Leadership and uncertainty in 2023 (Issue 9)

We’ve not even made it out of January yet and already I’ve seen quite a few big articles (including one in Forbes) predicting that the biggest challenge for leaders in 2023 is going to be managing their people through uncertain times while increasing productivity but reducing burnout.

At first glance that’s not exactly a ground-breaking prediction though, is it? I doubt Nostradamus would have been gloating if he’d come up with that one this week!!

There’s also discussion about whether we’re going to see the employer regain control of the remote/hybrid conversation, and that employees will once again have less say; the argument being that as recession hits people will be focused on keeping their jobs and therefore less willing or able to stick to their guns. ?

The first of these predictions makes sense to me, leaders in every sector are worried about this. Without wishing to make too many sweeping generalisations… recessions do tend to create a squeeze on profits, resulting in an impetus for cost reduction and a new (or renewed) focus on productivity. It means perfect conditions for burnout as people are expected to produce more for the same or less money, and are more worried about the impact of socio-economic factors on their workplace, job and career. This could be particularly damaging for those tech-driven companies where burnout can be high and difficult to detect at the best of times.

The second one I’m less convinced by right now, but it may also prove unfortunately accurate. However, from the point of view of any individual business leader I don't see why these predictions should necessarily change your approach to dealing with people.

Why not? Here’s my take:

First, both challenges mean effective, people-centric leadership is more important than ever. Important for maintaining staff engagement, happiness and job satisfaction and important for productivity; and therefore, important to the bottom-line that so many business owners feel forced to prioritise during tough times.

Second, remote/hybrid working is even more vital than last year or during the pandemic years. Lots of reasons why I say that but to distil them down, it’s because getting this right means balancing:

1. The preferences of employees thereby making them feel more valued, listened to and respected, all of which help you on the happiness and engagement issue.
2. The benefits of in-person/face-to-face engagement and team environment, there is definitely value in the informal and collegiate atmosphere that you can build up in a functional (as opposed to dysfunctional) team with the right culture. Again, doing this effectively can deliver big gains in happiness and engagement.
3. Retaining your access to the best talent, because in a world where the employers control the hybrid conversation again inevitably many such employers are going to revert to type; so the ones that don’t, that offer BOTH job security AND meet people’s preferences & needs on remote working (and other areas), are going to be able to attract and retain the best candidates.
4. Maximising the cost reductions you can achieve by avoiding the need for permanent premises. If you’re operating an office-based, tech- or dev- driven business it’s all too easy to let vanity take over and before you know it you’re spending 10k-30k a month (or more if you’re in the right/wrong part of a big city!) on an elaborate office that you don’t really need. Which would seem somewhat foolhardy in the midst of a recession, wouldn’t it? Maybe there’s an argument about perception and business credibility, but I don’t buy that to be honest, and even if I did, I think there’s a limit as far as the cost-benefit goes.

If these are problems you’re worried about in your business, and you’re a first-time leader, founder or manager operating in a tech-, dev-, or innovation- driven company then my free webinar may be worth a watch:

3 Steps To Effective Leadership for First-Time Managers in Technology-Driven Businesses. You can register for it and learn more here: https://live.leadernotaboss.co.uk/free

One thing is certain, as uncertainty grows, people in any organization look to their leadership for answers, reassurance, and a sense of calm competence.

So, Be a Leader, not a Boss.

Thanks for reading!

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#leadership2023 #recession #leadernotaboss