How to lead with courage and clarity in a foggy economy: Lessons from a hedgehog

The world is facing unprecedented challenges and uncertainties due to the global pandemic, war, and the recent collapses of FTX and SVB. Many businesses and industries are struggling to survive and thrive in this economic crisis. As leaders, we have to navigate through this foggy situation while keeping our vision, values, and goals intact. How can we avoid being like the hedgehog in the fog, who gets lost and scared by unfamiliar situations?

The hedgehog in the fog is a character from a 1975 Soviet animated film by Yuri Norstein. It tells the story of a little hedgehog who goes to visit his friend the bear every evening to drink tea and count the stars. One night, he encounters a thick fog on his way and falls into a river. He meets various animals and objects that seem frightening or mysterious in the fog, such as a white horse, an owl, a dog and falling leaves. He eventually finds his way back to his friend, but he is changed by his experience.

The film is often interpreted as a parable about life, death, friendship, and courage. It also illustrates how we can react to uncertainty and change. The hedgehog is curious but cautious, adventurous but anxious, and loyal but lonely. He faces his fears but also questions his identity and purpose. He learns something new but also loses something old.

As leaders, we can learn from the hedgehog's journey and apply some principles to help us lead through an economic crisis:

Keep your team informed: Your team is aware of what's going on in the world, and they will have questions – even if they don’t ask you directly. Communicate context and be careful with your words. Be truthful but positive, practical but hopeful. Provide clarity and direction on what's important and what needs to be done.

Find improvement opportunities: Economic crises naturally mean resource scarcity. The chief financial officer and finance organization at your company will likely limit company investment by making sure every dollar spent has a clear ROI. This means you need to optimize operations and cut costs. But it also means you need to innovate and create value for your customers. Look for ways to improve your products, services, or processes that can increase efficiency, quality, or satisfaction.

Make delivery more agile: During economic crises, leaders need to show strength and endurance. This means keeping your stress private. When layoffs or hiring freezes happen, show empathy and compassion, but don't panic. The employees who stay will be watching closely and it's your job to keep them focused. To do that, you need to make delivery more agile by using agile methodologies. Break down big projects into smaller tasks that can be completed quickly and iteratively. Prioritize value over scope. Get feedback from stakeholders frequently.

Give your boss and stakeholders the visibility they need: Leading during an economic crisis means adapting our thinking, and shifting from high growth and scalability to efficiency. Focus on being agile, make strategy center stage, and ensure high visibility at all times. Keep your boss updated on your progress, challenges, and risks. Provide data-driven evidence of your impact and value proposition. Align your goals with their expectations.

Leading in an economic crisis is challenging for you and for your teams. Applying these principles will help you change the way you think and operate, and will help you be the leader that your business and your team need during this time of uncertainty. You may not be able to count all the stars like before, but you can still find some light in the fog.