Leading Change - Taking The Hit

The company had not been in a situation like this before. Following several years of rapid growth the market had hit a downturn. Recent challenges, including an unsuccessful acquisition of a smaller company, had led to friction. This had grown into disagreements between different camps, increasing tension.

There were clear opportunities in the market that promised a possible resurgence for the business, but the internal issues were holding the company back.

The unresolved situation created negativity and a drain on energy that was taking a toll on everybody. But it was also clear to you and a few colleagues that these were surface symptoms of deeper deficiencies in the company that would have to be addressed at some point.

Especially challenging situations

As a leader in an organization it is only a matter of time before you are faced with an especially hard decision.

This is the type of difficult situation I am talking about

• Just engaging in the situation is going to be uncomfortable
• There is no clean or best solution that works well for everybody involved
• Every option you have comes at a personal cost to somebody involved
• The decision has a personal cost for whoever makes the decision
• Making a decision is going to be necessary

Because of the emotional component in making such a decision I refer to this as “Taking The Hit”. It means shouldering the responsibility and cost of tough decisions that others may avoid, but are necessary for the company’s health and future.

What is at stake

These types of situations can be unpredictable and emerge from anywhere and anytime. They are not always as complex as in the example above. It can be one clear issue. But they are never easy.

The way these situations are handled can set a lasting tone in the company, often becoming pivotal moments for your organization. So let me paint you a picture, based on situations I have witnessed.

When handled well

When these situations end up being handled well they can completely shift the atmosphere. Experiencing a major release of positive energy in the organization is well within reach.

Significant progress and increased engagement and performance is not uncommon, and I’ve seen even public recognition of the company as a result. The positive change can literally be like removing a wet blanket from a strongly burning fire.

When handled poorly

Conversely, when poorly handled a hard situation can erode trust. The steady emotional energy drain on staff can build up to a quiet undertone of distrust, cynicism and victim mentality. This can lead to initiatives stopping, people becoming passive and some of your high performing staff leaving in frustration.

Such a gradual decline can harm your organization deeply, even if short-term results stay stable through existing market momentum. This type of downward spiral can be very hard to get out of.

‍Avoidance is the number one behavior that makes this type of situation worse, so let’s double click on that.

Why some leaders avoid taking the hit

This is not an exhaustive list, but here is a mix of personal and organizational factors that I have observed myself that can lead to avoidance. I am sure you could come up with more.

Personal factors

Denial - avoids acknowledging the gravity of the situation and hopes it will resolve itself.

‍Inexperience - underestimates the downside of delaying the decision, overestimates their own runway.

‍Looking for the “fantasy option” - discards any option that is not a win-win situation. Insists on finding an option that is good for everyone and will magically turn the situation around. Is not willing to stop looking until they find one. Willing to accept the suffering of other people in the organization, because of this unresolved situation.

‍No process - no clear idea of their own steps for making a hard decision, not sure what to do.

‍Questionable agenda - leader doesn't care enough. Has other higher priorities, often personal.

Organizational factors

Scared to make the call - a competent leader that knows that this decision will mean potential heat may hesitate, a craven leader may not act at all. Fear is especially problematic if the culture and peers do not protect and support decision makers.

‍Low accountability culture - when a decision is hard and will have a personal cost, but it is unclear and ambiguous who needs to make the call, this raises the threshold for anybody to step up and take ownership while still allowing many to second guess.

‍Weak Values Foundation and Over-Focus on Relationships – a leader who lacks clear guiding principles and prioritizes maintaining relationships often struggles to set boundaries and make difficult decisions. By focusing on keeping the team together or avoiding taking sides, they risk becoming overly concerned with navigating different interests and relationships. This can lead them to avoid necessary decisions, ultimately failing to prioritize what is best for the organization’s long-term health and customer responsibilities.

Having established some examples of avoidance, let’s transition to what is gained by somebody taking the hit and how we can approach it with courage.

The value of taking the hit

A bad situation is causing your organization pain and suffering every day.

If you delay making a decision you are not neutral. A leader’s indecision and slowness to act can send a loud message. One that may come to shape your organization’s culture negatively, well beyond the situation itself.

So understand that you are on a timer. Most likely, people will be watching you to see how you respond. People’s trust in you is at stake. And the longer you wait to make a decision, the shorter the runway for making a recovery will be.

The cost of a delayed decision will often be paid by people less involved in the situation - which is not fair to them. Taking the hit offers closure, and clears space for new beginnings. Even when not perfect.

In short, when you as a leader “take the hit”, you do more than just address the difficult situation. You build resilience, increase trust and promote a culture of progress.

It is part of the job

As a senior leader, your responsibility will include “taking the hit” when it is needed. If this is you, understand that it is part of your job. It is what your organization functionally needs and fairly should expect from you as a decision maker, so it can recover from hard challenges and function with resilience over time.

In short, willingness to take the hit is part of good management.

Remember that you are human

I am not going to beat around the bush. Making this type of decision is going to be challenging. You will feel it, even when you are doing the right thing.

So remember that you are human. Here is some advice I can offer.

Decide who you will consult and what you will do, before making the decision.

Then look for the decision that will be the best for the organization, in the intermediate and longer term. That option often tends to be both the right thing to do and will be the option easier to justify and live with.

Do your best, but once it is time to make your call - find your courage and be decisive.

Communicate the decision candidly and fairly, then follow through swiftly rather than slowly. Make sure to offer support for all parties, moving forward.

After you have done your part, give yourself some self-care. Engage in something you love and allow yourself some relief to recharge. Having someone you trust to talk to is valuable, a friend or a mentor. Writing down your experience in a private journal can also help.

As the decision settles in, set a new course and invite people to contribute.