5 Things CEOs Can Do When Times are Tough

The uncertainty of the past few years has taken its toll on CEOs.

A recent report by Challenger, Gray & Christmas confirmed that over 650 CEOs have left their jobs so far in 2022. Another Deloitte report found that over 70% of CEOs and other C-suite leaders are considering leaving their companies in 2022. The main reason for it? To improve their emotional and mental well-being which suffered over the last few years.

Startups CEOs are feeling the pressure more than ever before as they try to navigate through an increasingly complex landscape. Startup founders and CEOs often have less resources at their disposal, work much longer hours than corporate CEOs, and often experience more emotional and mental volatility.

My experience certainly aligns with that. My two and a half years as CEO at Chaser have witnessed a pandemic followed by a complete lockdown; a war that has massively changed global financial dynamics almost overnight; and an impending economic recession. It’s been a rollercoaster ride, to say the least.

Economically, financially, and mentally, times are tough — there’s no doubt about that. But we know that tough times don’t last (tough people do!) and we need to use these moments as an opportunity to strengthen both our leadership skill set and business overall. I’ve been reflecting on my learnings from my personal experience and from other CEOs I’ve been surrounded by throughout my career.

Here are 5 things I think we should do when times are tough and what I’m trying at Chaser to weather the storm:

Reflecting on Experiences of Past CEOs

History has a tendency to repeat itself, and there’s no shortage of examples of leaders who have weathered tough times before us. I often find myself reflecting on the experiences of past CEOs, both good and bad, to see what lessons can be learned.

The last major financial recession was in 2008 — and most of us remember it well. At the time, I was working in internal communications for a retail business. Retail was one of the most affected sectors of the economy, and as a company our sales dropped dramatically almost overnight. My role gave me a front-row seat to see how our then-CEO handled a rapidly-deteriorating situation. I often find myself thinking about what he did well and where he could have done better.

Common wisdom tells us about all of the lessons we can learn from past mistakes. Even if we haven’t directly lived through those mistakes ourselves, there’s a lot to be said for taking inspiration from those who have come before us and finding creative ways to navigate these uncharted waters. In tough times, reflecting and researching on how experienced CEOs have handled moments of crisis can act as a compass for us, too.

Cost Forecasting

In order to survive a financial recession, we need to be laser-focused on costs. This means forecasting where costs are likely to increase and putting measures in place to cut costs wherever possible.

At Chaser, we’ve been working hard to forecast our costs for the next 12 months and beyond. The cash outflows that we experienced during the pandemic have been a wake-up call, and we’re now much more mindful of our burn rate.

My goal as CEO has been to make strategic decisions and have the right person in the right seats at every level to help control costs. Though I run a fintech company, no CEO (myself included) is a finance expert — but I can ensure the right metrics are being optimised and kept at arm’s length at all times. Especially in fast-changing startup environments, CEOs need to be constantly ensuring they have the right people to manage costs efficiently.

It doesn’t mean micromanagement of expenses — but it does mean being more mindful of where every dollar is spent and ensuring we get the most bang for our buck.

Transparency with Employees

In times of uncertainty, I’ve learned that being transparent with employees is more critical than ever. They need to know the current situation and how it might affect them.

At Chaser, we’ve been holding regular all-staff calls to update everyone on the latest developments from a recession, stability and forecasting perspective. One lesson I’ve learned through years of experience — especially throughout the pandemic — is that it’s far better to over-communicate than under-communicate. Employees feel reassured and supported when they are kept in the loop. It’s an easy, low-cost, high-impact way to build trust between leadership and teams.

The collaborative approach always outshines the top-down, autocratic leadership style — and it’s especially true in times of crisis. One wonderful outcome of over-communicating: we’ve been getting ideas and feedback directly from employees at all levels of the company — many ideas which we had not thought about ourselves as leaders. It’s been invaluable in helping us navigate these challenges.

Adaptability and Flexibility in Operations

Trends and customer behaviour can change rapidly in a financial recession. Often it means being able to pivot quickly to new opportunities and being open to trying new things that had been outside of the immediate product or service roadmap.

Theoretically we know that “pivoting” in a complex moment is key — but how does an organisation actually do that?

I believe it comes down to keeping operations, systems and processes lean. The leaner the operation, with less bottlenecks and bureaucracy in systems, the more rapidly an organisation can switch gears and try new things without incurring a lot of sunk costs.

As a result, fintech startups like ours are in a particularly fortunate position as we’re often able to move quickly and experiment with new product offerings or features. This approach has served us well at Chaser and has helped us maintain a high level of customer satisfaction despite the challenges posed by a crisis.

Get Back to the Roots

I remember the days when tech companies essentially equated to outlandish perks. Today, let’s face it: the bonuses and perks for startups are different from what they used to be — but so many companies still build their culture around benefits, perks and (often expensive) experiences for teams.

I’m all for perks — but to stay afloat during a recession, we need to get back to the basics and focus on “the core” — both for internal-facing culture and external-facing products. In complex times, I’ve found that the answer to thriving is always located somewhere in the company’s roots, original mission, and reason why this company was created to begin with.

As a CEO, I believe that in tough economic times, much of our time is best spent acting as the guardian of our mission and purpose as a business. At the top of our minds should be questions like:

How can we better serve our customers?

What is the most efficient way to get things done?

How can we make sure that everyone is rowing in the same direction?

When a company’s perks are cut for cost-savings measures during lean economic times, teams need a purpose to keep them inspired. They need to remember that they are part of something bigger — that their work is meaningful. Aside from helping to ensure they continue to produce, it helps create a culture that is focused on longevity, big-picture thinking and the long game rather than a reactionary, short-term one.

One thing I’ve found (almost by accident): being enthusiastic and passionate about your company’s mission is contagious as a CEO. It’s something that employees can rally behind — and when we as leaders are optimistic and excited, they often become so, too.

The role of the CEO is more important than ever during a crisis. They need to be able to navigate the challenges posed by economic downturns and keep the company afloat. However, none of it really matters if teams aren’t inspired to see beyond the storm to the horizon where the rainbow lies. My best learning as a CEO navigating moments of crisis: help teams see the rainbow.

Together, you will all emerge stronger on the other side.

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Sonia Dorais is the award-winning CEO of Chaser, one of the UK’s fastest-growing FinTech companies.