Challenging times: Lead through communication

Last week, Carta released its stats on startups that have shut down over 2022-2023 vs previous years (link in comments). Challenging revenue conditions have driven up burn rates, and reports show that over the next 18 months, ~80% of startups are going to need to raise more funds in an inclement lending environment.?

As a leader, you might be facing a lot of these pressures yourself. And yet, even while you process this anxiety personally, you still need to be strong for your people. How are you helping your employees navigate emotionally through this journey of uncertainty??

3 pieces of advice in leading your org:?

1. Increase the team’s peripheral vision. Your employees aren’t stupid. But they probably don’t have access to the same level of context that you do in your position, so it’s your job to push as much of this down as possible. Spend the extra time actively sharing context, from reports like Carta’s or investor conversations etc. This helps employees process not just what they’re going through now but also what’s to come. Rich Stern calls this increasing his team’s peripheral vision (more learnings from Rich and other CEOs shares in the Scaling Leadership Playbook, available for free)?

1. Communication is a two way dialog. Don’t assume that because you told your people something, they’ve absorbed it. For complex concepts, typically people need to question and grapple with them before it can truly be internalized. And the more challenging the concept, the more intentionally you need to curate the process of digesting information. Set up deliberate and explicit structures for two-way dialog - eg fireside chats, AMA sessions, office hours etc. Actively and explicitly invite your people into the conversation.

1. Action matters more than perfection. In moments of overwhelm, the most effective thing any of us can do is take action and push forward. Separate those elements within your control from those outside of it; have your team simplify activity to 3-5 outcomes within your control, and buckle down. At this point, everything else is just noise. Focus on just a step or two forward, the next couple of small wins. Momentum will take care of itself and compound over time.?

#ceo #founderculture #growthstage #startupculture #sparkyourleadership #twowaydialog #leadthroughcommunication