As we come to the end of the year, there is no shortage of economic uncertainty. In conversations I’ve been having with senior leaders recently, all of them spoke about the challenges of finalizing operating plans for 2026—and informing analysts and shareholders about the outlook for their company’s performance.
Even a glance at the recent headlines reveals a complex and confusing picture: Consumer confidence declined to 88.7—the lowest reading since April—while holiday shopping boomed on Black Friday and Cyber Monday. Inflation has cooled, but the annual inflation rate of 3% is still above the Federal Reserve’s target of 2%. As we look toward the upcoming Fed meeting, predictions favor a rate cut of 25 basis points. However, as The Wall Street Journal observed recently, “The coming interest-rate decision by the Federal Reserve could be an unusually close call.”
And that is just the tip of the iceberg of uncertainty. Unemployment reports are delayed and show minimal gains and slow job growth. As a PBS News report observed: “If you’re confused about the economy right now, you’re in good company. Experts are also grappling with conflicting indicators, imperfect data and flashing caution signs.” Then there is the looming affordability crisis, which has been a can kicked down the road for too long. Tariffs, housing, childcare and healthcare, and utilities are impacting the average American’s budget more than ever before.
Given the amount of economic uncertainty, leaders today are dealing with worry, fear, pressure, anxiety, and stress. We are all susceptible to these negative emotions from time to time. But as I have found in more than forty years of my career, values-based leadership—particularly my second principle of a balanced perspective—is a tremendous help. In the spirit of offering support, here are some thoughts on how to mitigate worry, fear, pressure, anxiety, and stress—and move forward with greater confidence.
Read my latest Forbes column: How Values Based Leadership Cuts Through Economic Uncertainty. (See here)
Self-Reflection—Get in Touch with Your Feelings
As readers of my blog know, self-reflection is my foundational principle of values-based leadership. At the end of each day, I spend 15 minutes reflecting on what went well and what didn’t; what I would have done differently; what I will do tomorrow. There’s another component to self-reflection: identifying my feelings.
Self-reflection and self-awareness build our emotional intelligence, or EQ, allowing us to understand emotions, both our own and those of others. We ask ourselves: What am I feeling right now and why?Even this seemingly simple question can provide valuable insights into our emotions, rather than trying to ignore or control them. After all, we cannot lead others unless we first lead ourselves.
A Balanced Perspective—Listening to Others
I’ve written frequently about the importance of a balanced perspective to gather diverse viewpoints on any issue—social, political, or economic—with special attention on opinions that differ from our own. As values-based leaders, we recognize that we do not have the answers nor are we trying to be right. Rather, we’re focused on doing the right thing—and that starts by engaging with others.
The impact of the economy on your organization becomes clearer as you reach out to colleagues in all departments and at all levels. For example, when I was chair and CEO of Baxter International, I not only relied on my executive team, but also engaged with people who were the closest to customers and suppliers for their insights and ideas. Today, I practice this principle by reaching out to people in my network—former classmates, business leaders, people I know socially, and former MBA students.
The pursuit of a balanced perspective provides another benefit. In the midst of challenges and uncertainty, we’re not alone. Others are dealing with the same issues in their organizations, in their communities, and perhaps even in their families. The more we reach out to others for their thoughts and feelings about economic, social, and political issues, the more support we gain and the more empathy we feel. In the words of St. Francis, we are striving to understand, rather than to be understood.
Change is constant, and uncertainty is to be expected. But we don’t have to become overwhelmed. By practicing self-reflection and pursuing a balanced perspective, we can help ourselves and others gain clarity and plan for 2026 with greater confidence.
Header photo by Anne Nygård on Unsplash
