redundancies, but more often than not, cuts must be made for organisations to survive. If you know that redundancies are going to happen, it’s important to communicate and also alleviate any concerns or assumptions that will be made during this time. 

When given minimal or vague information, it can be easy for employees to catastrophise and create a narrative that could be damaging.

DO: Keep morale high, but realistic

Morale will be low during difficult times - this is obvious, and it’s a fact. However, it doesn’t need to be this way. Economic uncertainty (and difficult times overall) can often bring us closer together. Keeping morale positive, high, and realistic is crucial to ensure employees are still happy at work. 

Happy and energised employees naturally perform better and worry less, and you want to ensure that there is positivity among teams so they can come together and produce incredible work. Equally, it’s also important to recognise that if a team is performing poorly - toxic positivity can be their downfall. Make sure that you address any pressing issues first before preaching “good vibes” in the office.

DON’T: Assume

Assuming your team's wants and needs during a difficult economic period can be considered leadership suicide. During hardship, the way our brains think and operate is completely different to how we would think if we were in a good place at work. Even seasoned leaders who claim to “know the team inside and out” should ensure that there are regular checkpoints with team members to assess how they’re feeling. 

Depending on what team you run, economic hardship can have a bigger effect on some than others. For example, sales teams or frontline customer-facing teams will have a different experience of economic difficulties because of how their job is structured. It means that bonuses could be scrapped, commission could be lost, or dealing with stressed customers can have a direct impact on their well-being. 

This can also be magnified if their partner or spouse is dealing with the same problems. Don’t assume that your team is OK simply because they don’t fall into this category - check-in, take notice, and take action.

DON’T: Underestimate the power of collaborative problem-solving

Executives can often adopt an approach during times of crisis that can cause isolation rather than collaboration. Turbulent markets affect us all, and assuming that a small group of individuals can lead (or even worse, the onus falling on one or two senior leaders) can cause even more problems. Never underestimate the power of collaborative problem-solving. 

Not only does it enable the concern to be shared and dissected by many great minds, but it also raises awareness throughout the business so everybody can impact positive change. Ignorance can sometimes be bliss, however, ignorance by too many can cause businesses to fall behind as they weren’t aware of problems to begin with.

Conclusion

Economic ups and downs are inevitable, and the last 20 years of economic changes have shown us how adaptable you must be to truly grow with change. Some changes can be seen as great, whereas other changes can be forced due to circumstance - leaving a bad taste in people’s mouths. Ultimately, it’s your outlook, work ethic, and mindset toward change that will have the biggest impact. 

Leading through an economic downturn is never going to feel like a walk in the park, but any seasoned leader will know that calm will come after the storm, and the best is yet to come.