Social entrepreneur, Co-Founder & CEO of Beetroot, an international impact-driven ecosystem operating in Tech and Education.
Being a CEO in 2023 is quite a test considering the pressure to balance macroeconomic uncertainty with the need to innovate and invest in the future. No wonder many management teams are taking a defensive stance and prioritizing cost reduction. Unfortunately, this has led to aggressive measures such as layoffs in some industries.
Arguably, this crisis differs from the ones we saw before, and there’s still a growth mindset among many C-level executives that goes beyond cost, even amidst difficult decisions and reorganizations. The pandemic taught us new skills that CEOs of this generation could use in navigating the recession, like adopting remote work and being strategic about efficiency.
I believe the situation is more favorable for those of us in the IT sector, given tech’s relative independence from a physical location. However, we still need to ensure security and adapt our team’s strategies. Our contingency plans and scenario development, including for worst-case scenarios, must stay on the table.
Looking back at my company’s journey—Beetroot has been working with global clients and different service models for over a decade now—I can recall several examples of how crises became growth factors for us. In 2014, when we were still a young tech consultancy in Ukraine, the Revolution of Dignity and the first large-scale act of Russian aggression motivated us to open Beetroot Academy and start educating people, which eventually became an integral part of the now-international Beetroot ecosystem. Covid-19 taught us how to work and educate remotely, and in the context of the war, the experience of decentralized work played to our advantage.
The Benefits Of Remote Work During A Downturn
There is no question that remote work is here to stay: In Remote’s 2023 Remote Workforce Report—which includes findings from a 2022 survey of more than 1,500 decision makers and employees in North America, Europe, APAC and Latin America—nearly half of businesses reported increasing the number of full-time employees they have working from other countries, with 54% also seeing an increase in total remote employees.
The benefits of remote work are particularly evident to me during tough economic times and downturns. It allows companies to cut down overhead costs and increase flexibility, leading to a more balanced team setup. Startups in particular can benefit from remote work, as they get access to global talent markets with diverse viewpoints and skills. For CEOs, it presents an opportunity to encourage innovation and attract specialized expertise they may not be able to engage otherwise—locally or within their budget.
Remote work has also been proven to be highly productive for many people, with 62% of workers in a 2022 Owl Labs report reporting they feel more productive working remotely than in the office. It is noteworthy, though, that the value of face time should not be underestimated, especially in the remote-first environment. Right now, when people are onboarded and communicate digitally, many find it difficult to fully feel like a part of the team and all the great things the company creates. That’s why regular sync meetings and in-person get-togethers (whenever realistic) are so important—as much for teamwork and aligning around business matters as for building closer relationships within your teams and fostering a sense of community.
Leadership and CEOs need a plan for seamless collaboration to make the most of remote work. Being prepared and enabling teams to access critical internal resources required to do their job anywhere and anytime allows companies to stay operational during adverse events and ensure business continuity.
Key Strategies For Leading A Remote Team
Strong and authentic leadership is what teams expect the most during uncertainty. They need confidence in their management’s ability to take charge and have an action plan. I firmly believe that having a solid, transparent pre-crisis culture is key.
In my company’s case, our impact mission, as well as our culture of self-management and decentralization, has always attracted people who are willing to make a difference and helped us become more resilient. The ability to take autonomous action when needed is crucial for resilience, especially in chaotic moments. CEOs can use specific strategies to effectively lead a remote team during an economic downturn, including:
Communicating Transparently With The Team
Being transparent is crucial for positive and solid work relationships, yet there needs to be a balance between staying connected with your teams and falling into micromanagement. Communicate with urgency: Your employees may have questions and need reassurance quickly. This will also spare your team from unnecessary speculation.
CEOs may instinctively want to keep all strategic talks between their board and a select leadership group during economic downturns and times of hardship. Yet they can use the uncertainty to improve transparency and accountability within their organizations.
At my company, we’ve communicated openly about our finances, goals and challenges with the entire team since the beginning. Being realistic about any situation we’re in has helped us manage expectations, adjust our plans, and prepare to address the setbacks as a team. And ultimately, it has helped us grow stronger.
Creating A Culture Of Trust
Trust is the ultimate foundation of any successful team relationship. Team members need it to work together effectively and leverage each other’s unique skills and talents. Trust allows for true interdependence and synergy to develop within a team.
However, when it’s lacking, things can quickly fall apart. In low-trust situations, people are less likely to be vulnerable and transparent with one another, leading to increased chances of misunderstanding and misinterpretation. A lack of trust can erode the connection between what we feel and what we say. Others intuitively sense this lack of transparency, which can trigger their defensive instincts and further break down communication.
Our company’s mission since its early days has been to positively impact society, the economy and the environment as a tech ecosystem. We build our values around trust; this shared mission has brought the team together in difficult times. It has organically kept us motivated and brought us a sense of purpose and direction, even amid crises.
Stay tuned for the second part of the article to discover more strategies for leading a remote team and the major leadership lessons I’ve learned from previous crises.
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