Episode #524: Dealing With Problems As The Leader

 
Business difficulties, particularly those arising from crises such as the COVID-19 pandemic, compel CEOs to consider their approaches. I've seen that internal organisational dynamics call for subtle management, even though industry-wide dangers can be lessened by macro-level measures like government backing. Employees start worrying about the company's existence during uncertain times, which raises concerns about the openness of the leadership. Although hard effort and commitment are highly valued in Japanese corporate culture, I think transparency should be judiciously embraced. While conveying the financial reality is important, it also needs to be combined with a well-thought-out message of hope. Even if a leader's emotions are reflecting the seriousness of the issue, their cheerfulness becomes crucial.

It is crucial to strike a balance between providing the team with motivation and laying out concrete plans. Preservation of currency is paramount; during hard times, cash is compared to oxygen. A number of variables, including remaining cash, burn rate, revenue projections, and possible cost-cutting initiatives, influence how transparent financial information is made available. The ability of a leader to communicate is especially put to the test when industries recover unevenly or when new employment prospects present themselves. A leader must be able to walk a tightrope between communicating urgency and causing fear in order to successfully navigate this problem.