In Uncertain Economic Times, Follow This Culture Framework
Do you feel it? I certainly do. And so do many of my client companies. Uncertainty. It’s palpable. And it’s clearly affecting the actions of companies and behaviors of employees. Companies are reducing their expenditures. Employees are “job hugging”: staying in jobs longer for fear of what comes next.
Uncertainty has negative effects on organizations and people’s health
- Seventy percent of employees report that uncertainty is hurting their productivity.
- Findings show that uncertainty can create an over 60% reduction in productivity.
- Sixty-seven percent of employees said current uncertainty makes them feel worse.
- Uncertainty creates a 128% greater risk of depression as well as other health risks.
What can you do as the leader of a company, department or team? Here is a framework you can apply, starting today.
- Double Down on Transparency
Why? In the absence of information, people make stuff up. And the stuff they make up doesn’t quell fears; it exacerbates them. Transparency is a form of openness, which we know is key in developing trust. In my Culture Catalyst course, we define accountability as transparency. It allows us to discuss everything: the good, the bad and the ugly.
Where do I start?
- Share regular updates on external conditions (even when employees have heard them before), tactical and strategic changes, and the financial health of the organization.
- Get comfortable saying, “I don’t know.” This statement, if true, communicates that you are all in this moment together.
- Start (or continue) Q&A sessions. Even if there is no new information to provide, sharing anxiety is better than going through uncertainty alone.
- (Re)focus on Your Cause
Why? Economic uncertainty creates doubt and instability. Refocusing on your cause—the big “why” of your organization—reminds people that some things remain stable. Cause is a key driver for organizations large and small, but most organizations don’t have a cause statement—even if it’s in their DNA. During uncertain times, elevate your cause.
Where do I start?
- Be intentional and explicit about how your actions are tied into your organizational cause.
- Bring your cause statement into daily conversations and interactions.
- Tell stories and celebrate employees who are focused on and exemplify living your cause.
- Commit to Connection and Belonging
Why? Connection and belonging are primary human drives. Uncertainty and its accompanying anxiety lead to isolation and, potentially, internal competition or silos. Connection and belonging bring down silo walls or keep them from being built. When there is a threat, turn to internal human drives.
Where do I start?
- Create new team rituals or double down on existing ones. Examples: weekly check-ins, one-to-ones, team lunches, celebrations.
- Recognize and celebrate collaboration. Move beyond individual recognition.
- Set up rotating lunches or other meetings with people across your organization.
- Give Autonomy Through Flexibility
Why? Human beings want agency. Rigidity creates additional stress and anxiety. Flexibility allows teams and individuals to adapt in a way that works for everyone and keeps them moving forward. We have been teaching companies to use flexibility as a cultural reward for years. It is more important now than ever before.
Where do I start?
- Delegate decision-making to the lowest point in the organization that has the ability and knowledge to make those decisions.
- Encourage and reward experimentation. Create quick feedback loops to reduce delays or slowdowns.
- Offer flexibility wherever possible. If an employee proves the work can get done, give them what they are asking for.
- Celebrate Wins, Even Small Ones
Why? Celebrating wins builds confidence and creates predictability in an unpredictable environment. It also maintains momentum when progress may feel slow.
Where do I start?
- Acknowledge incremental changes in the direction of the goal, even if the goal has not yet been met.
- Tie celebrations back to your cause, not just the specific outcome achieved.
- Ensure all levels of the organization have visibility into who and what are being celebrated.
Which of these steps will you implement today? Please write and let me know!
I’d love to hear your other questions and comments as well. If you would like to discuss this topic further, just drop me a note.
