NOW Is the Time to Double Down on Culture
Volatile markets. Real and perceived economic threats. Warnings of a looming recession. All these things make for uncertain times. I am not an economist, so I will not venture into predictions of what will come next in our economy. But, as a psychologist and student of human behavior, I can tell you how to get through periods of uncertainty to ensure your people and organization are thriving when the next period of prosperity comes.
During times of uncertainty, our anxiety increases. When that happens, we are wired to fight, flee or freeze (take action toward the threat, move away from the threat or do nothing and hope for the threat to pass, respectively). One way to manage anxiety — whether your own, your people’s or your organization’s — is to create certainty. So how can you do that?
Doubling down on culture.
Culture encompasses beliefs, behavioral rules, traditions and rituals. This is true whether we are discussing culture in our families, organizations, geographic regions or country. In organizations, traditions and rituals relieve anxiety. Why? Because they offer predictability when it’s difficult to make predictions, certainty in uncertain times, and a focus on things we can control when the world around us seems so far out of control. So what are those things?
- Your Thoughts: Focus on Probability, Not Certainty
Culture starts at the top of an organization or group. How you think about these current times will infiltrate what you say and how you behave. Be aware of your innermost thoughts – the ones you are afraid to say out loud. If they are creating anxiety, you have the power to change them.
Certainty requires black-and-white thinking — believing that there is a single right way or decision, and a wrong one. But you can create more breathing room by moving away from certainty and embracing probability. During uncertain times, think about the probability that any decision will be directionally correct. The path forward is never straight, but knowing that you, your team and your organization are moving in the right direction reduces anxiety.
- Your Words: Ease Anxiety with Openness
With your thoughts under control, we move to your words. They must align with your thinking. If they don’t, you will be perceived as dishonest or inauthentic. Because of mirror neurons, humans sense insincerity like dogs sense fear. So please get your thinking right before you speak to others.
When you do speak to your people or teams, share your thinking with them. Be transparent. Do not try to conceal what they are hearing outside of work. Instead, acknowledge it and make it less scary: “Yes, we are experiencing uncertain times, and no one knows what comes next. But here is what we do know: We have been through uncertain times before. We have always made decisions that were directionally correct in order to ensure the health and well-being of this organization and all its stakeholders – including employees. We will continue to do so.”
- Your Deeds: Protect Stakeholder Relationships
With these types of statements made, it’s now time to double down on what you do — the traditions and rituals of your culture. Just as no human is an island, neither is any organization. Yours exists in an ecosystem with different stakeholders. Amid uncertainty, what should you prioritize in those relationships?
- Double down on communication. What do your strategic partners see going on in their business and industry? What plans and decisions are they making? What can you learn from them? And what information can you share with them?
- Double down on performance metrics. The metrics you currently have may have helped you get where you are, but now is the time to make them more precise. Specifically, focus on team-based metrics. What do your teams produce for either internal or external clients? Here’s the real trick: Teams should create and own their metrics.
- Double down on financial discipline. How much profit does an organization need to make during periods of uncertainty? There is no scientific answer to this question. The answer comes from the art of leadership and executive decision-making. The answer to this question will look different if your organization operates on large margins or thin margins. But all organizations have one thing in common: If you can’t make payroll, you have to cut people.
However, cutting people should not be your first move in times of uncertainty! When you double down on communication and performance metrics, you’ll gain information that will help you save money by increasing efficiency and performance — and, hopefully, avoid job cuts.
No one has ever shown me data of a company that has grown by cutting people. In the worst of times, such as during the pandemic downturn, we had client companies doing everything they could (cutting pay, reducing hours, etc.) to keep their employees. Companies that use workforce reductions as a last resort are the ones best poised to make the most of any economic upturn.
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I’d love to hear your questions and comments. If you would like to discuss this topic further, just drop me a note.
