In my years as a business coach, I've seen it time and again: leaders who are willing to make the toughest decisions are the ones who steer their businesses toward long-term success and stability. It's not just about making decisions; it's about making the *right* decisions, even when they're the hardest ones to face.
The Crucial Role of Accountability
Accountability isn't just a buzzword; it's the backbone of effective leadership. But here's the kicker: it starts with the person in the mirror. If we, as leaders, can't hold ourselves accountable, how can we expect it from our teams? Accountability involves clear communication, defined expectations, and, yes, those uncomfortable but necessary crucial conversations.
Embracing Difficult Decisions
One of my clients found themselves in a challenging position. Their business struggled with profitability, bogged down by underperforming team members and a bloated organizational structure. The difficult but necessary decision was clear: they needed to right-size the team.
The process involved laying off several underperformers and managers without enough people to manage. These were not easy conversations. They required a deep sense of responsibility and a clear communication of why these decisions were essential—not just for the bottom line but for the health of the team and the future of the company.
Post-restructuring, the company found itself in a much stronger financial position, with a positive profit margin that allowed them to shift out of survival mode. Freed from the constant stress of financial duress, the leadership team was able to focus on creative problem-solving and growth strategies. They were no longer fighting daily fires but were planning for long-term success.
This shift also brought an unexpected but welcome change in company dynamics. With a leaner team, members found new ways to contribute more significantly, enhancing their engagement and job satisfaction. The atmosphere shifted from one of anxiety and tension to one of collaboration and innovation.
Many shy away from tough decisions because they're challenging and uncomfortable. Whether it’s addressing underperformance, restructuring a team, or cutting ties with a longtime vendor, these decisions can feel daunting. However, dodging them only leads to bigger problems down the line.
Imagine you're driving a bus (thank you, Jim Collins, for this analogy). As the driver, it’s your job to ensure everyone on your bus is in the right seat—or that they get off at the next stop if they’re not contributing to the journey’s success. It's not just about being harsh; it's about being fair and direct for the good of the entire team and the mission ahead.
The Power of Crucial Conversations
Crucial conversations are at the heart of these difficult decisions. After studying and teaching how to have crucial conversations these past few years, I wish I had had this framework or tool at the time. Laying off all those people one at a time was probably 10xs harder than needed had I known how to have crucial conversations. What I’ve learned is that within a crucial conversation, these are the moments when transparency and honesty come to the forefront. Engaging in these dialogues isn’t just about pointing out what’s wrong; it’s about opening pathways to improvement, understanding, and alignment with core values.
Here’s how you can approach these conversations:
- State the Facts: Begin with what’s observable and indisputable.
- Share Your Stories: Explain your interpretation of the facts. This opens up the dialogue for multiple perspectives.
- Own Your Part: Acknowledge your role in the situation. This isn’t about taking blame but about showing responsibility.
- Clarify the Outcome: Discuss what a successful resolution looks like. What are we aiming to achieve?
You Don’t Have to Go It Alone
Every tough decision made with the intent of bettering the organization contributes to a stronger, more aligned team. When people see that leadership makes tough choices for the right reasons, it builds trust and sets a standard for everyone to follow.
This year, let’s not shy away from the decisions that might be tough but are necessary. Let’s embrace the opportunity to lead courageously, ensuring our teams function and thrive. And remember, you don’t have to do it alone. Whether it’s a coach, a mentor, or a trusted advisor, having someone to help shoulder the burden can make all the difference.
If you would like my support in making difficult decisions as a business owner that may lead to crucial conversations, please DM me on LinkedIn. It would be an honor to help you create accountability for your business and, most importantly, yourself.
Here's to strong decisions, accountability, and the most successful year yet!
Best,
Todd
