Strategies for Leaders to Maintain Stability, Inspire Teams, and Drive Growth in an Unpredictable Economic Landscape
Leading in the current Australian economy feels very strange. At the last meeting of the RBA interest rates were kept on hold at a 12-year high of 4.35% with Governor, Michele Bullock, saying they are not ruling anything in or out of policy. Just last week she used an appearance before the House of Representatives’ economics committee to dampen hopes of an an imminent rate cut.
According to ASIC, there was a 36.2% increase in business insolvencies from July 2023- March 2024. Meanwhile, unemployment figures released only last week remain at historic low levels, rising only 0.1% to 4.2%. The record participation numbers and the near-record high employment-to-population ratio mean the job market continues to be buoyant but patchy, despite challenging economic indicators.
As business leaders, we are facing nuanced challenges. Off the back of the global pandemic, we now face international geopolitical tensions, supply chain disruptions, rapid technological change, sector-specific challenges and talent shortages that have all contributed to a complex and often unpredictable economic environment. In this landscape, the role of leadership has never been more crucial. We must adapt, inspire, and guide our teams through this environment to optimise our performance.
Bridge the Strategy-People Disconnect
One way is to bridge the strategy-people disconnect. In my keynote on this topic, I ask people to consider their organisational “Why?”. Going beyond purpose, this links to where you are now and where you want to be. I use the English Premier League (EPL) as the analogy. Are you a Manchester City - have you won a record four titles in a row and are you looking to defend your position? Or are you an up-and-comer who has just been promoted to the EPL, desperate to prove yourself?
As a leader, your role is to have a clear vision of where you are, and where you are heading. You need to understand the strategy to get there and align your team’s individual needs, goals, and motivations with that strategy. During the business cycle, it's essential to continually review and refine your approach, ensuring the team stays on course. You must assess whether you're on the right track, if minor adjustments are needed, or if you’ve veered off course completely and need to step up to realign and chart a new direction. In today's climate, in particular, adaptive leadership is crucial.
Clear, Concise Communication
Poor communication has a significant effect in the workplace. It negatively impacts trust in leadership, productivity, job satisfaction, and stress levels. When we are under more stress as leaders it can be harder to communicate well. Yet this is when we have to step up. Put frameworks in place for your communication if you haven’t already done so, or consider seeking external advice and support.
A good example of how to communicate well, particularly during uncertain times, is found in Satya Nadella, CEO of Microsoft. He emphasises the importance of clear, concise communication, simplifying complex ideas, and making messages relevant to the audience. He talks of the importance of empathy and listening which encourages two-way conversations. This is a framework that can be designed to help leaders articulate their vision with clarity, ensuring alignment across teams. By creating a culture of transparency and encouraging dialogue, you are more likely to inspire action and create a culture of openness and trust in your organisation.
Build Resilience
Leadership is tough at the best of times, and it's tougher in uncertain times. Even trying to accurately pick whether you need a minor course correction, or whether you have veered off course entirely can be unnerving. This week I have been doing some prep work on a keynote I’m doing for RUOK Day on growth mindset and it had me thinking about the importance of building resilience.
There is a link between a growth mindset and intrinsic motivation. A growth mindset is all about how we deal with challenges and mistakes as well as the effort we put in. It is intertwined with our grit and resilience. I’ve written before on some of the techniques you can use to adopt a growth mindset. Sometimes as leaders, we are so busy looking after everyone else we forget to look after ourselves. Remember - we have to put our own health and wellbeing first because we cannot look after others unless we are at our best.
In Conclusion
Leading Through Uncertainty
Leadership during uncertain economic times requires adaptability, clear communication, and resilience. By bridging the strategy-people disconnect, simplifying
communication, and building resilience, you can inspire your teams to maintain stability and seize opportunities when they come. Now more than ever, leadership isn’t about maintaining the status quo—it’s about proactively adapting to change while staying connected with your people.
Author of ‘Meaningful Work: Unlock Your Unique Path to Career Fulfilment’, Nina Mapson Bone is a people strategist, consultant, chair and keynote speaker. She consults with boards, CEOs, founders and executives on bridging the disconnect between strategy and the needs, motivations and capabilities of their people. Nina’s executive career has spanned three continents and diverse sectors. She was previously the Managing Director of Beaumont People, where she led a period of significant growth for the organisation, during which it was recognised with multiple awards. For more information visit www.nmbpeoplestrategy.com.au
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