One side of leadership that has its own importance is how you manage during the bad times.  Everyone can smile when things are going well, but the true mark of your leadership is how you respond during times of crises.  Jack and Suzy Welch offer 4 points for leading during tough times (BusinessWeek, Oct. 13, 2008).  Those points:

1. Plan as if the downturn will be longer and harsher than you think.  Timidity is risky in a rocky environment, therefore, be aggressive in the moves you make to protect the organization.  If the economy tanks, you'll be one of the few prepared.  If it doesn't, you are then leveraged for a bigger upside.
2. Don't stop talking.  Crises management calls for constant and candid communication.  Do not lock yourself in your office and avoid your people.  Now more than ever they need to have their fears alleviated.  Not with rosy and unrealistic outlooks, but with true, fact-based assessments.
3. Energize your people with a second-half hang-tough bonus plan.  As it becomes obvious that annual goals are beyond reach, people throw in the towel.  Develop and announce a revised plan for the second half to keep people focused.  Especially make sure your top performers know you will reward their efforts.
4. Do everything you can to buy or bury your opposition.  This is the opportunity to make bold moves.  Extend generous credit terms to customers, lure your competitors best talent, etc...