What is uncertainty in business?

Uncertainty means dealing with unpredictable circumstances, sometimes with unknown variables and no way to measure possible outcomes. Businesses don’t always have much information to work with during these times. You often can’t control these circumstances, and they can hurt your employees and the business.

Examples of events that lead to uncertainty include:

• Pandemics
• Political changes or instability
• Regulatory changes
• Major changes in industry technology
• Natural disasters
• Economic downturns
• Market disruptions

Tips for leading through uncertainty

The following tips can help you guide your team through times of uncertainty.

1. Keep your behavior predictable

Uncertain times are naturally unpredictable. You and your team both feel the effects of that unpredictability. Keeping your behavior predictable gives them a little bit of familiarity so they know what to expect. It can ease their concerns and help maintain their trust in you as a leader.

Staying predictable doesn’t mean you have to do everything the same way. You’ll likely need to innovate and change how you do business. However, your core values, behaviors and reactions to situations should remain steady.

Consider being open and transparent with your team. This can help normalize emotions and potentially strengthen bonds. It can also create a more supportive environment where your team feels more connected and reassured, even during challenging times.

2. Confront the situation

While it may be difficult to confront difficult situations, ignoring them could cause you to miss out on growth opportunities. It could also hurt your company’s operations if you’re not willing to adapt to the circumstances.

Lean into the discomfort that comes with unpredictability and leading in times of change. Recognize the emotions that you feel and allow yourself to step back when needed. Then, push forward with difficult conversations and decisions.

3. Communicate with your team

Transparency and consistent communication build trust with your team at any time, but keeping your employees informed is especially important when managing uncertainty. While you don’t have to share everything that you know as the company leader, it’s important to keep the team informed on the basics of what’s happening with the company.

Clear and transparent communication can help keep your teams grounded and in the loop. Without that, they may attempt to fill in the blanks and assume things that aren’t accurate. This uncertainty could reduce employee productivity, affect the company culture and increase employee turnover.

Information to share with the team may include:

• How you plan to get through the uncertain times
• Your reasoning for any changes you make
• Updates when there’s a new development in what’s causing the uncertainty
• Data on how changes you make are working

As you’re sharing information, be careful to be truthful. It’s okay to tell your team that you don’t have all the answers and that you can’t promise them certain things. What you can do is offer them honest information when you have it and when it’s appropriate to share.

4. Strengthen your leadership team

Leaders often feel as if they have to steer the company through difficult times alone. Pull in your leadership team early so you have a strong support system helping you through the situation. Ensure they’re on the same page and ready to lead as a team.

Delegate tasks to your leadership team to help spread out the workload. Working together can also help strengthen your ideas. Other managers might build on your ideas and come up with better solutions.

5. Ask for input

Beyond your leadership team, other experts in the field, your network and the company are potential sources of ideas. Look through your professional network for leaders who have guided a company through a similar situation. Find out what worked for them and how they handled the uncertainty.

Your team members might not be considered industry experts, but they’re well-informed on their jobs and your company. They might surprise you with ideas for pivoting during uncertainty.

You may also consider asking your team for constructive feedback on how to pivot during uncertainty. Ensure the people you invite into the conversation feel comfortable sharing their ideas. Your reaction helps develop this trust and comfort. Collaborating with the team also creates the sense that you’re in this together, which encourages everyone to put in more effort.

6. Lean into company culture and core values

Don’t lose sight of what makes your company unique and strong while leading through uncertainty. Doubling down on your core values helps unite the team around that shared vision. It also helps everyone keep their eyes on what’s most important. Those core values provide consistency during difficult times.

They could even help you move through uncertainty well. For instance, if one of your values is making a difference, you might use uncertain times to use your talents to help others. A core value of innovation can inspire the team to get creative, while values of curiosity and continuous learning might encourage you to explore new concepts to adapt to the times.

7. Look for opportunities in uncertainty

Sometimes, change is an opportunity to try something new. Innovation in business often happens when there’s no other choice.

Pivoting during times of uncertainty can help you uncover new opportunities for your company. For instance, during the pandemic when travel virtually stopped, many travel-related companies pivoted and offered different services that people could utilize at home. Some manufacturing companies switched to producing personal protective equipment, which was useful when PPE was difficult to find.

If uncertainty renders your main product or service less useful, consider how you can apply your core competencies, technology or knowledge in a way that’s useful in the current climate. You could create a new product that continues to be beneficial, even if circumstances go back to normal and you start to ramp up sales of your original products again.

Even if your current lineup still works during the uncertain circumstances, you may need to make changes or add to the options. Embrace new opportunities, whether they’re temporary or permanent, as a way to grow and adapt.

8. Think long term

Uncertain circumstances often require you to make short-term decisions to respond quickly to the changing situation. However, it’s also important to keep your long-term vision in mind while managing uncertainty.

For example, if business suddenly decreases due to the circumstances, you might need to look at making difficult decisions. However, you still need team members to handle the work once you pivot and find a new direction for your company. When circumstances even out and become more predictable, you want to ramp up production quickly, which is easier to do if you still have your team intact. Consider your long-term needs and ensure the decisions you make now support them.

Frequently asked questions about managing uncertainty

Are there benefits to going through times of uncertainty?

Facing uncertainty can force you to increase innovation and create new solutions. The solutions you use for managing uncertainty could help you gain the advantage over competitors during and after the period. You also position yourself as a company that can weather change, which is appealing to investors and prospective employees.

What’s the difference between risk and uncertainty?

Taking risks in business means you have at least some control and can predict the possible outcomes. You know the different variables you’re working with and can calculate probable outcomes. Risk management techniques help you optimize the outcomes. Uncertainty happens when you’re dealing with unknown variables, typically major nationwide or worldwide factors. You can’t easily calculate the possible outcomes or predict what might happen easily, which makes leading in times of change more challenging.