• About
  • Advertise
  • Careers
  • Contact
Monday, March 27, 2023
  • Login
No Result
View All Result
American CEO Club
  • Home
  • The Big Idea
  • Entrepreneurs
  • Finance
  • Growth Strategies
  • Inspiration
  • Leadership
  • Marketing
    • Social Media
  • Technology
  • Starting a Business
  • Home
  • The Big Idea
  • Entrepreneurs
  • Finance
  • Growth Strategies
  • Inspiration
  • Leadership
  • Marketing
    • Social Media
  • Technology
  • Starting a Business
No Result
View All Result
American CEO Club
No Result
View All Result
Home Social Media

How to Effectively Lead Through Uncertain Financial Times

March 17, 2023
in Social Media
Reading Time: 4 mins read
A A
Share on FacebookShare on Twitter


Disclosure: Our goal is to feature products and services that we think you’ll find interesting and useful. If you purchase them, Entrepreneur may get a small share of the revenue from the sale from our commerce partners.

Uncertainty is not unusual in business. In fact, it can be seen as one of the defining features of life as a business leader. Indeed, the combination of domestic issues — from inflation to supply chain disruptions — and global tensions suggests that the level of uncertainty is likely to remain high over the coming years.

According to KPMG’s 2022 CEO Outlook, which speaks to CEOs about their current and future strategies, 86% of these global company leaders anticipate a recession to hit in the next year, and 71% expect the recession to cause a 10% shift in earnings. With uncertainty looking more certain than ever, how can leaders begin to get a grip on future business challenges?

Related: How Startups and Investors Can Thrive in the Current Economic Environment

How is economic uncertainty affecting how leaders plan for 2023?

The first thing affecting leaders right now is the fact that they exist and work within a “poly-crisis,” facing numerous challenges to their profitability and security at once. Operating in crisis mode inevitably affects a leader’s ability to plan ahead and adapt to changes in a business environment.

Many businesses already had to make significant changes to their organizational, operational and financial structures in order to survive. These businesses face extra challenges now while high prices, tightening monetary policy and weak demand persists — with 90% of economists predicting that tempered demand will be a significant drain on business activity.

A knock-on effect of this period of crisis has been an increase in anxiety around work, performance and money among employees. Leaders are not immune from this stress, but the pressure is high to remain calm in order to retain the best employees. And yet, any attempt at stasis is likely to be thwarted when organizational restructuring necessitates layoffs and downsizing.

The implication for business leaders is that they need to be more flexible in adapting their strategies. In fact, even large firms need to think more like smaller startups, which focus on agility to survive and thrive. Alongside lingering anxieties and monetary restrictions, leaders face new obstacles left over from the Great Resignation and Reshuffling. The move to remote-hybrid work environments means that leaders’ usual methods of making decisions are no longer available to them. They need to find much more resilience and adaptability in order to lead through uncertainty.

All of these factors will be especially impactful for startups and smaller businesses. Newer businesses may not have even established a status quo of reliable processes before the pandemic hit; now, they need to raise their baby in a recession.

As leaders try to navigate growing their businesses and retaining their teams, what should they be focusing on in early 2023? Here are three considerations to keep in mind:

1. Reaffirm the purpose of the organization

When leading a startup, a sense of purpose is vital. Leaders may begin by describing how their ideas are going to make a dent in the universe and why they matter in an attempt to instill this into the organization and create a purpose-driven business.

Leaders should ask themselves and their teams: “What do we offer the world that no one else can deliver? What is our reason for being?” Bringing clarity to purpose will strengthen the bonds between teammates and re-center people’s vision on the horizon rather than on the chaos that surrounds them.

According to a recent survey by Deloitte, 43% of surveyed business leaders said their company views organizational purpose exclusively as a marketing and brand play. That’s not the smartest approach, as customers aren’t satisfied when companies speak empty words about purpose. They expect to see action.

Related: 6 Key Tips for Leading Transparently in Economic Uncertainty

2. Build trust by celebrating integrity

Integrity should be the last quality to fall by the wayside when times get tough, but it’s often one of the first. Integrity can be incredibly motivating; it can inspire a team and keeps members focused on what is important.

