Leadership in Instability

In today's rapidly changing work environments in Iran, instabilities have become a permanent issue, ranging from economic uncertainties to swift organizational changes. In such conditions, leadership can be challenging. Moments of instability are now a part of existence.

Empathy with the company is not a one-way street. Not speaking is far worse than expressing "bitterness."

Business is not just about expansion; sometimes it is about consolidation, and low-cost yet sustainable operations can often be the key to transition.

This article outlines some key strategies during times of instability and provides real examples from businesses that have implemented these principles:

• Transparency is Key In moments of uncertainty, clear and open communication is essential. Teams need to know what is happening and why. Leaders can build trust by providing regular information and creating an open dialogue even when answers are unclear. Not speaking is far worse than bitter talk.

Case Study: Transparent Salary Model at BufferBuffer, a social media management company, is known for its radical transparency, especially regarding employee salaries. They have a model where the salaries of each team member are publicly announced based on a specific formula. This transparency not only strengthened internal trust but also created a culture of accountability and openness, particularly during financial instability or organizational changes. By maintaining open communication, Buffer managed to keep employee trust and loyalty even when faced with tough decisions.

• Empathy Fosters Deep Connections Instability affects each individual differently. Recognizing how the team copes with conditions and supporting them when needed is crucial. A bit of empathy can have a tremendous impact on morale and commitment.

Case Study: Microsoft's Leadership Under Satya Nadella When Satya Nadella was appointed CEO of Microsoft in 2014, the company faced significant challenges, including cultural stagnation and declining innovation. Nadella introduced an empathy-based leadership style. He encouraged a growth mindset at all levels of the company and showed genuine concern for employee welfare. Even during layoffs or restructuring, Microsoft under Nadella managed these transitions with empathy and support for affected employees. This approach transformed the company culture and led to a more connected, innovative, and committed workforce. Empathy is not a one-way street.

• Leadership is Meaningful Through Example In challenging times, the team looks to the leader as a light—a beacon in the darkness. Demonstrating resilience and focusing on goals can set an example for how the team reacts to difficulties.

Case Study: Howard Schultz and the Revitalization of Starbucks In 2008, Starbucks faced over-expansion and declining sales. Howard Schultz, the former CEO, returned to lead the company. Rather than simply giving orders from above, he personally took action. Schultz made bold decisions, such as temporarily closing thousands of stores to retrain baristas and reinvest in product quality. His hands-on approach, focus on customer experience, and commitment to core values inspired employees at all levels to follow his example. Schultz's leadership through example helped Starbucks regain its credibility and financial health. Business is not just about expansion; sometimes it is about consolidation.

• Focus on Controllable Factors Given numerous external variables, it is important to direct energy toward aspects the team can control. By identifying and working on controllable factors, the team is given “direction.”

Case Study: Southwest Airlines in the 9/11 Crisis After the 9/11 attacks, the airline industry was in turmoil, with many companies facing bankruptcy. Under the leadership of Herb Kelleher, Southwest Airlines decided to focus on what they could control. Instead of reacting by laying off employees or reducing benefits, Southwest remained committed to customer service, employee retention, and low-cost operations. This focus on controllable factors not only allowed them to survive the crisis but also strengthened customer and employee loyalty, positioning them favorably. Low-cost yet sustainable operations can often be the key to transition.

Leadership in times of instability requires transparency, empathy, resilience, and a focus on controllable factors. These principles help organizations navigate through critical and challenging situations with their teams.