This is the second in my quarterly "Leaders in Action" series, in which I profile leaders who are courageously--and effectively--leading their companies through uncharted waters. Providing hope and inspiration when both are hard to find is one of the greatest challenges a leader faces. All leaders need mentors, and these real stories offer ideas, tools and optimism for all of us.

For this piece, I interviewed Greg Stock, a leader with whom I have plenty of shared experience. He's executive vice president and general manager for a large division of the Chicago-based technology company Trustwave, with oversight of nearly 150 employees. Stock came to Trustwave earlier this year when the company acquired Mirage Networks, which he ran as CEO. It was one of the few successful technology acquisitions during that period and, given the market conditions, provided a challenging environment to navigate.

My experience with Stock goes back to 2000, when he hired my former firm to help market a small technology company where he was a vice president, and to position it to go public. That firm, which was successfully listed on the NASDAQ in 2001, was one of only a few IPOs during the entire year. Again, not an easy ride.

I've worked as a consulting partner with Stock at three companies, and I've always admired the loyalty he creates in his teams and the passion he brings to his work. I've seen people work harder for Stock than they thought possible, and do it with joy. I've seen people pick up and move across the country to work for him, and then follow him again. And I've seen him excel in many difficult situations where most people would either walk away or bide their time. I asked him to share some of his secrets with our readers.

You've led companies and teams through some difficult situations--market downturns, radical industry changes, management shifts. What have you discovered that keeps people motivated? In good times or in bad, setting the right objectives and communicating at the right cadence are key to keeping people motivated. I've found that when a company is under serious stress, employees need the clearest of objectives and more information, delivered at a greater frequency than when things are going well. To keep people in the game, you must reset expectations on potential outcomes and stress the value of finishing what you started. I rely on finding the unique and individual stickiness to keep people in the company. Even when the grass is brown everywhere, it always appears greener on the other side. You need to remind people of that reality.

Before it was acquired, I vowed to get my company self-sufficient and refused additional venture capital despite brutally challenging market conditions. It was a risky bet and required serious sacrifices from everyone. I was more specific than ever before on performance metrics and expectations. And as for the cadence of communication, I conducted huddles for the whole company, worldwide, for 10 to 15 minutes three times a week to share information and answer questions. Even though attendance was optional, 95 percent of the company showed up or called in for the huddles. It was a key part of the cohesion needed to hold everything together.

How would you describe your communication style? I would describe it as over-communication. I try to be honest and real and put the truth out there.

In bad times, you need to do a lot more career coaching. I make sure people know the reward for sticking it out and finishing the job. In bad economies, most of the ships are going in the same direction. All that is in our control is to ensure that our ship is running faster and more efficiently that the others. While it may feel good to jump to the next thing, it's often best to double down where you are. With that said, I'll be honest with people. If someone comes up with an opportunity and it's a progression for them, I'll likely encourage them to take it.

Why do you think you inspire such loyalty from those around you? I truly feel responsible for creating a terrific and successful environment for employees, customers, partners and shareholders. I really do work for them.

I have a healthy respect for the balance people need in their lives. I give couch time to employees to listen to their life aspirations, as well as their personal situations. I encourage people to do what they need to do to take care of things outside of work. Because they know they can take care of things when they need to, it allows me to be more demanding inside. It's not one-dimensional. I expect them to be healthy, to take care of their families and to work hard. I try to keep balance in my own life as well, but I don't expect people to match my particular formula. I try to keep things in perspective and maintain a healthy sense of humor. I still enjoy a good prank or two on occasion and never take myself too seriously.

For me, it's all about the team victory. I don't try to take anything extra for myself. Whatever I get, we all share. For me, it is more about the team photo with the trophy than it is about my bank account. I surround myself in my office with team photos of previous business seasons. I spend time envisioning how the next team photo is going to be and the emotions that will be captured. That's what gets me up in the morning--to see how I can make a difference in other people's lives.

People understand I am high-energy and fast-paced. I demand winning, and in the right way, ethically. And I believe you must predict how you'll win and win as predicted.

How do you create high-performing teams? I like a challenge, especially projects that require cross-functional cooperation. I often take situations that most companies would take weeks to solve and turn them into a 24-hour project. It is truly amazing what can get done in a single day if that is all the time you have! And I am confident that we get to no worse than a 90 percent solution in those 24 hours.

I believe in some of the standard stuff, like turning C players to B's and feeding the A's. Give the A's the light and water they need. There is a point where people lack talent, but you can always make a C a B or a B an A. Where I would offer caution is on the initial grading, which is often provided by others.

I've taken over positions where someone on the team was set up as a fall guy for a problem and I was instructed to move on, as there was no hope. After investigating, I saw that it wasn't the person's fault but a design flaw--he was set up to fail. He wasn't managed properly, he didn't understand his objectives and was treated poorly. After a couple of meetings, clear objectives and some encouragement, he became a rising star in the company. I also had a guy come to me once after a company meeting where we had the guts to predict exactly how we were going to win. He was so encouraged; he came to my office after the meeting and told me he just decided to lose 50 pounds and ... a few months later he had done it. Nothing I could ever do in business could have made me happier.

From the start, I ask people where they are trying to get to in life. If this job was just about business, I'd be bored. I tried to take what I loved about being in sports and music-- two of my passions--and apply them to business.

Clearly the people part is key. How else do you cultivate performance? I'm very data-driven. I set numbers and hit them. I like to raise the bar for everyone. People always want to shift dates on what's delivered. I set the stage. Being late is not an option. If things are late, then they just get later. I don't change due dates--if you commit, it stays there forever. That said, in meetings I focus on the positives. We laugh at the mistakes (the first time), and I don't kill people. It's embarrassing enough that people see they are late. I don't need to rub their noses in it. I keep a sense of humor.

The CEO has to encourage others to study and learn from everyone's weekly reports. Sharing them well before the weekly meeting is key. I support transparency and team building. The CEO can never be the bottleneck of the company. He can't be the one to wait for decisions to be made.

How do you stay on top of things in your organization? I try to be everywhere without micromanaging--a delicate balance. I look for potential employee departures months in advance and try to open up that communication early. I try to get it out on the table so people don't have to hide it. It may seem like opening up a can of worms, but it allows people to trust me. I let people know my insecurities and weaknesses, too. I think leaders should show vulnerability.

Reality and skepticism, even from the CEO, are also tools I find to be effective. If I was always the guy saying "this is so great" while we miss our numbers, that's when you lose people. I've had to let trusted executives interview for other jobs while I bit my nails, and then try to coach them to do what is best for them, even if it hurt me.

What advice would you give all the companies out there that are struggling? Double down your efforts where you are. If you need to take action, first protect your customers and partners. Second, get self-sufficient as soon as possible. You may have to cut employees, so communicate reality early. Third, focus on what you do best. Take another look at that grandiose vision that got you the last round of funding and consider shaving it down to grab the low-hanging fruit faster than ever before. You may need to focus on a particular vertical or position yourself in a niche to reduce competitive threats.

We had a lot of ups and down in the past two years. In the end we built a highly focused, self-sufficient business, got acquired and exceeded expectations. We haven't lost a single employee since being acquired. Our team's options are worth a lot, and there's great potential for everyone.