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Life has been a rollercoaster of emotion lately. COVID fears became shortages, and choked-up supply chains became empty supermarket shelves. Then war broke out, and new worries arose around the world. Now, here in the U.S., most people believe we will soon face a recession and more fear to come with it.
On a recent trip to Europe, however, I noticed how much more so a recession is already almost upon them. The conversation is very different there. After Russia announced the indefinite closing of its gas supply to Europe, gas prices soared. The Euro dropped below $0.99 for the first time in 20 years. With sky-high energy prices and an oncoming winter, people in Europe are already living their fears of entering a recession.
To continue forward into uncertain and rapidly changing times, we need leaders who can help their people overcome those fears. Whether it be supply chain disruptions or a looming recession, we must build trust and be willing to be vulnerable: This is how we keep our teams together.
Face Fear Head-on
Some of humanity's greatest achievements have come after taking major risks or undergoing radical transformations and emerging victorious through uncertainty. Each time we face it, we become more adept at managing the process of navigating and coming through it with confidence. To get through the unpleasant feelings of uncertainty, we need to acknowledge and embrace discomfort as a normal part of this learning process. This mentality toward the unknown leaves us more prepared to jump on opportunities that might come out of it.
To face the fear of uncertainty, reframe the situation — for every uncertainty is a possibility. For example, businesses facing supply chain disruptions will undoubtedly be concerned about obtaining the products they need, but instead of fearing the unknown, those same businesses can view this setback as an opportunity to establish a partnership with another supplier. Identify the positive side or the chances of success and shift focus and energy onto that. Prepare for the emergence of new, unexpected risks with organization and routine wherever possible. Focus on values rather than goals and take action toward fulfilling them. Then, rebound from setbacks and keep doing what it takes to sustain the business.
Build Trust Through Transparency
Facing the fear of uncertainty head-on sets a good example for the company, but leaders also need to build trust among their teams to keep people feeling safe despite it. Leaders can generate this trust by fostering a company culture of transparency. When making major decisions, communicate the "why" behind them clearly. By letting people know why changes are happening, they can feel safer as we drive forward into uncertainty.
Building trust requires being transparent about the reality of the situation, even when times get tough. People want to be told the truth. After Hurricane Ian hit the west coast of Florida, the price of produce went up. Wildfires affected the cost of anything growing in California. A head of lettuce suddenly costs double. We feel it in the food service industry as much as at the grocery store. Leaders have to make predictions about where things are headed despite uncertainty: Be upfront with those predictions, even though they may not always be correct. Take responsibility when things go wrong, even if it costs a hit to your credibility. All we can do is continue forward in our decision-making with transparent conversation.
Be Vulnerable
At the root of building trust in all social connections is our ability to be vulnerable. It implies the courage to be ourselves and to face the uncertainty and risk of emotional exposure. When leaders let their people see them as human beings, they end up with closer relationships and happier teams. In studies, employees who recalled an influential boss showed enhanced brain activation in regions related to positive emotion and social connection.
Admit mistakes and share concerns around uncertainties. Be willing to ask questions and listen to what employees say they need to feel supported. Recognize and express appreciation for the values and strengths they bring to the team, and stay open to learning from them and their insights. Forgive mistakes and offer encouragement for growth: Organizations with a culture of forgiveness have demonstrated higher productivity and less voluntary turnover and stayed more resilient during periods of high stress.
All Critical Decisions Come With Uncertainty
For now, we still have variety on the shelves, so a shortage of lettuce today just means broccoli tomorrow, but once we have fewer choices, that fear starts to become more real. When people are unsure about their job security, physical safety or whether or not they will have the money to pay their fundamental bills, it's only natural that they face fear. This is the environment we're in, so all we can do is navigate this reality, but the solution forward will require balance.
There is a yin and yang to every critical decision. Take layoffs: Business owners facing a financial crisis need to stop the bleeding as much as they can, and labor is a major expense. There were times when I had to face layoffs to keep a company afloat. Sometimes there were projects with great potential or that were already adding a lot of value to the company but also a lot of costs, and we just couldn't justify running them anymore. They became the first places where we had to let people go. Everyone hurts when leaders have to send highly capable people who did nothing wrong home without a job. But sometimes, those decisions are necessary to keep a company running.
Uncertainty uproots lives and makes getting through each day more challenging. But as leaders, we need our people focused on carrying out the work needed to sustain the company rather than struggling with fear. With transparent leadership, determination and a willingness to be vulnerable to our changing reality, a company and its people can get through uncertainty a little easier.