True leaders create meaning in a world of uncertainty and chaos with Leadership Storytelling

A world of uncertainty can create fear and uncertainty

Global economic uncertainty has been on the rise, triggered by global shocks like Brexit, the COVID-19 pandemic, and war in Ukraine. According to the International Monetary Fund, global economic activity is experiencing a broad-based and sharper- than-expected slowdown, with inflation at the highest it’s been in several decades.

Uncertainty impacts us all personally and plays on our negativity bias and our uncertainty tolerance. Our uncertainty tolerance determines how we react. Some people cope well with not knowing what to expect, while others find it hard. People with higher uncertainty tolerance have better emotional resilience, adaptiveness, and risk appetite. People with lower tolerance tend to be more risk averse, have trouble making decisions, lack spontaneity, seek frequent reassurance, and expect the worst outcomes. It’s not uncertainty itself that’s upsetting, but the possible negative events that appear more certain or the positive outcomes that appear less certain. This is what induces fear and anxiety. Uncertainty makes it harder to make decisions about the future. Firms are uncertain about product demand, supply chains, and workforce requirements. Individuals are uncertain about their future work prospects, their incomes, the value of their pensions and savings, and the cost of living. Organizations and leaders with lower uncertainty tolerance will be less resilient and adaptive to these impacts.

Empathetic leadership navigates uncertainty

Leaders must take time to understand employees’ feelings and concerns, but do so with authenticity. Situational leadership is crucial. Be transparent and positive, remain focused, and stay true to your goals. Take an open and balanced approach to normalize fear. When leaders talk about people’s fears and concerns openly, including their own fears, their teams are likely to stop wasting energy pretending that “everything’s fine” and focus on problem solving, creative thinking, and collaboration instead. Give people a clear vision of the future and reinforce it in the face of uncertainty. Energize employees to push through the barriers of doubt. Communicate relentlessly and create a continuous listening and response cycle with employees to build trust. Regularly engage in dialogue for how work gets done to promote resilient behaviors like adaptability and inclusivity. Encourage people to step out of their comfort zone to solve problems and create new value while giving them a sense of predictability and safety.

Leadership Storytelling creates sense and meaning

Leaders can connect and influence with empathy and emotion through storytelling. Storytelling is at the heart of empathetic leadership. True leaders recognize the stories that exist within the organization and share the ones that they need to tell to navigate uncertainty.  Leaders must find and listen to the stories shaping people’s fears and concerns. Stories are abundant especially in times of change and uncertainty. There are anti-stories and pre-existing beliefs that impact how employees perceive and resist change. Leaders can use stories to boost teams’ confidence, raise their morale, and engage them with a sense of purpose to build their resilience. When a leader tells a story that’s personal, open, and honest, they bond with the audience. The brain looks for a similar story when it hears a “vulnerable” story, so leaders must not be shy about showing vulnerability. Doing so makes others more willing to share their experiences and creates resilience within the team.

Leaders can combine the structured approach of sense-making frameworks such as VUCA or BANI with leadership storytelling to build a resilient and confident future with their teams — no matter the crisis. While VUCA is more established, BANI’s emphasis on leaders focusing on human behaviors and elements calls out the value of leadership storytelling as critical skill leaders must use to guide their teams and organizations through uncertainty. My Forrester report Use Leadership Storytelling To Create Meaning In A World Of Uncertainty And Chaos explains how to do this.