It’s hard enough to run a business when things are going well. It’s extremely hard to run a company when things are tough. Until recently, we’ve been lucky. The apparent security of our financial systems and seemingly unstoppable fiscal growth having lulled us and the bankers into a false sense of security, even the most badly run and unlikely of businesses were able to survive. In the current economic climate, the companies that survive will, I believe, be those with clear leadership strategies. They will be the organisations that understand how, when times are tough, people look to their leaders for direction and support; those companies that understand leaders need to be valued and trusted by their people if people are to be engaged, focused and productive, ready to batten down during the storm and keep the company in good shape for better times ahead. So, in the midst of change, turmoil and financial insecurity, how do we build this vision of leadership? I’ve devised a 10-point plan to get organisations through the most challenging times.

1. Acknowledge reality
Now is not the time to stick your head in the sand. It would be nice to think that this current recession will be
short and conditions will improve quickly. The reality is it will require sustained effort on the part of companies
if it is to be weathered. If you are in any doubt about your company’s future, don’t deny it. Take a good hard look at your bottom line and assess just how bad the situation is.

2. Share that reality
Your people are only human. In times of uncertainty, they will imagine the worst. The reality though might not be so bad, so be honest and share the facts. If your people have questions you don’t know the answer to, tell them what you do know. This strategy is the opposite of what usually happens. Very often, leaders will refuse to share management information, driving a bigger wedge between themselves and their people, dampening already weakened morale still further. By opening the books you are creating a sense of ownership in colleagues, which enhances their sense of responsibility and loyalty. Building up this kind of trust will be essential if you are to survive in a falling economy.

3. Maintain regular communication with your people
Insist leaders throughout the company — senior management, department heads, mid-level managers, supervisors, team leaders, etc — all increase the amount of regular communication they have with their direct staff. This is crucial for two reasons. First, it discourages the ‘boss vs worker’ mentality, building up a culture where leaders and employees work together. Second, it’s amazing how, when you ask, people have ideas for costcutting measures which those further up the hierarchy haven’t even thought of because they haven’t picked up on an area of waste. Collaborating with your people is good for morale, fuels a sense of trust and always pays long-term dividends.

4. Define a customer-focused vision
Employees want to know that senior leaders have a clear vision for the future even in the best of times. The creation and delivery of a compelling vision is more important than ever now. It is also essential that vision makes the customer the number one priority. Move beyond ‘satisfying’ customer needs and think how you can take service that bit further to create a strategic advantage and drive repeat business.

5. Balance concern for results with a concern for people
Don’t make the mistake of valuing either people or results over the other. The best leaders recognise the importance of striking a balance between these two because both are equally critical when it comes to longterm survival. Creating a motivating working environment for people and taking care of customers is what leads to profits and success.

6. Make responsibilities and accountabilities clear
Too many people in our workplaces today lack clarity about what their job responsibilities and accountabilities actually are, let alone how those
responsibilities contribute to overall organisational success. Everyone should know precisely what their role is within an organisation and what is realistically expected of them. They should also be made aware of their organisation’s key operating values and how they should behave in accordance with those values, because they are a bedrock of stability in a vulnerable, fluid environment.

7. Manage people’s energy
Leadership is all about managing energy and right now it is incumbent on every manager and every leader to manage that energy as efficiently as possible. Otherwise employees are going to spend too much time worrying about what they can’t control and too little focusing on what they can do best within their control. Cheerlead the vision, emphasise where your organisation is going, what it stands for and what it values. Make it clear you have trust in the power of your people to keep this show on the road.

8. Invest in training
Investing in training is a great way to keep people motivated and on track, because it helps neutralise their personal fears and concerns. Companies that continue to invest in their people, re-skilling them where necessary, are not companies that are about to slam the door shut
in their face. Training in self-leadership is a particularly good move; self-leadership creates proactive, confident, responsible, self-reliant individuals who can pick up the ball and run with it for the good of their organisation. It is possibly the best morale and bottom line boosting
initiative any organisation can employ.

9. Accent the positive
Let people know when the good things keep happening. At an individual level, catch people doing things right and make sure good performance is at least acknowledged, if not rewarded. Never expect someone to do a good job simply because that is what they are paid to do. At an organisational level, draw on past experiences to keep a positive vision alive. If you’ve been in business for some time, highlight the last time
business was bad and remind people of the company’s history of success. If yours is a newer company that hasn’t weathered storms before, create a vision of success in which you show commitment to your people, using the potential downturn as an opportunity to pull together and move forward while weaker companies contract and lose market share.

10. Plan for better times ahead
Remember that business has and always will be cyclical. Focus on what can be done now during slow times to ensure your people are ready to get up and go again when the economy improves. Look to reinvent continuously. Ask: how can we work better and faster, with fewer errors, for less? And take a good look at organisational structure, and ask whether it serves your people and your customers, or if they are serving the
structure? If the structure isn’t serving you, your customers and your people, change it.

To summarise: yes, we are going through tough times. But I firmly believe that strong companies, with good people practices, can rise to this challenge. Acting strategically based on the realities faced, investing in and managing your people’s energy, so they remain focused and productive, will greatly increase your organisation’s chances to survive and thrive in the years ahead.

For more from Ken Blanchard on leadership, visit the Personal Development section on www.recruiter.co.uk/personal-development