There is usually a period of uncertainty during the months prior to national elections that can cause many individuals, organizations and companies to delay making major decisions until after the votes are counted and more is known about the next administration. After this election, that period of uncertainty is going to last a few more months for most businesses.
Well before the main thrust of this election cycle began, there were some commodities doing well, while others were continuing to falter. Significant changes in supply and demand have been occurring in several sectors, and highly infectious diseases are exaggerating supply issues in more than one sector.
During times of uncertainty such as these, leaders need to take deliberate actions to ensure that the business is responding appropriately to the situation and the needs of their people.
Specific strategies
One of your first strategies during uncertain times is to be more transparent on what you know and what you don’t know. Remember that the way leaders handle these situations can either build trust – or erode it. Transparency, and being trustworthy, are your best tools to build long-term levels of trust with everyone around you.
Take the time to explain some possible scenarios, both positive and negative, how they could affect the operation and how you will respond to those situations. Develop a general strategy and update it as more information is learned and confirmed. Recognize when the facts of the situation have changed and take appropriate actions to respond to those changes.
Focus on the key performance indicators (KPIs) that drive your business. You know from experience that if you stay focused on consistently achieving these six to eight key production and financial numbers, you are doing all you can to produce as profitably as possible under the current set of circumstances.
Review your priorities and strategies. Look at each area of the business and make an effort to reduce costs in each of these areas by 5%. Many businesses refer to this as a “Five Percent Solution Strategy” where they focus on each area one at a time and work as a team to find this level of cost reduction. Some have found that even if they can’t find 5% savings in each area, they find more than that in some areas, and the total amount of savings can achieve this amount or more.
Be sure to focus on the areas where you do have control. This is key. We can have an emotional response to uncertainty and become too focused on the confusion surrounding these events. This causes us to lose focus on what we can control, and the situation is managing us rather than us managing the situation. Make a list of what you can control, focus on taking strategic actions to maximize production and reduce costs in those areas, and avoid worrying over what is outside of your control.
Look for new sources of information. Confirm that your information sources are consistently accurate and have your best interest in mind. Don’t make assumptions that just because they have been accurate in the past, they will automatically know the most crucial, accurate information during this situation.
Rely on your best people to help your employees stay focused on their primary responsibilities and to not get sidetracked by the emotional ups and downs of any situation. They must also maintain a keen focus on what they can control in their own lives. Good leaders use these situations as a teachable moment when they can have a powerful effect on the well-being of their employees. When an employee learns key life lessons as well as business savvy from their boss, the connection between them is enhanced and their loyalty will grow.
Samuel Johnson, English poet and essayist during the 1700s, once said, “People need to be reminded more than they need to be instructed.” Do not underestimate the power of simple advice. People need to know your priorities so they know they are focused on the most important activities.
Remember that your employees are watching you closely, not only in the decisions you make and your approach to solving problems, but also in how you emotionally respond to uncertainty. Do you take these challenges while maintaining a steady emotional state, or do you become unpredictable, irrational or belligerent? Are your responses to questions thoughtful and kindhearted, or do you become difficult to be around?
Many times, simply hearing your positive, encouraging comments can provide a level of transparency, comfort and reassurance that greatly enhances everyone’s ability to move forward in a patient and compassionate manner. Take some time every day to pick up the phone and call a few of your key vendors and associates throughout the industry. It may be just what they need that day. Remember how important the words of a leader can be in difficult situations.
Don’t overlook the needs of your family. They are accustomed to doing extra work during busy seasons, difficult weather patterns that delay field operations and major equipment breakdowns. They’ve learned that this is a part of agriculture. Yet, in uncertain times they may not know what you are thinking, what they can do to be helpful, or how they can take some independent actions to serve the business and its leadership. Spend more time communicating with them than you normally do, and regularly ask them questions about how they are doing.
Consider looking for someone in your area who needs help and finding a way to serve them with whatever resources you have at your disposal. Something that you take for granted every day, such as a piece of equipment, the skill sets of your employees or the amenities of one of your facilities may be just what they need to solve a problem or to help their business and their people overcome a major challenge.
Businesses that go into difficult situations with an attitude focused on meeting challenges, seeking rare opportunities and making sure everyone in the company is shown genuine appreciation will come out of their struggle tougher, more satisfied and with a greater sense of purpose than when the challenge began.
