The first priority of a leader is to ensure the welfare of their staff. This is true at all times, but especially so during a crisis. A leader must ensure that their teammates are healthy and have the tools they need to be effective during the crisis.
During a crisis, a leader must do everything necessary to ensure the business survives. Decisions must be thoughtful and deliberate. A change leader must make decisions based on the incomplete data that are available with some questions being unanswered — and maybe unanswerable at the moment. Strategies that worked well in the past may require new consideration. When change occurs in the magnitude that we are experiencing, having thoughtful, appropriate responses will have a greater impact than a series of fear-based reactions.
Three aspects of leadership are paramount in a crisis: clear direction, frequent information sharing, and empathy. With clear direction, teammates and their leaders will have the needed confidence to fuel a recovery. Announcements, updates, and ongoing changes must be communicated with enough frequency to generate a sense of safety. If there were ever a time for transparency, it is during a crisis.
The trustworthiness of leaders is developed and communicated with demonstrated empathy. Anyone who manages someone else must pay close attention to each person they manage. Being mindful of changes in demeanor, behavior, or communication can show empathy and help avert troubling reactions to changes. Noticing changes in behavior provides a basis for encouraging teammates to seek mental health support if they are feeling out of sorts. Zooming, Skyping, Teaming around the clock is not healthy, nor is it sustainable. Your teammates must know that it is okay to include self-care in their daily work schedule, including midday exercise and dedicated lunch breaks.
Our industrial psychologist and other mental health professionals have informed us to expect an increase in depression during this pandemic. A buddy should be asked to look in on a teammate (virtually now) to make sure they are okay. If a leader is committed to their business family, they must act the part. This should be driven out of compassion and empathy for a fellow human. Compassion sends a message of caring, and it makes good business sense. Small businesses cannot afford to lose the full participation of each person. If leaders do what they should do, teammates will be able to do what they need to do for their clients.
Even during this unprecedented time, there is no excuse for standards of excellence to slip. It will not be easy, but if a business is to survive, and perhaps emerge from this crisis stronger, the client focus must not wane. Clients, the reason we exist, must be kept well informed along the way to recovery. Communications to the client must be individually hand-tailored so each organization has the information they need to make informed decisions. Our clients depend on us to fulfill our fiduciary responsibilities to them and, ultimately, to their beneficiaries. In spite of the crisis, and more so because of it, that commitment must be even stronger to maintain a trusting relationship.
Mike Tyson said, “Everybody has a plan until they get hit…”Whatever plans a business had BC (Before COVID-19), it will require some modification. Stakeholders must know if the strategy will shift so no one is surprised by unexpected changes. Assemble focused meetings on what needs to change so that businesses can continue and ultimately thrive. Tactical moves will no doubt change, even if the strategy remains the same. It might be necessary to take a different path to the same destination and be prepared for a longer journey. To that end, a leader must do everything possible to ensure there is sufficient capital to see the organization through this tumultuous period. If cost-cutting is necessary and involves a headcount reduction, it is critically important that it be done in the most compassionate way possible.
As we hunker down to weather this storm, it is more important than ever that we keep the lines of communications open and clear. Leaders must be ever vigilant to rally members of their organization to stay focused on the business goals and the human impact of decisions. Although we must do everything possible for the organization to survive, we must remember that smart change begins with taking care of our people — always — but especially so amidst great uncertainty.
André Rice is President of Muller & Monroe Asset Management, LLC.