How to Lead During a Recession, Part 2: Your Team leadership
This is a time to stretch your leadership opportunity mindset. We’re continuing our series on how to lead during a recession—and in this article, we’re focusing on how to lead your team. We’ll cover specific questions you can ask your team to help you brainstorm while in a recession and how to coach your team through three recession-induced issues. Our goal is to prepare you now before a recession (or slowcession) arrives so that you’re equipped to lead your team through uncertainty.
Questions to Brainstorm with Your Team
“Now more than ever leaders must be intentionally curious about what a potential recession makes possible for their organization and team. Make it a weekly habit to seek the perspective of team members and customers so that your decisions are informed and thoughtful.”
What is some work that we can get done now that wasn’t possible before? If you’re experiencing a slower season than usual at work, now is your time to get stuff done that you’ve been wanting to do. Have there been any technology solutions or workflow automations you’ve been meaning to test out? Have you taken the time to survey your clients and learn how they’re experiencing your product or service? Or have you gathered feedback but done nothing with it? This is the perfect opportunity for you to give your teammates worthwhile work that will help you move the business forward. A recession-induced business lull can be an opportunity for you to make positive organizational changes, equip your teammates to tackle new projects and modernize your business in ways you hadn’t made time for in the past. Lead your teammates through a slowdown by showing them that there is always welcome opportunity to be found in unwelcome change.
How can we use this slower season to improve operational excellence? Encourage innovation. Do your teammates have any skills that have not been utilized to their fullest potential in their current role? Offer stretch assignments. Connect with other department leaders and see if there are opportunities for cross-departmental projects that could bring together both of your teams to work toward a common organizational goal. Hold brainstorming sessions with your team to learn from them. Create a space where ideas and collaboration are welcome. Don’t shut down any idea. But simply allow momentum and creativity to build and see what comes of the time. Then seize the opportunity to test and try new systems and ways of doing business.
How can we be good stewards of our time and resources? Pay attention to how money is being spent. Just because it was in the budget originally doesn’t mean it needs to be spent if business is slowing down and margins are getting tight. Stewardship isn’t only about money though—it’s about resources and people. Are you stewarding well the talents and time of your teammates? Answer that question for yourself, as a leader, honestly. And then ask your teammates if they feel like they’re being utilized in their role in a way that feels purposeful and inspired, or if something could change to help them feel fully engaged and productive. Use this slower season to have purposeful development conversations with those you lead.
These are just three questions that could spur on new ideas and foster team collaboration. But if you could benefit from more structure, we, at Building Champions, offer group coaching and team workshops that could be a proactive step taken now before the recession arrives. Our team of Executive Coaches and Mentors have helped teams just like yours accelerate learning and fuel connection.
How to Coach Your Team through 3 Recession-Induced Issues
Supply Chain Issues. Foster healthy connections with your suppliers. McKinsey & Company released a report revealing that companies that regularly collaborated with suppliers experienced lower operating costs, higher growth and greater profitability. Even though artificial intelligence is rapidly growing, we still do business with people. And communication is key. You might not always be able to control or even mitigate supply chain issues from impacting your business, but you can do your best to predict issues and communicate timelines. Don’t you respect companies more who are up front and clear with backordered estimates rather than those who allow you to make a purchase only to later inform you that the item is delayed for an unforeseen amount of time? Put yourself in the shoes of your clients and coach your team to remember the human element. Even if your business gets hit by supply chain issues, your brand can remain strong if your clients experience top-notch service and communication during the slowdown.
Customers who no longer have budget for your services. If a recession occurs, you won’t be the only one feeling the impact both at work and at home. Your clients will be walking through the season just as you are. So if your company has the capacity to get creative with your services and products, now is the time. If you’re about to lose a big client because they’re tightening their spending and you know the loss will hurt your company—and you truly believe in what you’re offering them—then try to meet them in the middle for this season. Maybe you can offer them a lower rate or a flexible service that will still allow you to do business together. If they value what you offer them, you have leverage to at least have the conversation. And once we’re out of a recession, they will remember how you worked with them and for them.
Company layoffs. If layoffs hit your organization because of a recession, then you, as a leader, have the privilege to speak identity and truth to your teammates. Getting laid off from work is hard no matter the reason, but if it’s driven by recession-induced budget cuts and not performance issues, you have all the more opportunity to remind your teammates of what you see in them and who you see them becoming. Your tone of voice and delivery with this message will be critical—because emotions can run high and no one wants to feel patronized. But if you can communicate hard news with empathy, care and belief in them, your teammates will walk out the door with confidence and belief in themselves.
Supply chain issues, budget cuts and layoffs are all stressful and difficult realities that can occur during a recession. With your leadership, you might be able to mitigate these issues, but if not, you can at least lead yourself and your team through them. Make sure you’re taking the time to connect with your team now before the recession hits so that you are all prepared to handle the curveballs together as they come.
