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Hard Decisions Require Empathy

Hard Decisions Require Empathy

In our personal lives, we’re required to change our routines and figure out how to remain productive

Empathy can also be financial

The month of March 2020 has been hard on our country and on the world

In the past two weeks, we have entered perhaps to most surreal experience in any of our lives. I think intuitively many of us believe it may be a more lasting impact than just “60 days at home,” which is why we almost have nervous laughter when we call (Zoom!) somebody we haven’t spoken to since before the crisis and acknowledge how bizarre we all feel right now.

I have seen the insides of more people’s homes and apartments than I probably ever have as we’re invited into this intimate world of videoconferencing.

Just two weeks into it we are just starting to come to grips with what will no doubt wreak big financial, emotional and obviously dire health consequences and suffering for many.

In our business lives, we’re having to deal with decisions that could have lasting impacts on our companies without any compass to guide us in the direction we’re heading. It feels a bit like choosing a fork in the road amidst dense fog and with nobody to guide us on what to do.

In our personal lives, we’re having to change our routines and figure out how to remain productive — often with other people sharing our homes who have their own ideas of how to use our collective space and time. What do we eat? Where do we shop? What is safe? What are my parents doing — are they being safe? Can I plan a Winter vacation or attend a wedding or travel anywhere again this year?

Who the f*** knows.

But you should know that everybody is in exactly this mind space. That’s what makes this so surreal. I find myself struggling to fully relax at bedtime, with my mind spinning about the world that lies ahead and the infinite amount of weekly decisions I’m having to process.

I imagine many of you are, too. It goes without saying that if you find yourself in a really negative headspace PLEASE reach out to any trusted mentor, friend or family member. I promise we’ll all get through this some way and there’s always tomorrow, whatever that holds. I have lost friends who didn’t see the light at the end of the tunnel in past economic hardships.

For founders of startups or for executives tasked with making decisions with all of this incomplete information, the moment calls for decisiveness on every front:

  • how to deal with customers,
  • what to do about expenses,
  • what to tell board members / investors,
  • what happens with fund raising,
  • do I need to lay off employees or deal with a furlough,
  • do I qualify for government assistance?

If your head isn’t spinning you haven’t fully grasped the severity of the situation.

Each of these decisions could be a blog post in its own right but for today I want to avoid tactical advice and offer something more about your temperament as you wade through complexity and deal with decisions that affects the lives and the livelihoods of others. To say it simply ….

I know that I shouldn’t have to say that, as it seems obvious. But in the past two weeks I’ve heard many cavalier comments about cuts, renegotiations, changing terms, “the market environment dictates this” or “never waste a good crisis” or “you just need to cut 25% of your staff” because it seems everybody is doing it. I know that many people are just short-handing given stressful times but do try and pause and think about your actions & words and how they will affect others (or whether they’re the right actions in the first place).

In the words of my friend and a CEO with whom I work,

“Yeah, I know I need to make some cuts because our demand has changed, but I want to do this with a scalpel and not with an axe.”

He produced a very detailed analysis of his customer base and which would be affected. He enacted a program to proactively offer payment holidays to customers in obviously “hit” industries like travel & entertainment. He showed industries where demand was likely to hold strong and he outlined a case for how he could protect as many jobs as possible. He asked for a few more weeks to gather market signals before enacting change. It was the thoughtful response of an empathetic leader.

The driver of your decisions must be logical, rational and economically sound. You need to consider:

  • Has demand for my product fundamentally changed in ways that will persist?
  • How long is my cash runway if this demand doesn’t recover for the foreseeable future?
  • Is there a viable path to raising money / strengthening my balance sheet as one solution?
  • If not, how much must reduce costs to give our company enough runway to weather this current storm?

The inevitable decisions may mean you shed employees, suppliers, offices, bonuses, contractors — you name it. But here is where empathy becomes most critical. It is very easy to want to insulate yourself from feeling the extreme emotions that will come from the loss of a job or for a supplier of yours with the loss of an important customer.

Don’t insulate yourself — handle things personally and be a leader that is present in times of crisis. And if you have to make these hard decisions, empathy goes a long way.

If you have to let employees go or have to furlough them do it 1–1 or have senior members of your staff divide up employees and do each one 1–1 (or 2–1 if you need to have HR in the room (or “in the Zoom”) but my point is that each affected employee deserves a private meeting. And they deserve compassion because whatever stress level you are under, your actions are going to make their stress levels just as bad if not worse.

They don’t need to hear you say in an antiseptic way, “Look, we have no choice. It’s your job or we all run out of cash.” That might be true, but it lacks empathy. It should be something more like, “Sadly we have made a decision that your job is being made redundant. I’m very sorry that this will affect you and I don’t take lightly what a burden it must be to you.” Of course, that doesn’t change the outcome, but it’s the humane thing to say.

You can insert your own wording or phrasing but the point is to acknowledge the pain, the cost, the consequence of your actions — even if you had no choice. Let the other person speak. Let them emote. It might be that they have to cry or they might have to yell at you — whatever.

This isn’t the time to argue back that you had no choice or that “they weren’t really pulling their weight anyways” or whatever else is playing in your head. This is the moment to let them have their say. It doesn’t change anything. This is a moment to be calm, let others vent and politely move on.

Empathy can also be financial. You need to make sure that you’re making sound economic decisions for your company so I’m not advocating being cavalier about money because ultimately if you run out of cash then everybody loses his or her job and every investor loses his or her money.

But at the margin, if there are things you can do to be compassionate about severance or medical benefits or helping people navigate government assistance — you should do all that you can. If your company can help with job search, or resume writing or providing references or calling other companies to tell them you did redundancies — you should do it.

The month of March 2020 has been hard on our country and on the world and the sad reality is that this is still likely just the first act in a long series of heart-breaking stories and circumstances around the world. In times like these your friends, family, associates, colleagues, employees and business partners need you more than ever.

If we know each other personally and you think I can help you please reach out. I promise I will make time.

[This post first appeared on bothsidesofthetable.com and has been reproduced with permission.]

Note: The views and opinions expressed are solely those of the author and does not necessarily reflect the views held by Inc42, its creators or employees. Inc42 is not responsible for the accuracy of any of the information supplied by guest bloggers.