Leading teams through uncertainty

Dr. Markus C. Hasel

Practical themes from Markus Hasel’s original article on crisis leadership, drawing on lessons discussed in the context of the financial crisis and the pandemic.

Why context changes leadership

In order to better understand the reasons for why leaders need to change their behaviors and interactions with their employees, let's first look at what constitutes a crisis. Crises are periods and incidents that often arise without much prior warning leaving little time to react. Most crises create situations in which organizations are suddenly faced with great uncertainty and great risks to their business and even their survival. Crises put enormous pressure on leaders and employees alike. The pure nature of a crisis requires swift decision-making under immense time pressure. The strain a crisis puts on leaders and employees will frequently stretch a company's resources to their limits and beyond.

Which brings us to the particular role of leaders. During a crisis, leaders embody much more than their core leadership function. They are looked toward for explanations, tangible actions, hope, solutions, and stability. Leaders are the stable rock employees can trust in, the safe haven providing a sense of stability and safety. Decades of research have shown that the perception of leaders changes with the context. A team leader, for instance, who is very hands-off during calm times of prosperity may be considered lacking the necessary strength to carry his team through a crisis. Conversely, a leader that is seen as ruthless may suddenly be seen as the right person to steer the organization through a troubling period.

Recognition and useful feedback

Aside from the added financial security that concerned employees may experience, rewards also serve as a form of feedback. A phenomenon that is not exclusive to crises, but indeed more pronounced. This holds particularly true when confronted with uncertainty of the current magnitude.

Regular feedback is a vital element in a leader's toolbox. Regular feedback provides an employee with essential information on their performance. The feedback acts as a benchmark, a stimulus to increase their work contribution where necessary. During a crisis this carries additional value. High performance may shield the individual employee from layoff. Rewards serve a similar function. When viewed within the context of performance feedback, employees are reassured that their contribution is valuable and acknowledged. In turn, this reduces the perceived risk of being made redundant.

Listen before deciding

At any time, understanding one's employees, their needs, listening to their concerns, and showing genuine interest in them as individuals, both on a personal and professional level, is quintessential to successful leadership. During a crisis the need for emotional intelligence is even more profound.

Keep the team connected

This leads us to a related issue: teams. The amount of time we spend with our colleagues often exceeds the time we spend with our families. The role a good team atmosphere, ideally a tight-knit team, plays for employee motivation and performance during this crisis is paramount.

Offer a realistic direction

The latter is essential. The vision not only needs to appeal, it must be realistic, achievable. A vision can only motivate and improve employee morale when its appealing and achievable. It was those leaders in the last crisis that enjoyed a motivated workforce, that reported high levels of team performance where others reported substantial drops.

Build trust over time

Trust is obviously established over an extended period and hoping to build trust in only a few days will yield very little in terms of increased motivation and performance. However, even if strong trust is currently not present, leaders are well advised to work on their relationships with their team members to develop trust. Not only will it serve them well in the current crisis but also when the dust has settled.

Explore leadership coaching and HR performance measurement to discuss how these questions apply to your organization.

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