
Leading your team through an economic crisis requires a new type of communication. I learned this first-hand in 2020 as Covid plowed through the world. Many industries were hit hard seemingly overnight. Others had more of a lag to them as the economic effects cascaded. While others, gratefully, weren't impacted as profoundly, or perhaps are even in a position to thrive. Leaders everywhere were faced with seemingly impossible decisions and a need to communicate hard truths to their teams.
In his book Good to Great, author Jim Collins profiles an Admiral from Vietnam named Jim Stockdale. Stockdale was shot down, and he became a prisoner of war. He was in a POW camp for eight years, tortured more than twenty times, and never knew if or when he’d be released. Eight years is a long time for something like that. Stockdale saw other POW prisoners come and go during that time. But after those eight long years, he made it back home to his family and country.
Naturally, he has been interviewed a good bit about his experience. He and his wife also wrote a book about it through the lens of their relationship. So, as Jim Collins was learning about Stockdale’s time, he was curious to learn how exactly he managed to survive. It was clear that Stockdale never doubted that he would make it. That was key. But there was more. One of the questions Collin’s asked is, “Who didn’t make it out?”
Stockdale quickly answered, “Oh, that’s easy. The optimists.”
What he noticed was that the prisoners who optimistically expected to be free by Christmas were let down. Then they’d expect to be free by Easter. Let down again. Then they’d wait for Thanksgiving — only to be let down again. And so on. That led Stockdale to note this lesson:
You must never confuse faith that you will prevail in the end — which you can never afford to lose — with the discipline to confront the most brutal facts of your current reality, whatever they might be.
That is where many business leaders find themselves during a crisis. They have faith in the end of their story as a team. It’s strong. It’s resolute. But at the same time, they also recognize the brutal facts and must plan accordingly.
That is why leaders need to lean into discomfort when facing a crisis.
In Practice
What does “Clarity Over Comfort” look like in practice? That will depend, in large part, on what your team looks like. I think there are a few constants, though, that we can consider for most of us.
Be Real
The first is that we can’t shy away from bad news or bad projections. If you anticipate your revenue dropping to a point where you may need to make changes to your team (compensation reductions, furloughs, layoffs, etc.), you may initially want to hold onto that information. After all, why spread fear through your team, right?
Well, when a crisis is big enough, it’s a near-guarantee that your team is already wondering if their job is at risk. So if it is, tell them. If it’s not, tell them.
No news or communication is worse than bad news. The absence of updates leaves a gap in one’s awareness that gets filled in with stories and assumptions. Our nature as humans is to fill in the gaps with stories. Your team, and you, for that matter, are much better off with accurate bad news.
Conversations about potential cutbacks are not fun; in fact, they’re often avoided. But if there’s ever a time to throw comfort out the window, it’s now. Your team deserves as much clarity as you can provide. As one of our team members remarked during Covid, “Clarity has ironically resulted in increased comfort. Being on the other side of this messaging, clarity and transparency went from being uncomfortable to empowering — I feel better knowing what could be ahead.”
Communicate Frequently
When walking through a significant crisis, it's not uncommon for there to be new information weekly, if not daily. If you currently communicate with your team in a monthly or bi-weekly fashion, you’ll need to consider if it will be valuable to your team if you get out of your comfort zone and increase that frequency.
Fluid vs. Definitive
When sharing updates with your team, it’s important to be confident and composed, but not definitive. One thing crises often have in common is that you can’t confidently predict how things will shake out. You need to approach your plans and communication with a fluid mindset, understanding you’ll get certain things wrong, or you’ll need to pivot multiple times along the way.
Everyone has an important part to play in this fight. Leaders shouldn’t be putting on fake smiles and pretending this isn’t hard and taxing. You should be steady, poised, and solutions-focused.
Take time to appreciate the positives, but don’t bury your head in the sand. As Admiral Stockdale said:
“You must never confuse faith that you will prevail in the end — which you can never afford to lose — with the discipline to confront the most brutal facts of your current reality, whatever they might be.”
I invite you to commit to Clarity Over Comfort with your team. Lean in, trust the team, band together, and fight the fight together.
And never lose the faith that you will prevail in the end.

by Erik Reagan
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