I was seated in a crowded cafeteria, surrounded by employees from every function. The atmosphere was tense. We were there to hear from the CFO of the company that had just bought ours. A studious-looking man walked to the front of the room.

“Good morning. I realize you’ve got a lot of questions. I want you to know we bought this company because we believe it has potential. Unfortunately, it is losing $1M a day, and if we don’t change our direction, there will be no company.

 So we’re going to have to do some hard work to turn this around. I don’t have all the answers. But I believe that together, we do. There are a lot of uncomfortable decisions to be made. And yes, we will need to reduce costs — including people costs.

 But each of you has a unique opportunity right now to share your ideas and help us define the next chapter. You have ideas about things we can do differently or stop doing and ways we can work smarter. Our customers need us to change so we can be around for a long time and serve them even better. I look forward to hearing your ideas over the next few weeks.”

With just a few words, I watched this unassuming leader help us start to get aligned for a new chapter. His brief comments were a  model for communicating when there is a lot on the line. And it came down to balance.

Every leader needs to communicate well, but when it’s high stakes, it’s different. You have limited time, limited resources, and the consequences are severe.  In my work with clients driving high-stakes strategies, I’ve found leaders who get this right strike a  balance as they communicate and get faster results.  If not, they waste time and energy.

Leading a high-stakes strategy is a lot like riding a see-saw. The risk is high but the reward is high too. It’s not about optimizing one side OR the other: it’s a balance.  

Keep these four “balancing acts” in mind to communicate effectively when the stakes are high: 

o  Be Transparent about the Risks AND Willing to Explain What it Means

When our new CFO told us we were losing $1M a day, it was a shock. No one had ever told the employees this hard truth before. All of us were working hard in our own silos, but we didn’t know the big picture or the consequences. The transparency itself was a gift. It provided context for why hard decisions had to be made. But that was only the beginning. Leaders who want to get people aligned during bumpy times are willing to take the time to explain why it’s important to solve the problem together. When people understand the facts of the situation and the outcomes they’re striving for, people can get out of their silos and work together faster.

o  Provide  Clear Direction about the Destination AND Be Open to Ideas about How to Get There

When anxiety is high, people want to be able to do something quickly to make things better.  A call to action that is specific and doable can help people feel more in control and empowered because they can have an impact. But ironically, this is not the time to direct every detail from the corner office. By inviting those on the front line to contribute ideas and identify opportunities for improvement, you can build a sense of collective ownership for the new direction. Giving people the opportunity to understand and tackle problems together builds alignment in lots of small steps. And it starts with listening.  

o  Stay Optimistic about the Outcome AND Realistic about the Journey 

I am genuinely optimistic. I was just wired that way.  But I have learned that when people are dealing with hard issues, they don’t want too positive a perspective. Or a pep talk. They just want the truth. A high-stakes strategy requires placing big bets on a new vision. Everyone knows that the road might get bumpy. We all want leaders with a strong vision for what’s possible. But we also want leaders to be honest with us and share the truth about what’s ahead. Whether you lead a small team, or a large organization,  balancing optimism and realism can help build credibility and trust.

o  Convey Urgency about the Results AND Calmly Convey the Why

I often hear senior leaders complain that people “just don’t have enough urgency.” A sense of urgency about creating results is good. When people are internally motivated, work gets done faster, decisions get made more quickly, and customers and beneficiaries are served faster. But when a new strategy requires a big change, everything can feel like a crisis. The “thinking brain” turns off and the “survival” brain takes over – and people cannot hear you. No amount of loud, dramatic fist-pounding is going to get people to sustain change. They may jump at first, but they get numb. If you need people to quickly shift direction, calmly and objectively help them understand WHY something is a priority. People will hear you better.

I know leading a high-stakes strategy can be a lot of work. The see-saw of risk and reward can be overwhelming. But when you start making this balancing act a rhythm when you communicate, you’ll be surprised by all the people who will want to join you — and you can have more fun!

I look forward to hearing your thoughts:)

–Susan

This article is part of my newsletter, which equips and energizes leaders with practical ways to move forward, whether leading a new strategy or getting one back on track. Subscribe if you’d like insights like this one or twice a month. 

Explore my website, www.gotomarketimpact.com, to learn more about my upcoming book, “FastTrack Your Big Idea!” as well as my offerings to help you and your team clarify your strategy and get results faster.  Or message me, and let’s connect! susan.Schramm@gotomarketimpact.com.