How to be a Real Leader in Tough Times: Finding Ways to Save More Than Just Jobs

Learning to handle pressure is a key requirement for great leadership, and more important than ever during difficult economic times.  Real leaders will make tough decisions, respond quickly to change, and find opportunities despite all the marketplace doom and gloom around them. They will recognize this period as part of the economic cycle, understand that good times will return, and know that retaining top talent is vital to remain competitive.  Leaders of small businesses who are able to stay mentally tough despite economic conditions and are willing to steer away from safe leadership tactics and step-up to become real leaders are those who will survive, and even thrive, in the long-term.

Below are a few strategies that small-business owners can employ as they aim to keep employees motivated and businesses profitable while navigating the tough economic climate.

Identify, develop, and retain your best people
Leaders who are performing under pressure will know which employees are their best assets and essential to survival. Business owners must support them to manage stress and maintain self-belief in order to ensure their engagement with the company’s goals. These employees will also be critical to growing a business once the recession is over.

Avoid staff lay-offs by focusing on the future when making decisions
Real leaders will continue investing in people when times are tough because that’s precisely when competitors can steal a march and gain advantage. Small-business owners will inevitably be very focused on the short-term, but those who keep planning for the future as well will come out of tough times stronger than others.

Communicate openly and honestly with your people
High performing leaders will disclose something of themselves to their employees. They will be honest about the organization’s challenges and be open to challenge and questions from their teams. A strong and meaningful vision that employees can connect with emotionally will be key to survival strategies.

Create a ‘mentally tough’ environment
Real leaders develop mental toughness by staying in control under stress, maintaining self-belief, and focusing on the things that really matter. Mentally tough leaders will be resilient to the current challenges and create conditions where their employees can thrive under pressure.

Small businesses might feel especially disheartened by the current volatility and anxiety in the business world, as they see their company faced with unfamiliar challenges.  However, small business owners can turn these economic tough times into a period of sustainability and even growth for their companies if they can build their and their employees’ mental toughness.

Use tough times as an opportunity to become better leaders
In tough economic environments, too many leaders focus on the constraints on performance rather than the supports and opportunities available. By focusing on the controllables, real leaders will be able to sustain performance and develop resilient teams around them.

Overall, small-business owners must continue to walk the balance beam. They must ensure that clients are supported, and employees are motivated so that their businesses can survive the current economic challenges.

Graham Jones is Co-founder and Director of Lane4, a performance development consultancy working in the fields of organizational change, leadership development, and executive coaching and a co-author of “Developing Mental Toughness; Gold Medal Strategies for Transforming Your Business Performance”. Lane4 incorporates sports psychology to challenge staid thinking, while positively influencing business mindset leading to increased performance.