The true measure of leadership isn’t revealed when everything is running smoothly but in times of uncertainty—whether economic or otherwise. It’s during these challenging periods that effective leadership is most crucial. A leader’s ability to avoid missteps and learn from past mistakes becomes vital to the well-being of the business and its stakeholders.
So, what are the common mistakes leaders often make in tough times?
1. Trying to Do Everything
In moments of crisis, some leaders attempt to take control of every aspect of the business. However, as we’ve noted, successful companies (even those facing challenges) are made up of countless moving parts—far too many for one person to manage. In uncertain times, strong leaders focus on the most critical areas, delegating the rest to their teams.
2. Failing to Seek Input
Leaders should never try to navigate difficult times alone. Yet, some frustrated leaders become less open to feedback, dismissing input from others as “obstructive” or “uninformed.” This creates disengagement and alienation within the team. A more effective approach, as noted by the Harvard Business Review, is to introduce a “deliberate delay” between ideas and decisions. Encourage feedback from trusted colleagues, advisors, or board members. Keep the process quick and informal to test reactions and refine strategies before moving forward.
3. Fear of Failure
No leader enjoys the prospect of failure, but the risk of failure is ever-present in challenging times. Leaders who are afraid of failing may hesitate to take the bold steps necessary to turn the business around. Successful leaders, however, embrace the “fail fast” mentality, recognising that setbacks offer valuable learning opportunities. Strategic missteps should be viewed as stepping stones toward future success, especially in an ever-changing business landscape.
4. Avoiding Responsibility
When things go wrong—whether it’s a failed initiative or critical mistakes made in an attempt to stay afloat—it’s easy to point fingers. However, leaders who avoid accountability create a culture of evasion and mistrust. A true leader is accountable for guiding the organisation, whether the outcomes are positive or negative. Owning mistakes fosters a culture of transparency and trust, essential for maintaining morale.
5. Reducing Communication Instead of Increasing It
When a business is struggling, some leaders may be reluctant to share details with their teams. However, withholding information only breeds uncertainty and fear among employees. A better approach is to increase communication, whether through weekly status updates or daily check-ins. While this doesn’t eliminate employee concerns, regular updates provide clarity and help the team stay focused on their tasks.
Uncertainty is inevitable in business, but leaders who remain adaptable, transparent, and decisive are best positioned to steer their companies through tough times and toward future growth.