Leading in Times of Crisis

Rachel Payne, an award winning entrepreneur, shares her advice for managing Covid-19.

Photo by Markus Winkler on Unsplash

We are collectively experiencing an upheaval of our economic, political and social foundations. As a global pandemic ravages communities around the world, many entrepreneurs are facing impossible choices and financial uncertainty. As each of us grapple with the upheaval that this moment represents, I would like to offer a few words of guidance for my fellow women entrepreneurs and anyone else trying to navigate this uncertainty.

1. Before my grandmother Vi passed away, I had asked her about her experience growing up in poverty during the Great Depression and any advice that she had. Her words: “In times of scarcity, be generous of heart and spirit.” I offer her wisdom to each of you — while our economy might be contracting, our hearts need not do the same. As entrepreneurs and small businesses struggle to keep their businesses afloat, to make payroll in between funding rounds (which I struggled with time and again in my prior ventures), I encourage you to remember that your greatest asset is your people. Invest in their potential, support their professional growth. If you have to let them go through furlough or layoffs, focus your energies on helping them find their next job. Be a resource for them throughout the process. Be the leader we all need in troubled times.
2. While investment activity in startups may have slowed down for some right now, investing in human capital is a tremendous opportunity for business owners to attain new levels of performance and satisfaction for their people. Remote learning, training opportunities, job rotations, shared responsibilities, new job structures and flexibility — these are examples of a variety of ways to re-organize for growth in the midst of uncertainty. This may not require financial resources but it does require an investment in relationships. I found during difficult times that my customers were also a resource — becoming a partner in helping them through the difficult times and doubling down on the human side, focusing on the relationship (not the transaction), helped give us more space, flexibility or new opportunities we would not have otherwise had. Solve for the potential, don’t try to fix all of the problems. In fact, some things may disappear altogether as we enter a new social and economic paradigm. Some problems are not yours to solve.
3. During difficult times, I would bring my team together and as openly and transparently as I could, I would share the truth of our situation and invite them to help me think through any creative solution that we could muster. Strip everything down to its barest essence: what is the one most important thing we can do together that matters? How might we think differently about how we used to do things? How could we re-organize our entire operation from the bottom up to serve the emergent needs of our customers, partners and stakeholders in this new reality? What is the most valuable service (or offering) that we can provide to help others and ourselves bridge this gap? When 9/11 hit, I was working at an online travel venture (Hotwire), where the majority of our revenue came from airline ticket purchases. Overnight, we went from highly profitable to underwater, leading to massive layoffs and budget cuts. The executive team asked me to lead a special task force to try to figure out how to turn around the situation. With an amazing group of people representing various functions across the company, we came up with a streamlined product offering, focusing on “staying close to home”, “visiting loved ones” and the great “American road trip.” Our car rentals sales climbed and within 30 days, we were at 65% of our prior month’s revenue. It was because of the creativity, collaboration, open-mindedness, resourcefulness, focus and commitment of this team that we were able to find a solution together and eventually, recover completely.

I encourage you to remember that what might seem impossible now is entirely achievable if you set a clear vision, surround yourself with people of shared purpose, create a leadership team that offers strength where you are weak, and a culture that invests in every person’s potential.

Rachel Payne is a technology executive, entrepreneur, investor, inventor and philanthropist. Throughout her career, Rachel has focused on opportunities to utilize technology to create a positive impact for people and the planet. Rachel is Managing Director, Head of Innovation and Technology at FullCycle, a private equity fund that invests in climate solutions.

After earning her Stanford MBA, Rachel joined the founding team of Google.org, the philanthropic arm of Google, focused on Poverty Alleviation and Climate Change, creating the blueprint for a hybrid corporate philanthropy and investment fund. While at Google, Rachel led International Business Operations in Emerging Markets, living and working in sub-Saharan Africa as Country Manager, Africa Leadership Team. She was also Principal, Global Strategic Alliances, managing Google’s important strategic partnerships in Media & Entertainment. In 2012, Rachel left Google to start FEM Inc., a mission-driven holding company.