Effective Leadership During A Credit Crunch

EFFECTIVE LEADERSHIP DURING A CREDIT CRUNCH

It is clear that the UK has entered a period of difficult economic times for both consumers and companies. Cash is less accessible, house prices are falling, 57 % of consumers have trimmed their spending (Mintel) and there has been a sharp drop in retail sales. How then do Leaders guide their companies and employees through these times?
In difficult trading conditions companies traditionally look to cut costs as a way of compensating for a projected/real fall in income. Leaders must be aware that there are, at least, three competing areas where needs must be satisfied to ensure a long team future – investors, customers and employees. When times are tough it is Leaders who must keep manage the uncertainty, keep people engaged and drive performance. How you treat your investors, customers and employees now will be remembered well into the future!

Effective Leadership during a credit crunch must involve
- Having a clear and compelling vision ( be focussed on results )
- Being pro-active ( generate energy and enthusiasm )
- Being open and honest ( communicate incessantly )
- Teamwork and trust ( pull together not in different directions )
- Creativity and Innovation ( if customers are focussed on value how do you change your product/strategy )
- Staying true to your values ( or you will permanently lose investors, customers and employees )
- Adopting an AND mindset ( not solely either/or options )
- Communication Mastery ( listen to your people and respond to their concerns in an impactful way )
Leadership is hard work. It is arguably even tougher during difficult times AND it is needed even more!