CEOs are navigating unprecedented change, with executive mandates reshaping policies overnight.
How do executives stay true to their values, keep employees engaged and make strategic decisions in uncertain times? Here are six key dilemmas they face and ways to address them.
We need to adapt to survive while being true to our values. Most companies link profitability to fostering a sense of belonging in a diverse workforce. To attract and retain the best people, they have formal, written policies for DEI, inclusive hiring and management practices — while also relying on federal funding.
But company actions are proven through actions, not just policies. Many firms had equity policies they never practiced. Externally mandated changes allow organizations an opportunity to reevaluate and jettison initiatives that were merely check-the-box items but didn’t produce true impact. What matters more than the initiative name is ensuring that how we treat employees strengthens, rather than undermines, business outcomes.
One of my clients, the CEO of an organization reliant on federal funding, has created a framework to respond to executive order mandates. He and his executive team are aligned on their firm’s values and are identifying:
- Items they will change
- Items where they will assess the risk of changing or not changing
- Items they won’t change
It’s easy to get overwhelmed and let new circumstances lead us. Instead, we can consciously choose how to lead in an evolving environment. Adding assessment and highlighting the nuance of decisions through frameworks like these encourages compliance, minimizes disruption and helps maintain key values.
A polarized employee base means we will lose people. In a time of sharp political divides, CEOs must take a stand. As they adopt specific mandates and reject others, they are also, in effect, discounting the opinions of a portion of their workforce. People may not quit outright, but “quiet quitting” can be even more damaging and costly than losing valued talent.
Despite the rifts, this is a critical time to find mutual purpose and shared values. For example, you might say, “We value treating everyone with dignity, staying connected with our customers, and sharing profits so you can continue to support yourselves and your families.” Regardless of personal beliefs, companies should expect and model respectful discourse, courteous customer engagement and prudent choices that support company success through tumult.
Hot issues seem untouchable; everyone just wants me to make the call. Being lonely at the top has intensified. Who wants to turn off half their team members, lose paying customers and be criticized by the (social) media? When controversial decisions arise, all eyes turn to the CEO.
Recently, I ran a workshop for senior executives at a Fortune 500 company. Each attendee was responsible for billions of dollars of revenue. Yet when topics such as DEI came up, they said they were waiting for the CEO’s decision. Executives were reticent not because they had no opinions but precisely because they held strong, divisive views. And CEOs often get seduced into providing answers.
Navigating polarization requires a nuanced, participative approach. Building strong leadership teams at all levels who operate with a “both/and” versus “either/or” mindset is critical. One executive director of a large nonprofit initiated a series of conversations with stakeholders. She highlighted the clash between current ways of working and continued survival. By deliberately compelling opposing viewpoints to engage each other, she’s forcing teams to clarify what’s truly negotiable.
Employee identities and personal opinions are clashing. At one organization, an employee read Facebook posts from two peers expressing disdain for their identity. It made him question whether he could ever bring his whole self to work.
In a leadership workshop, one participant confided that he held hard-right political views and worried that colleagues would shun him, impacting his career.
What if employees could talk through what they have discovered about their co-workers’ opinions outside of work? CEOs must set clear policies on acceptable behavior regardless of the forum. Then, create sessions for connecting across divides as humans. Once we understand what a co-worker values, what they’re excited by, what they’re afraid of and what they dream about, it’s harder to judge them based solely on a single identity or bias.
There are conspiracy theories around every corner. Organizations, like nature, abhor a vacuum. While CEOs confer with their heads of HR, legal and communications, rumors seep into every crevice. To prevent misinformation, hold regular “ask me anything” or listening sessions. Address circulating rumors directly. Rumors become fantastical creations that executives can de-fang by shining a light on them, communicating a willingness to tackle tough topics head-on, and sharing vital information. Recently, when a company’s diversity head resigned, employees assumed he was fired. The CEO swiftly clarified in an all-hands meeting, even sharing the job posting to dispel concerns.
Employee mental health and well-being are at risk. Employees are anxious — worried about job security, family safety and looming changes. Stress is rising; well-being is declining. Remind them of available support resources. During COVID, companies ran special sessions with empathy skills training, meditation, yoga and other wellness practices or held team cooking sessions via video. Now may be the time to reprise these and other practices to keep people healthy and connected.
Unprecedented change brings us to the edge of survival. We can’t control the flow of executive orders, but we can proactively prepare to lead our organization’s response to them. The path to success in challenging circumstances is still ours to determine. This means choosing when to adapt and when to stand firm. By leading with clarity, values and open dialogue, CEOs can bridge the chasm opened by polarized opinions and steer their organizations through uncertainty. That’s what leadership is all about.
