Strategic Portfolio Management

Rebuilding trust and motivation in uncertain times

22/08/2025

We are living in a period of profound uncertainty. War, the climate crisis, and political division, such as Trump’s positions on NATO, trade, and energy, dominate the global agenda.
For many business leaders, this uncertainty is unsettling. Strategic plans often do not account for such volatility, and may suddenly feel unrealistic. A common response is to create scenarios to prepare for different outcomes. While this can be valuable, it keeps leaders operating only at the strategic level and risks overlooking a critical success factor: people.

The human cost of uncertainty

Uncertainty is not only a strategic challenge; it also has a significant human impact that should not be underestimated.

Employees rely on structure, security, and a clear sense of direction. When these are missing, stress increases, motivation drops, resistance to change rises, and engagement suffers. The result is lower productivity, less innovation, and weaker business performance.

Research from VOKA shows that employees are already feeling the effects:

1 in 3 larger companies (over 250 employees) is using temporary unemployment schemes.
1 in 4 larger companies is considering a restructuring in the next six months.

These developments present a challenging outlook for the months ahead. In times like these, the way leaders engage with their teams can make a significant difference.

Restoring trust and energy

To counter the human effects of uncertainty, leaders should focus on rebuilding trust and re-energising their teams. This begins with creating psychological safety and communicating with clarity and transparency. Employees need an environment where they feel safe to share concerns and ideas.

Making progress visible is equally important. Showing the impact of people’s efforts and providing regular updates helps keep teams motivated and aligned. Clear objectives give employees a sense of direction, strengthening both engagement and resilience in difficult times.

The importance of psychological safety

Psychological safety is the foundation of a resilient, high-performing team. It refers to a workplace where people feel able to speak up, take calculated risks, and learn from mistakes without fear of negative consequences. Leaders can strengthen psychological safety by:

Encouraging open communication: Build a culture where team members feel comfortable sharing ideas and concerns. This openness supports better problem-solving and fosters innovation.
Valuing contributions: Recognise and appreciate input from all team members, regardless of their role or seniority. Recognition builds trust and encourages active participation.
Supporting risk-taking: Promote experimentation and treat setbacks as opportunities to learn. This mindset helps teams adapt more quickly and develop creative solutions to challenges.

Practical takeaways

Here are three leadership behaviours that strengthen trust in challenging times:

Deliver a consistent message: Keep communication clear, consistent, and aligned with organisational values and objectives. This reduces uncertainty and provides a stable foundation for decision-making.
Celebrate small wins: Acknowledge and celebrate incremental successes to maintain momentum and raise morale. Even in difficult circumstances, progress should be recognised.
Involve teams in decision-making: Engage teams in exploring options and shaping solutions. Involvement builds a sense of ownership and strengthens commitment to the organisation’s direction.

Conclusion: Building resilience through people

Resilience is not just about budgets and strategic objectives. It is about people having confidence in the mission, even when the way forward is unclear.

By focusing on clear communication, celebrating progress, involving teams in decisions, and fostering psychological safety, leaders can rebuild trust and energy and guide their organisations through uncertainty with renewed strength and purpose.