Why Good Leaders Love Economic Friction

Alright, maybe love is too strong a word. Few leaders enjoy operating in a climate of tighter budgets, slower growth and difficult decisions. But economic friction, for all its discomfort, has a way of sharpening us. It brings our focus back to what matters right now, while reminding us to keep one eye on the horizon.

In times like these, leadership flex becomes the difference between surviving and progressing. When costs are scrutinised and teams feel the strain, the role of a leader is not only to manage performance, but to steady the collective mindset. The friction forces us to prioritise, to rethink where value really lies, and to find creativity in constraint.

I often ask my teams a simple question: what’s one thing you’ve done differently as a result of this friction? The answers are always revealing. People talk about clearer communication, re-allocating budget, better use of time, closer collaboration, and even rediscovering a sense of purpose in the challenge itself.

That’s the hidden opportunity inside the slowdown. Growth doesn’t just come from profit; it comes in the form of the adaptability of your people, the strength of your culture, and the honesty of those conversations.

Clearly no one’s cheering for economic friction, but good leaders recognise it for what it is. It’s a moment that tests and strengthens the system. The best of us flex, listen harder, and help our teams see the progress they’re making, even when the numbers don’t.

And if all you do this week is pause a team meeting to celebrate that flex, to notice how people are adapting and learning through the pressure, you’ll have led them through and recognised what they’re doing well, despite the fact the bottom line might be doom and gloom.

Think about it, though. That’s the kind of growth that carries organisations forward, long after the economy steadies again.