Meet our expert: Dane Jensen, CEO

Dane Jensen is an expert in leadership and performance under pressure. He is an acclaimed speaker, an instructor at Queen’s University and the University of North Carolina, is a regular contributor to Harvard Business Review, and is the author of The Power of Pressure: Why Pressure Isn’t the Problem, It’s the Solution. Alongside his corporate work, Dane serves on the Board of the Canadian Paralympic Committee.

“Our organization recently announced 5% across-the-board budget cuts. The CEO indicated that there will be further, deeper cuts coming over the next couple of years – but there is no information about when they will come, who they will affect, or how deep they will be. How do I keep people motivated with all this uncertainty?”

First and foremost – this is a very difficult situation. It’s one thing to deal with cuts, but another entirely to have future cuts hanging over the business like the sword of Damocles.

Research out of University College London showed that the body exhibits significantly higher levels of physical stress – high cortisol, muscle tension, etc. – when there is a 50% chance of receiving pain (an electric shock in the case of the experiment) vs a 100% chance. When we need to live with this stress over a prolonged period it can be very draining.

While there is no easy answer here, there are a few strategies that can help:

01. Acknowledge reality

While it might seem counter-intuitive, it is important to sit with the team and acknowledge the danger rather than ignoring or dismissing it. The Stoics advocated a technique called ‘negative visualization’ in which we play out potential negative outcomes in advance to rob them of their power to create irrational distress. It is far better to work as a group and process reality– “what are the scenarios we are most worried about here? How would the cuts play out? What would it mean for us?” – than to have members of the team playing their own disaster movies in their heads at night on repeat.

02. Keep attention focused on controllables

With reality on the table, the most helpful thing a leader can do is to keep the team’s attention focused on what is within their control. Helplessness is at the root of the negative impact of stress, and the goal here is to feed a sense of agency. There are two parts to this discussion: ‘where can we act to influence how this plays out?’ and ‘what is out of our control that we need to let go of?’ Clarity on what we are not going to focus on is as important as clarity on where we do want to focus.

03. Help people find a reason to commit

Motivation is energy, and energy comes from having a good answer to the question ‘why am I doing this?’. For people to lean in and commit they need to be able to answer at least one of two questions:

  • Can this serve a purpose in my growth?
  • How will my effort make a difference for others?

Helping each person on the team clear a line of sight to how this period could help strengthen or develop them, and how their efforts will contribute to others, is a very valuable use of a leader’s time.

Through it all, the leader’s job is to help people focus their attention productively: to avoid the night-time doom loops by surfacing and processing fears head-on, identifying the things that are a waste of time and attention and redirecting to controllables, and helping people surface and clarify what makes devoting effort to the team’s goals a meaningful use of their energy.

Good luck to you – it is not an easy situation you find yourself in, but it is also in these periods that we build leadership muscle. Connecting with how this will serve a purpose in your growth, and recognizing that your effort will make a huge difference to your team is just as important as how you help your team frame it.

 

Key Takeaways:

  • Uncertainty is often more stressful than bad news. Leaders must recognize that ambiguity itself is the pressure their teams are experiencing.

  • Name the reality instead of avoiding it. Shared clarity reduces unnecessary psychological strain.

  • Direct attention to what can be controlled. Leaders build resilience by clearly separating what the team can influence from what must be let go.

  • Connect effort to purpose. A clear “why” sustains commitment when circumstances are uncertain.

  • Leadership is attention management under pressure. The role of the leader is to channel energy toward meaningful action.