Let’s face it: being a leader is never easy, but it’s a whole different ball game during economic or political turmoil.

In addition to the Wars in Ukraine and Gaza, a whipsaw election in France, unsettled issues around remote work, and mind-blowing advancements in AI coming every few months, the U.S. election got even more heated after an assassination attempt.

It’s a VUCA world (volatile, uncertain, complex, and ambiguous).

It’s times like these that leaders show their mettle. It can also make you more nervous than a dieter at an all-you-can-eat buffet.

So, here are the ten colossal mistakes you need to dodge if you want to keep your head above water and steer your ship to safety.

1. Silence is Deafening: The Lack of Clear Communication

Silence breeds rumors and fear. It’s human nature to abhor a vacuum, so people will conjecture and that conjecture will become conventional wisdom. I’m always amazed at how quickly rumors start and how stubborn they can be to refute.

The longer you take to communicate, the more room you give people to fill that information vacuum.

People are on edge and need to know what’s going on. Be transparent, be frequent, and cut the corporate jargon. Straight talk only.

2. Ignoring the Human Element: Employees Aren’t Robots

Economic and political chaos messes with people’s heads. Pretending that your team isn’t mentally preoccupied on occasion and that a situation will just go away on its own is dangerous wishful thinking.

Acknowledge the stress, offer support, and show you actually care. Mental health resources, open forums for venting, and genuine empathy are your best friends here.

3. Stuck in the Mud: Failure to Adapt

It has been said that the best part of strategic planning is the thinking that goes into creating it. We gain clarity on the situation we are working in, the opportunities, and the challenges. Then, the best plans have supporting actions, deadlines, and measurable results

If nothing else, COVID-19 taught us that even the best strategic plans must be tossed aside—even if temporarily—to adjust to rapidly changing situations.

While a global pandemic is an outlier, being rigid with a strategic plan can be a death sentence in turbulent times. When the game changes fast, and if you’re not adapting, you’re losing.

Regularly reassess and be ready to pivot. Flexibility isn’t just a buzzword—it’s your survival strategy.

4. Tunnel Vision: Overlooking Long-Term Goals

Related to the above, and making things rather tricky, is that while adapting, you can’t lose sight of the horizon. Pivot too hard, and when the waters recede, you might be left out on an island.

Balance short-term fixes with long-term strategies to ensure you come out stronger on the other side.

5. Ghosting Your Stakeholders

Your brand is built on your reputation, which takes years to make and can be destroyed in weeks or months.

When things are hard, going radio silent, giving half-true updates, or being Pollyanna is a huge mistake.

Your stakeholders need to know you’ve got a plan. Keep them in the loop with honest, regular communication. Transparency builds trust, and trust is your lifeline.

6. Killing the Culture

Culture is harder to kill than a brand, but it can be done. We’ve seen it.

When the pressure’s on, reinforce and lean on your core values—don’t abandon them. That will help keep the team spirit alive. A united front can weather any storm.

7. Losing Your Temper

We get it, the pressure can be immense. People are relying on you to deliver, and the stakes are enormous for an organization, a team, and people’s livelihoods.  Losing your cool will generate less confidence in you, not more.

If you need to blow off steam, do it productively with a person you can vent with, taking a few minutes for yourself, get a good workout, or do whatever you do to regain your calm.

8. Playing It Safe: Neglecting Innovation

When things are uncertain, you need to embrace innovation. While you are not certain which way the future will unfold, having developed a number of options around creative solutions will help.

9. Financial Fiascos

People, in general, have terrible memories. We get lulled into thinking that when times are good, they will last longer than they do. We know—but forget—that the global economy is cyclical, and there are regular recessions, some worse than others.

Even when times are flush, it’s important to keep a tight grip on cash flow, cut unnecessary expenses, and invest wisely.

Wise leaders know that a downturn can present huge opportunities if they have prepared for it.

10. Believe the Past is the Future

Sometimes, it’s more helpful when the VUCA seems dramatic and comes with a sudden shock, not a slow-moving train wreck.

When faced with uncertainty, people often double down on current strategies because they have worked in the past. As investment people like to say, “Past performance is no guarantee of future results.”

While we think we are smarter than this, a number of small liberal arts colleges in the United States have been closing while other colleges and universities are facing cuts because they believed demographic and other trends wouldn’t impact them. The leaders of these institutions are not dumb.

Doesn’t apply to the for-profit world? Tell that to Blockbuster, Borders Books, and CD makers.

How To Help Your Organization Prepare?

One of the best ways to help organizations to deal with a VUCA world is to hire Pathfinders. These individuals are flexible, innovative, and adaptable, which is ideal in uncertain times.

We have developed a propriety online assessment tool to help you hire Pathfinders or identify them in your organization. Feel free to contact us to find out more.