The market waits for no one—ask your fellow executives and CEOs, and they’ll tell you that if they could ask the economy to take a breather and let everyone catch up, they would.
As an executive leadership coach, I’ve had the chance to work with plenty of leaders during turbulent times—and I’ve learned which thrive and which barely survive. History is an excellent teacher, and many of the difficulties and challenges leaders face today aren’t all that new.
So, what does it take to lead in uncertain economic times? And how can tried-and-true leadership tactics evolve to meet the challenges of the modern market?
Getting A Lay Of The Land
To effectively lead, we must first understand the terrain we’re navigating. Like a ship’s captain, you need to get an idea of where you are heading and what obstacles you may face long before you embark on your journey.
We’re In A Season Of Hiring Fluctuations
It’s been a bit of a hiring rollercoaster. Executive hiring declined by 20.5% in 2020 due to the pandemic. But the rebound was quick—and 69% of company execs reported decisions to expand their headcounts in 2022 to keep up with new market growth.
Whiplash comes quickly—and 2023 brought another shift, with 29% of companies slowing hiring plans and 26% implementing hiring freezes. August 2024 saw a 193% increase in announced job cuts compared to the previous month, with the tech sector particularly affected.
Skill Shortages Continue To Drive Hiring
A study of executives and boards found that 93% said hiring the right hard and soft skills was at the top of their list of concerns. Fewer individuals come to the table with the skills necessary to push the needle and those who do often hold the cards in the hiring conversation.
Role Priorities Are Evolving
We’ve seen increased demand for roles like Chief Information Security Officers (CISOs), Chief Legal Officers (CLOs), and Chief Financial Officers (CFOs), reflecting shifting business priorities.
But it’s not just the title changing—it’s how these individuals work. Fractional executives, or those working part-time as consultants, are becoming popular for companies looking to fill these positions.
Strategies For Effective Leadership In Uncertain Times
It’s a complex time to lead, but that doesn’t mean it’s impossible. When I work with executives looking to hone their leadership for the modern market, here are some of my top pieces of advice:
1. Embrace Agility And Adaptability
When change is the only constant, agility reigns. As a leader, you need to be ready to adapt and pivot on short notice, implement change fast and be willing to seek the best for your teams without compromising on your mission. This can take a few forms:
• Implementing flexible work arrangements (e.g, remote work, flexible schedules) to accommodate different needs and situations
• Encouraging cross-functional collaboration and breaking down silos within your organization
• Embracing new technologies and tools to improve efficiency and productivity
Leaders willing to be open to new ideas are seen as worthy of loyalty and respect by their teams—so don’t forget this responsibility.
2. Prioritize Clear, Empathetic Communication
You aren’t the only one feeling the strain of economic uncertainty. You can bet that your people are feeling it and looking to you to create a sense of stability and direction.
Whether through virtual town halls, team meetings or one-on-one check-ins, make sure to communicate regularly with your team about the state of the company and any changes that may be happening.
This doesn’t mean sugarcoating the challenges that may be coming. Instead, approach them with honesty and transparency while also showing empathy for your team members’ situations.
Remember, 87% of executives lost a top candidate to another company in the past year—retaining talent through open communication is key.
3. Renew Your Focus On Financial Stewardship
We’ve seen an incredible rise in demand for CFOs. In 2023 alone, there was a 46% increase in demand for interim CFOs—making it clear that financial stewardship is at the top of businesses’ priorities during this time of uncertainty.
You’re still a leader making financial decisions even if you aren’t in finance. So take the time to get back into the books and ensure you know exactly where things stand and where they may be headed.
4. Lead With Vision And Purpose
A proverb says, “Without vision, the people perish.” While you may not be at risk of your teams perishing, failure to develop and lead with a clear strategy can lead to your most valuable assets walking away to find greener pastures.
Lasting leaders can curate and commit to a vision and purpose within themselves and their roles—one that acts as a sail that can be adjusted to navigate any unexpected winds.
5. Stay Aware And Anticipate Changes
Technology is changing things quickly. This isn’t a new idea, but the impacts can be sudden and shatter even the shiniest veneer of stability. Think of the 6,000 job cuts attributed to AI adoption in the tech industry as of August 2024.
Great things lie ahead in the world of automation—with new jobs and opportunities to come—but this means little to those whose livelihoods are suddenly cut short.
Monitor your industry and be ready to adapt as needed. Don’t get too comfortable with one strategy because disruptions and advancements will always occur, requiring a shift in strategy.
The Best Leaders Turn Uncertainty Into Opportunity
While economic uncertainty and market shifts present significant challenges, they also offer opportunities for visionary leaders to shine.
Remember, the most successful leaders don’t just react to change—they anticipate and shape it. Adopting these strategies can help you lead your team and organization to success, regardless of the economic climate.
