When people first start leading teams, they often feel uncomfortable with the power they possess. But pretending power dynamics don’t exist does more harm than it helps. When wielded correctly, exceptional managers can use their power and influence to great effect during a recession to help their people persevere and maximize performance. As their leader, if you are intrepid and efficient in the face of uncertainty, your team will follow suit.
At Consilio, we have turned countless companies, from bootstrap startups to Fortune 100s, into recession-resistant businesses with our business coaching and leadership development program. Learn how to navigate complex power dynamics in our blog.
Business Coaching & Leadership Development: How Recession-Resistant Businesses Navigate Power Dynamics
Businesses have an inherent power imbalance because of the hierarchical structure. To prepare for a recession, learning to navigate these power dynamics and bring out the best in your people, business coaching and leadership development will teach you key tactics and strategies for economic uncertainty. Let’s get into some of them.
As the captain of the ship, your people will defer to your decision-making when the future is uncertain and they feel their job security slipping away. Because of this, it’s crucial to understand how to facilitate contributions when navigating power dynamics.
When having discussions and brainstorming sessions, you must know when to contribute and how to encourage others to do so. Recession-resistant businesses understand the importance of stability, but they unilaterally drive innovation.
During a recession, there will be countless opportunities to capitalize on, but recognizing them will require out-of-the-box thinking from everyone. Because of the complex external and internal conditions, make sure you are the last to contribute your opinion.
Instead, you should explicitly ask others to contribute and create a comfortable and positive environment for them to share their thoughts and ideas. In these situations, DiSC assessments go hand in hand with leadership development and business coaching.
With DiSC assessments, you will maximize employee potential by learning the best way to communicate with your team, incentivize them, and bring out the best in them. Ultimately, you want to create a culture of teamwork and collaboration.
Everyone should feel like their input is valued and necessary, your team should be comfortable asking for help and supporting each other, and you should cultivate an environment that encourages experimentation, learning, and innovation.
“Even if you have a great idea or perspective, wait until other members of your team have contributed and provided their perspectives. The truth is that as soon as you speak, because of your position as the leader, other team members will most likely stop speaking and accept what you say as the final word. Always play conductor before contributing. Otherwise, you are wasting the most valuable resource at your disposal: your people.”
– Stacey McKibbin, CEO, Consiliio
Be Deliberate About Actions and Communications
Part of leadership development is understanding the scope of your influence and how to wield it. Because of your position, your words and actions will echo across your team.
People will speak, act, and think the same way you outwardly conduct yourself. Part of successfully navigating power dynamics during a recession as a leader is being incredibly careful about what you say and how you behave.
If you exude an aura of doom and gloom, this can have devastating consequences. Conversely, if you are lackadaisical and lack a sense of urgency, your team will mirror this.
“I cannot stress this enough: every word matters. Even what you consider a throw-away comment that has a negative connotation can send your people into a tailspin. Business coaching can help you learn to manage and regulate your emotions to maintain composure during this time so you are the beacon of hope and fortitude your people need you to be.”
– Stacey McKibbin, CEO, Consilio
Build Trust with Each Individual
Building trust is a crucial component of navigating power dynamics during an economic downturn because this power imbalance is not only impossible to throw overboard and get rid of, but it will be even more pronounced as you take command to weather the storm.
You must establish trust with everyone on your team. Be open and approachable, employ situational management, and use tools like DiSC assessments to understand what motivates each person and how they communicate.
Open, transparent communication is invaluable, especially during a recession because job insecurity breeds anxiety among employees. To create an environment of support and help your team cope with uncertainties and focus on their work, provide regular updates about:
- Your company’s financial situation
- Opportunities to express concerns
- Opportunities to provide feedback
- Opportunities for advancement
A huge way to build trust is by explicitly delegating decision-making, which is the hallmark of great managers. This not only empowers your team, but it minimizes the stress that your people feel when you land on a decision because they were instrumental in making it.
“A recession is not a time to let your ego get in the way. Simple acts like admitting mistakes will go a long way in creating trust and psychological safety. When you are open and vulnerable, it will encourage your people to act the same way, which will create a greater sense of trust, bring your people closer together, and generate a more cohesive, collaborative, and effective team.”
– Stacey McKibbin, CEO, Consilio
Do You Want to Navigate Power Dynamics Like the Most Successful Recession-Resistant Businesses? Our Business Coaching & Leadership Development Can Help!
With a looming recession, do you or your managers need help navigating complex power dynamics so your company can survive and thrive during a recession? This is an ability that all leaders at recession-resistant businesses share.
Schedule a consultation to learn about Consilio’s Business Coaching and leadership development so your company can successfully navigate these dynamics and forge a path ahead, no matter how choppy the waters may seem!