Fundamentals of Management, 8th ed

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Part 4: Leading

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TOUGH TIMES, TOUGH CHOICES

Leadership Tips for Tough Times

How does one go about leading in a stagnant econ-

omy with a continued threat of recession? What

adjustments do you have to make when money is

scarce, markets are volatile, and morale needs boost-

ing? Dennis Carey, vice chairman of Korn Ferry Inter-

national, an executive-search firm, suggests that top

managers start by acknowledging that leading in

extreme circumstances means calling into question

everything they do under normal circumstances.

“You can’t rely on a peacetime general to fight a

war,” he reminds fellow executives. “The wartime

CEO prepares for the worst so that his or her com-

pany can take market share away from players who

haven’t.” Hire away your competitors’ best people,

advises Carey, and keep them from grabbing yours.

Or buy up their assets while they can be had at

bargain prices.

Jack Hayhow, consultant and founder of Opus

Training and ReallyEasyHR, adds that leaders need

to make sure their employees know why they’re

making changes. Specifically, Hayhow argues that

managers need to explain why reductions are neces-

sary, that old business models no longer work, and

that everyone must adapt to the changing business

world. He also suggests that managers tell their

employees that if they truly want job security they

should concentrate on finding so many ways to

contribute that the business cannot afford to let

them go.

Hayhow also stresses the importance of creating

an environment in which people motivate them-

selves. How do you create such an environment?

“Start by matching talent with the task,” he says.

“Play to your employees’ strengths. Figure out who

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A key part of effective leadership is communication. This is especially true when an

organization is going through tough times. By sharing information as openly and candidly as

possible, leaders can help maintain the trust of their employees and keep morale from eroding.

(Continued)