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Recession Looming? 10 Tips To Help Leaders Manage What Lies Ahead

by Laura Poisson

For 21 years, ClearRock has been helping leaders navigate the internal and external complexities of business and people. The last three years have been particularly challenging, given the political climate, social justice issues, the pandemic, the mental health crisis, and a recession threatening our economy. If you became a leader in the last 13 years, you haven’t led through a recession before; don’t worry, you are not alone. Having coached hundreds of leaders through turbulent times, we have collected some advice from our expert team to share with you. 

  1. Take a step back: A macro view can be tremendously beneficial when leading through complex and intersectional challenges. What downstream impact do the current economic/world issues have on your industry, employees, and customers? Look at your organization’s strengths, weaknesses, opportunities, and threats as they relate to the potential impact of current events. How can your business flex to meet the needs?
  2. Maximize your talent:  If someone leaves, consider how else you can divide and conquer the work without backfilling with a full-time hire. Reexamine the superpowers on your team. What skills, life experiences, and expertise might your team bring to the table that is of value at this time? How might their experiences be leveraged while offering them new challenges? 
  3. Find ways to reduce costs and increase value: Reevaluate your spending. Look for waste and reoccurring memberships. Keep only what brings high value. Are you providing services/products that people aren’t using? Consolidate travel, toggle sponsorships, look at where you get the most bang for your marketing bucks and let the rest go. 
  4. Leverage your network:  Leaders need good advisors, whether formal or informal. Consider your strengths and where you have less expertise. Think about who in your network can help strategize a practical approach and path through the challenges you are facing. For example, has anyone in your network successfully led through a recession? Reach out to your current network or expand it to identify people you can learn from and share with.
  5. Don’t take shortcuts when it comes to people: When pressure is high and people are on edge, fearful and exhausted, leaders have a responsibility to show up, slow down, and create space for acknowledgment, sharing, and contemplation. When people can breathe and  (re)connect with themselves and others, their ability to overcome challenges and stay focused on delivering exemplary work for the company.
  6. Lead with authenticity: Say what you mean, mean what you say. Leaders must “know who they are” and what they value to lead from a place of authenticity. Do you demonstrate your values in your words and actions? Do you recognize your strengths and development areas? Authentic leaders are not afraid to admit when they don’t know something. They are also not afraid to speak the truth to power/in power when something isn’t right. By leading with authenticity, you will invite others to do the same.
  7. Communicate, communicate, communicate: Communicate early to your team and others what you see as the challenge, the approach, and the ways that near-term expectations may shift. Communicate often to provide encouragement, maintain focus, and modify your approach as needed; communication is not a “one and done.”  Studies have shown that people need to hear things seven times before it sinks in. Use multiple modalities and repetition on essential items. Be transparent, clear, and consistent in your communication. This keeps morale up, and the team focused as time progresses. 
  8. Get serious about DEIB: In today’s world, there is no success in leadership without addressing issues related to diversity, equity, inclusion, and belonging. Continue your learning journey and offer those opportunities to your team. Weave DEIB advancements into your strategic goals. Be intentional and consistent in your efforts. Understand that if you are doing it right, you will “step in it” sometimes. Give grace to yourself and others. Advancements here will give you a competitive advantage in attracting and retaining top talent. 
  9. Recognize that self-care is good for business: Resiliency is strongest when you are your best self. To be at your best as a leader, you must be physically, emotionally, and spiritually well. More sleep, more water, more exercise. Set boundaries around work. Refrain from sending after-hours and weekend emails. Protect your personal time and that of your employees. Give yourself the time and space to disconnect so you can operate on all cylinders.
  10. Keep perspective: Everything is temporary. Success and failure. Do your best, learn from your mistakes, and do what you can to lift others. Assume good intentions, stay curious, and listen. Accept that no one gets it right 100% of the time. You are human, don’t forget.
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