Leadership is especially critical when organizations have to adapt to difficult business environments.

When times are good, leading a company or a team is exciting. Resources are plentiful, customers are satisfied, and opportunity is everywhere. However, when the economic conditions are challenging, this excitement and positive energy can weaken. People feel the pressures of work, and they fear for their jobs.

These worries and fears present a major challenge for leaders who need to keep their teams productive and on target.

One of the keys to protecting yourself and your business in an economic downturn is to develop a culture that builds and sustains effective leadership practices. After all, good leadership is good leadership, regardless of the economic climate.

However, during difficult times, top-notch leadership skills become even more important. Second-rate leaders might be able to keep a company going in a strong economy. However, you need high-performing leaders if you’re going to succeed in tough times.

Of course, you need leaders who can control costs and conserve cash. However, you also need leaders who see opportunity – and who will strive to seize that opportunity – despite all the negativity. You need leaders who remain committed to their people. And you need leaders who can transfer their positive outlook to the people around them.

Commit to Your People
Negative messages are all too common during economic downturns. People are losing their jobs, unemployment rates are going up, and personal and corporate bankruptcies are increasing. This can weaken morale, both in the workplace and in society as a whole, and it can tip people into panic, severely damaging their productivity.

Don’t abandon your people. Use this time to reinforce how important they are, and build the skills they need to help the company survive.

Invest time in leadership skills training –Leadership is the key to success. The more effective leaders you have, the better it is for you, your team, and the organization. OK, you may not want to spend a lot of cash on leadership training. However, when times are slow, you may be able to invest much more time than before in management and leadership development.

Retain your best people –Part of good leadership is keeping costs under control. However, profits are made by people. Don’t cut back on attracting quality people, and make every effort to retain your best team members by treating them with dignity and respect.

Get rid of poor performers –Poor performers use up your time and energy. They frustrate co-workers and damage overall productivity. Now is the time to get rid of these people, because you simply can’t afford to keep them. Some of your other team members may be relieved not to have to “carry” poor performers any longer. And when your staff sees that you use budget cutbacks to benefit the team, they may be less upset than you might expect.

Build a motivating workplace –It’s easy to focus intensely on specific tasks and the bottom line, especially when performance expectations have such significant consequences. However, as a leader, you can’t let that stop you finding ways to motivate your workforce.

Treat people fairly –When you can’t avoid layoffs, give people as much warning as you sensibly can. Talk honestly about what’s happening, and how cutbacks will affect them. And if you’re cutting people, try to cut the volume and scope of the work that you do, so that you don’t overload those who are left.

Provide useful work for which people are recognized –Be careful about reassigning the workloads of people who have been laid off. Take time to determine who is best suited for which tasks, and remember to give lots of informal praise. Match people’s skills and interests with the work you need done.

Foster good relationships at work – If you have to stop the Friday company-sponsored lunch at a restaurant, replace it with a low-cost potluck event. Try to avoid cutting it entirely.

Stay amazing, Be Legendary

Christian