Council Post: Three Missteps Business Leaders Can Avoid During A Crisis

We’re living through unprecedented times. Even the most experienced, steadfast and savvy business leaders might find it challenging to navigate impact of the coronavirus, which is greatly affecting people, organizations and governments worldwide.

Many factors are out of our control, and there is a chance that business owners and C-suite executives will make certain missteps with how they are salvaging their companies and communicating with employees. As the CEO of a cannabis infusions company, I’ve observed three common missteps that can be avoided by simply thinking a step or two ahead and re-evaluating first-instinct responses. These at least are factors you can control to help prevent damage to your company and better prepare for prevailing in the future.

Hiding Emotion

Depending on your situation, making cuts in the form of laying off or furloughing staff might be necessary to ensure your business survives. Many leaders might be preconditioned, or even advised, to be stoic while delivering this news. But I believe an emotionless approach might do more harm than good.

You’ve probably received valuable advice from your legal team on the best way to present the information, but that doesn’t mean you have to be cold in your execution. Remember that your former employees deserve your respect. Be human, and don’t hesitate to show your disappointment after a round of layoffs. Let people know they are valued and have contributed greatly to your tight-knit company culture and work family.

When it comes to addressing remaining employees, don’t hold back emotion when communicating to them about a round of lay-offs and the reasons behind the cuts. Let them know it was for the greater good of the company to succeed, but don’t fake confidence. In the end, your employees will appreciate your honesty, humility and transparency.

Reacting Slowly And Timidly

To invoke a common metaphor, it is better to just rip off the band-aid. When it comes to making cuts, take decisive action to cope with challenging times, rather than idling and avoiding.

Based on what has happened during major economic downturns throughout history, the wise solution continues to be to make deep cuts to unnecessary spending. The first round of cuts should be the most drastic. Evaluate what is essential, from job roles to equipment, and down to the bare bone. Any time wasted in this process is delaying the inevitable and could be costing you dearly.

Planning For Business As Usual

Uncertain times are not “business as usual,” so don’t plan for the short- or long-term as if they are. The coronavirus has impacted every sector of every industry, and the situation continues to change and evolve. Therefore, leaders must plan meticulously to navigate this rocky terrain.

Businesses should consider the size and legacy of their company when planning for both the short- and long-term. For instance, startups can react quickly to shifting landscapes by pivoting and narrowing their focus on smaller target markets in order to get by. However, many startups often struggle with a lack of access to capital during times of uncertainty, so they will need to conserve cash and prioritize sustainability.

On the opposite end of the spectrum, if you’re running a large legacy company, you might have more leeway to stay the course and weather the storm. Set steps in place to fulfill the complete potential of your production and workforce several months or even a year from now, then reassess depending on how our current circumstances change.

When responding to a crisis, it is important to act quickly, but carefully. Striking that balance will lead to better-informed business decisions and employee management and pave the way for survival and consistent profitability in the future. What I hope business leaders learn through this experience is how to manage with humanity, empathy and a clear understanding of how to be good corporate citizens with the greater public good in mind.