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The Smart Money and Effective Leader Stays Calm

Given our current environment of dealing with a global pandemic and demonstrations in the United States, the smart money (investors) and effective leaders always stays calm. It is not because they are unmoved by the current environment and do not care about historically pivotal moments like now. In fact, it is the opposite. They care and deeply understand that others are looking to them to stay level-headed while helping their organizations make proactive change. In addition, they understand that history teaches us that pandemics and movements have occurred throughout human history; the important question to answer is, "How will your leadership inspire others to make positive, lasting changes that are based upon science and bring people together rather than stoking the fires of divisiveness and fear?"

Leadership research unequivocally indicates that people respond to leaders that are calm, poised, decisive, and thoughtful of all stakeholders. "The world could be falling apart, and it your job to stay calm". Employees feed off leaders’ energy, poise, and confidence. It is not because employees think that leaders cannot or will not make mistakes. In fact, 50% of all strategic decisions fail, 80% of all mergers and acquisitions fail, and 85% of retail investors lose money in the stock market. The point is that human beings are hard-wired to respond to others that exude certainty, confidence, and calmness, especially during times of high pressure and stress.

So, the takeaway question to answer during times like this is, "What kind of leader are you going to be at work and at home?" Let the evidence-based approach of leadership be our guide during these challenging times and into future challenging times as they certainly will come again.

Dr. Cavich

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