5 Leadership Mistakes to Avoid When Coping with Economic Challenges
The true test of leadership comes not when business is going well, and systems are operating smoothly. Effective leadership matters most in times of uncertainty, economic or otherwise. A leader’s ability to avoid mistakes and/or learn from past errors is critically important for all stakeholders involved.
What are the most common business leaders fall prey to?
1. Trying to Do It All
When things get dicey, some A-type leaders try to assume control over every aspect of business. But as we’ve noted before, successful businesses (as well as those that might be struggling) are “comprised of many moving parts—far too many for a single individual to handle or control themselves.” In times of uncertainty, leaders focus on what’s vital to keep going and leave the details to others.
2. Failing to Invite Input from Others
Business leaders shouldn’t try to cope with tough times on their own. Unfortunately, some frustrated leaders grow less tolerant of criticism and feedback, labeling efforts from others on the team as “obstructive” or “uninformed” about the facts of a situation. This inability to welcome ideas and insights from others only leads to a growing sense of disengagement among employees.
A better method, notes Harvard Business Review, is to “create a deliberate delay between ideas, decisions, and actions.” Establish a process by which others are allowed “(the board, external advisors, peers, or good colleagues) to vet and question your plans” for recovery. This process should be “fast and informal” so you can “spell out what you want to do and test the immediate reaction of someone you trust.”
3. Being Afraid to Fail
No leader wants to fail, but in tough times that possibility is always present. An aversion to failure can inhibit projects or initiatives with the potential to turn business around, for the better.
“The truth is that embracing the ‘fail fast’ mantra is essential,” notes TenHats. Savvy business leaders “understand that setbacks are integral to growth, providing valuable insights for refinement.” For that reason, it’s best to see strategic missteps “as a stepping stone to success” and “critical in navigating the ever-evolving business environment.”
4. Unwillingness to Accept Responsibility
Times get tough, initiatives fail to take hold, even some critical mistakes are made in the attempt to “stay the course.” In such cases, it’s never good for a CEO or business owner to avoid accountability or blame others when things go wrong.
By definition, a leader is the one most responsible for guiding an organization, rightly or wrongly. An unwillingness to accept that responsibility fosters a company culture of evasion, mistrust, and plummeting organizational morale.
5. Resorting to Less Communications Rather Than More
Understandably, a business leader whose company is faltering may be reluctant to go into details about the situation with his or her team. But those team members, left to wonder what’s going on, often fear the worst. And when a leader declines to share information, the effect can be devastating.
Instead, says Altitude Marketing, the wise choice is to continue “standing weekly status updates or daily scrum meetings on Zoom.” This approach “doesn’t eliminate fear” among employees, but armed with up-to-date information, they are better equipped to “focus on the task at hand.”
Uncertainty is about the only sure thing in business these days. Leaders who are flexible, transparent, and decisive are likely to be the most effective in maintaining the business and paving a way for future growth.
Written by Lee Polevoi