Donald Trump is really good in taking people by surprise. Many conventions have been uprooted since he took office. How should business leaders deal with his unpredictability? In my view that requires a combination of strategic agility, emotional intelligence, and a strong focus on your own course. Trump’s style—with impulsive decisions and polarizing statements—can easily throw organizations and leaders off balance.
Here are six principles for CEOs to navigate effectively in the current context:
- Stay agile. Agility is essential in a world where unpredictability is a constant. Organizations must be able to pivot quickly and make decisions based on incomplete information. This requires flat structures and greater autonomy for employees, enabling them to act independently within clear frameworks. Leaders should focus less on control and more on coaching, creating space for the system to establish its own order.
- Focus on your own values and strategy. Don’t get swept away by external noise. It’s crucial to have a clear sense of direction and to remain committed to it, even when the world around you is chaotic. Leaders who constantly compare themselves to others or react to every external stimulus lose their effectiveness. Trust in your own strength and stay focused on your long-term goals. But be ready to adjust your goals if necessary.
- Build a buffer against external shocks. Ensure your organization isn’t overly dependent on one person, market, or policy. Diversification and risk distribution are essential to minimize the impact of unpredictable factors.
- Communicate clearly and consistently. Unpredictability can create uncertainty within your organization. It’s therefore important to communicate openly and transparently with your employees and stakeholders. Show that you understand the situation and have a plan, even if the future is uncertain. This strengthens trust and engagement within your team
- Prepare for the unexpected. Scenario planning can help you prepare for various potential outcomes. What will you do if a trade war breaks out between the EU and the US? What are the consequences if all US troops are withdrawn from Europe? Thinking about such scenarios in advance can help you respond more quickly and effectively.
- Slow down. Don’t get caught up in the turmoil of the day. Take time to slow down and reflect every now and then. Talk to leaders from other organizations to hear how they deal with uncertainty.
In essence, as a leader, you don’t try to control unpredictability, you learn to navigate it. Leaders don’t eliminate uncertainty, they create the conditions in which the organization can thrive, regardless of the circumstances.