Barely two years after the coronavirus pandemic, many companies are facing tougher times again: Adjusting management styles, stagnating or declining sales, investors who turn out to be "fair-weather investors" at the first sign of trouble and increase the pressure instead of supporting, as well as increasingly complex and challenging financing rounds characterise the picture. The "State of European Tech" report by Atomico shows that investments will shrink from 100bn$ in 2021 to just under 45bn$ in 2023. In this period of uncertainty, the true essence of leadership is revealed. As an entrepreneur, you are now in the spotlight - what kind of leader are you?

In economically stable "fair-weather phases", it is easy to be the "feel-good manager", the understanding leader who relies on a cooperative management style or even self-organisation elements. But when the headwind blows stronger, true leadership qualities are revealed. All too often we see how entrepreneurs in times of crisis fall back into old patterns in "panic mode", such as the authoritarian "commander style". Don't get me wrong, I am a great advocate of a leadership style that is adapted to the situation. And especially in times of crisis, clear, quick decisions and crystal-clear instructions and focus are often exactly what is needed. But it is a fallacy to believe that this can be used to excuse a relapse into outdated patterns of behaviour. Falling back into our old behavioural patterns is often not a conscious decision, but an automatism that our reptilian brain serves up to us. is the right way to go, especially when the "freeze, flight, fight" pattern is activated and leads to the amygdala hijack*.

If you rely on a cooperative management style or even self-organisation in "fair weather" times, but become a fear-driven "dictator" in stormy weather, you not only throw overboard the values that were once important to you, but you also risk damaging the corporate culture in the long term.

So what do you need to change about your management style before you approach your team?

1. Self-reflectionRecognise what exactly triggers you and your amygdala. The best way to do this is to take some time out, take a few deep breaths and then think about it. Or even better, talk about it with a sparring partner or trusted friend.
2. Best and worst caseMake a note of what could happen in the worst and best case scenarios. Take your time to think about possible scenarios.
3. Values and purposeReflect on the values and purpose that you share in the company and that are important to you and your decision-making team.
4. Living valuesThink about which values could be jeopardised in times of crisis and what ways you can think of to preserve these values even in difficult times.
5. „Rallying Cry": Create a motivating battle cry with your management team and your employees that will carry your team through the stormy months.

An example? During the coronavirus crisis, I helped a scale-up with almost 70 employees whose primary goal was not to lose any jobs. The "Rallying Cry", which was supported by everyone, was the promise to get through it together, even if cuts were necessary. The result: not a single job was lost. That was a victory for the entire company.

Conclusion:

Your true strength as a leader is not revealed when you steer the ship through calm waters, but when you navigate through the storm without losing your course. Reflect on your values, communicate transparently and find a way that strengthens you all - that is the true art of leadership.

*The amygdala hijack snaps when stress overruns our emotional brain - instincts suddenly rule instead of insight. Triggered by acute stress, it causes us to fight, flee or freeze, with no room for rational thought. In the Stone Age, this was the survival mechanism for us humans - when we were faced with sabre-toothed tigers. Today, the amygdala reacts to situations perceived as a threat (e.g. social situations) with the same mechanism. Do you know this too? You react suddenly, either from 0 to 180 or as if frozen - everything happens at lightning speed and afterwards you ask yourself why? This is the moment when your amygdala takes over. As a leader and entrepreneur, it is crucial to understand this mechanism and learn how to recognise it for yourself in order to slow down the autopilot and stay clear and level-headed. It takes some practice, but it works. I'll explain exactly how here in another blog*