Revised figures published by the Office for National Statistics this week revealed that the UK’s productivity crisis is worse than expected. This data presents yet another economic warning sign that’s difficult to ignore.
When combined with persistent low growth, Budget-induced cost hikes and a rising minimum wage, the challenging environment facing businesses today will inevitably persist well into the new year.
As I touched on last week, however, businesses must face these challenges head-on if they are to emerge on a secure footing. In addition to sustained investment and a focus on futureproofing, this is also a crucial moment for leaders to step up.
Now, more than ever, business leaders must look to support, inspire, and guide their people and organisations and serve as the steady anchor in an otherwise choppy sea.
The role of leadership in challenging times
Leaders of successful service-led organisations differentiate themselves by fostering an empowered, resilient, and motivated workforce. In times like these, the need to do so is even greater.
When conditions are tough, it is natural for people to look to their leaders for direction. Strong and empathetic leadership inspires confidence and boosts motivation. This not only enables employees to navigate tricky and unfamiliar situations, but also keeps customers, staff, and bottom lines happy by maintaining – or even improving – service standards.
As our Service Leadership Breakthrough Research shows, 54% of employees believe motivating and engaging staff is the best route to improved customer service.
Stepping back to the organisational level, the best leaders are able to maximise growth in good times and steady the ship in uncertain times. Currently, conditions are undeniably tough, necessitating difficult and bold decisions.
By leading with integrity and putting the interests of both staff and customers at heart, leaders can help their organisations focus on what matters.
This allows them to avoid knee-jerk pitfalls like service cuts and, instead, make the right decisions to maintain operational performance in the short-term while laying the foundations for success in the future.
Leading through service
Ultimately, the organisations best able to navigate uncertainty are those that understand the importance of balancing support for their people with a commitment to their customers. For me, service leadership sits at the heart of this.
Leaders can and should look to inspire a customer-centric approach throughout the business. Every decision, whether strategic or operational, should be made with the customer’s needs and preferences in mind, ensuring that the focus remains on delivering value and improving service levels – which will in turn improve profitability.
Equally important is fostering a culture that values effectiveness over efficiency. Rather than cutting in a way that makes the service experience worse, this means doing the basics right and striving for service excellence.
As leaders, we need to trust and listen to our people, supporting them with direction and empathy. We need them to feel connected to the business and develop their ability to zoom out and prioritise long-term, strategic decision-making.
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