Five Leadership Questions Every Boss Should Ask

By David Javitch of Entrepreneur.com



The downturn has brought about many woes, especially in the corporate sector. Balance sheets are in distress, stocks are down, layoffs are up, revenues are off, and employees are extremely worried; and so are employers. The shockwave that's been hitting the world economy demands that entrepreneurs react, and react differently than they have in the past. Unfortunately, the pathways toward effective action aren't always clear. There's no one set of rules to follow during turbulent times that say "This is the best way to go."

Nevertheless, there are some especially useful guidelines to consider during times of crisis that can be helpful to entrepreneurs interested in riding the negative wave and holding out for better times.

Entrepreneurs, like other leaders, often ask similar questions about how to manage in a downturn. Following are five examples of such typical questions, and the answers to them:

1. How should I manage and lead differently in light of the economy? The best response is to communicate, communicate, communicate. Your employees need to hear from you, the person at the top. Lack of communication leads to a rampant rumor mill that most often has harmful effects. Even the best of leaders' intentions can be misconstrued and twisted in the absence of direct communication. The leader must provide regularly scheduled updates on issues such as sales, services, revenues, losses, projections and near- and long-term projects and status.

That said, this message must be clear, upbeat and to the point. Employees, just like stockholders and trustees, dislike having to sift through corporate bluffing and unnecessary details to get to the "meat" of the message. Above all, the message must be honest, even when it's negative. The entrepreneur must not underestimate the level of understanding of the recipients of the message.