John Fay MBE, CEO and founder of Cheshire-based change management company, SFL, comments on how company leaders should navigate these uncertain financial times.

Strong leadership is the difference between business failure and success, especially in a challenging market.

This is the obvious, but what does this really mean and what does it mean for you, the leaders of business?

We are all adjusting to the market conditions, its easy for the top tier to do so but is it for the rest of the business? CEOs I speak with are re-aligning their culture rapidly. The majority of employees have not witnessed a downturn before, and CEOs use the term “rabbits in the headlights” when describing people’s reaction to what’s going to be a tough 24 months for us all.

Strategic leadership is about developing a core purpose that resonates with everyone in the business but most importantly with customers. Quite often I meet people and they think leadership is all about motivation, inspiration, getting the best out of people - and yes it is. However, direction setting and the alignment of the people behind a direction is needed before this otherwise we will all set sail in different directions, and that’s expensive.

Honesty and transparency are also needed in abundance as uncertainty will be prevalent among employees. Leaders need to be there for their people and help them through the change in market conditions with straight forward communication.

While headlines speak of doom and gloom, it’s easy for companies to succumb to a spiraling negativity. In challenging times it’s vital organisations focus on getting the best out of people that they want to retain. These are the people who will adapt to the market conditions and remain clearly focused. Strong leaders will be making tough decisions on retention over the coming months

The leadership of a business is pivotal in helping companies get through this turbulent market. Leaders need to set out a clear and compelling vision, be open and honest and inspire their organisations to fight for every piece of business like their lives depended on it.

However, it’s not just about survival, in a difficult market great companies can even grow their market share. This is testament to the strength of leadership as the infectious determination to succeed builds a solid platform for growth.