If leaders make promises they will be unlikely to keep, short-term wins will be overshadowed by long-term damage to trust. Both integrity and transparency should enhance trust in leadership, which is important if the organization is heading into the unknown.

According to Deloitte’s The Future of Trust report (2021), “trustworthy companies outperform non-trustworthy companies by 2.5 times, and 88% of customers who highly trust a brand will buy again from that brand. Furthermore, employees’ trust in their leaders improves job performance, job satisfaction and commitment to the organization and its mission.”

3. Don’t forget the positives

When challenges abound and the world seems chaotic and uncertain, leaders can often get stuck in a negative thinking pattern. This, coupled with the calamity language of news programs and social media, can be devastating for employees’ anxiety levels.

In a 2022 study by the American Psychological Association, 73% of people from the United States who participated in the study reported being overwhelmed by the number of crises happening in the world. Nearly nine out of 10 participants also reported that they felt crises had been occurring in a constant stream.

Leaders will be wise to remember that optimism is still valid and possible. Highlight that times will get better, eventually. Offer some assurance that there is light at the end of the tunnel.

Economic uncertainty, which continues to unfold and evolve, has the potential to derail even the largest and most well-organized companies. For smaller companies and startups, uncertainty can be destructive and formative at the same time. It’s their nemesis and the water they swim in. Leaders need to be able to incorporate uncertainty into their futurecasting to grow despite the obstacles it presents.

Related: How to Prepare Your Business For Economic Downturn

Related Posts

6 Myths About Leadership That May Be Holding You Back

6 Myths About Leadership That May Be Holding You Back

by Staff
March 24, 2023
0

Opinions expressed by Entrepreneur contributors are their own. Leadership is a complex concept that has been the subject of...

How to Establish Yourself as a Thought Leader in Your Industry

How to Establish Yourself as a Thought Leader in Your Industry

by Staff
March 24, 2023
0

Opinions expressed by Entrepreneur contributors are their own. If you want to establish yourself as an industry leader, guest...

7 Ways to Help Your Kids Make Smart Financial Decisions

7 Ways to Help Your Kids Make Smart Financial Decisions

by Staff
March 23, 2023
0

Opinions expressed by Entrepreneur contributors are their own. As a father of five kids (ages 7 to 18) and...

How This Entrepreneur Went Global Without VC Funding

How This Entrepreneur Went Global Without VC Funding

by Staff
March 23, 2023
0

Cate Luzio is the founder and CEO of Luminary, a global professional education and networking platform focused on women...

Why Embracing Chaos is Crucial to Your Success and Longevity

Why Embracing Chaos is Crucial to Your Success and Longevity

by Staff
March 23, 2023
0

Opinions expressed by Entrepreneur contributors are their own. We are living in turbulent times. Natural disasters are becoming more...

Female CEO Shares Her Experience Leading an AI Company

Female CEO Shares Her Experience Leading an AI Company

by Staff
March 22, 2023
0

Opinions expressed by Entrepreneur contributors are their own. Female CEOs and founders may be more common than ever, but...

Next Post
5 Items in Your FDD That Can Make or Break a Real Estate Deal

5 Items in Your FDD That Can Make or Break a Real Estate Deal

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Recommended

What Is a 1099 Form? Everything You Need To Know

What Is a 1099 Form? Everything You Need To Know

3 months ago
The 2 Best Tech Stocks to Buy in 2023 and the 2 Worst

The 2 Best Tech Stocks to Buy in 2023 and the 2 Worst

1 month ago

Popular News

    © 2022 American CEO Club

    No Result
    View All Result
    • Home
    • The Big Idea
    • Entrepreneurs
    • Finance
    • Growth Strategies
    • Inspiration
    • Leadership
    • Marketing
      • Social Media
    • Technology
    • Starting a Business

    © 2021 American CEO Club

    Welcome Back!

    Login to your account below

    Forgotten Password?

    Retrieve your password

    Please enter your username or email address to reset your password.

    Log In