This afternoon, my colleagues were on-air. Just as the last time, the following is the Q&A for those who are interested. As more and more companies have already completed their restructuring and downsizing, I thought it is apt to share this. Next week it will be on how to manage your Redeployment for better results for which yours truly and a colleague will be on air.
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Imagine that you are leading the rest of your bloodied platoon to safety after a brutal battle. You are marching right upfront scanning the horizon, planning and strategizing. You are exhausted and your mind and body aches with anticipation for what lies ahead but you know you have to lead your men to safety and you are glad they are still with you after all that has happened. You are confident that the men appreciate all that you have done for them despite the high casualty. But, when you look behind…..and you find that less than half of your men are following you. The rest are standing still and digging their feet in the dirt, looking unhappy and undecided. They have put down their weapons and they don’t seem to have any more fire in their bellies. They whisper in each others ears while throwing suspicious glances at you. Imagine if that happens to you as a platoon leader in a war.
That is exactly what is happening in many organizations today and what we suspect is going to happen in many more very soon. Restructuring, downsizing, rightsizing, etc are all relatively easy to execute as they all revolve around the reduction of costs and head count but what is harder to do is to manage effectively those who are still with us to take the company forward. As we have been sharing with your listeners before, the reason a company downsize or restructure is to grow in the future. Now, the future is here or may be just around the corner. The question is, have we readied our people .ie. the survivors for the next cycle of growth and prosperity?
Q : What would be the most basic yet critical thing to do for managers now?
A : Keep the communication open, honest and motivating. In our interview with this station some time ago we shared how a manager should communicate during a downsizing exercise. It is time now to ensure that the communication looks into the future apart from clarifying current worries and issues. By focusing the communication on the future, the remaining employees will get the tacit message that they are needed and they are part of the company’s plans for the future.
Q : But no matter how much a manager communicates, there is still bound to be nagging worries and real or imagined fear right?
A : Yes that's bound to happen. That's why we advise our clients to hold ‘navigating change meetings’ in small groups where any lingering doubts and worries can be cleared in a more personalized manner. Some even call it ‘survivor meetings’! Here is where companies that were proactive enough to plan and execute their downsizing in a humane manner (such as providing outplacement services) will be able to use these as a leverage to show the remaining employees that the company is indeed a caring employer and that those who remain are valued and will be taken care off.
Q: One of the things that people may feel now is that their career is not at all secure….nothing to speak of their career development. What can one do about that?
A : This is where providing career management skills will play its role . Malaysian companies have a generally young work-force. This of course includes the Gen-Y employees for most of whom this would have been their first experience of a severe economic downturn. This is a good time as any to provide them with career management skills so that they are better prepared to take charge of their own career development and don't feel that their lives are derailing right in front of their eyes!
Q : How or what can a manager do to maintain employee motivation now that the major part of restructuring is over?
A : Show employees that they are valuable by taking the time to understand their different motivators. During the immediate aftermath of a downsizing, employees’ motivators will differ. Not all are motivated by stability…although it is easy to imagine that they are all only concerned about their job security. This may not necessarily be the case. Just as in the ‘good’ times, employee motivators are also different now. Some may actually be more worried about their career development opportunity as they can now see that many of the career ‘boxes’ they were aiming at are now eliminated, outsourced or reduced. Some may feel that their work-life balance that they have taken great pains to develop over the years is in jeopardy as now they will be required to take on additional job roles.
Also, Surprise them by sending them for training and self development. You will be sending a clear signal to your people that they are indeed part of your plans for the future and you are willing to continue to invest in them. This is a great motivator by it self.
Q : In terms of getting the people back to speed and productivity, what would be some best practices that you can share?
A : First, Clarify expectations. With all the changes that have happened to the company, it is vital that those who remain have a clear understanding of the things that they need to continue doing, the things that they need to reduce or change and also those that they have to stop doing.
Secondly, Revisit the company’s vision and value system and recommit to it and re-energize it. This will also provide a platform for all to reach an ‘agreement’ on what needs to be done and what kind of new behaviors will be expected out of them.
Finally, Focus on results. Many managers feel that if they focus on results, they will make their teams more stressed and feel more pressured in an already not so pleasant situation. This is not true. Just as in the case of the army, what motivates a soldier is an objective; even when everything seems to be so hopeless. As long as he can see the enemy fort, he will keep moving towards it and the mere act of moving and looking at that fort will give him hope and energy. Similarly, now is the time for the executive leadership team to provide clearly defined goals and targets. No doubt, these goals may be dramatically different than what was contained in the 5 year plan developed in 2005 but the mere action of developing and clarifying new goals and targets will energize and give hope to employees.
Q : And people may end up doing more than they used to or even play unfamiliar roles?
A : Absolutely and that's why it is extremely important to clarify roles. Help people to get comfortable with their new roles. Let me give you an example. Lets say a team supervisor has been retrenched. The team is still intact and somebody from the team may be required to take on the role of team leadership whether officially or unofficially. Now, this person has been thrown into the deep blue ocean whereby he/she is now suddenly in a position to ‘lead’ others who only until a few weeks ago were his/her equals. How fair or logical is it to expect that this individual will ease smoothly into the new role. People need to be trained and re-tooled when ever they are given new roles.
By clarifying new roles and responsibilities, managers can ensure a successful post restructure strategy implementation, ensure the right people are doing the right job, and most importantly ensure an effective structure of responsibilities and accountabilities. Again to use the army as an analogy, no matter what happens, the reporting structure is always alive and kicks in instantaneously.
Q : Its strange really as many may feel that the toughest part is separating employees but here we are struggling to look after those who are still around.
A : Well, Yes and No. Separating employees is tough but only because it is most often done in a haphazard way. Similarly, maintaining the morale of those survivors is indeed difficult but it is made difficult by our matter of fact way of dealing with them. How post restructure people management is executed will determine how engaged the remaining employees are to the company. Right Management research shows that companies with highly engaged employees, have employees who are 50% more productive, enjoy 56% higher customer loyalty are 33% more profitable.
We should not take it for granted that those who survived will thank heir luck start and pull up their sleeves and get back to work. Don't underestimate ‘the survivor guilt’ syndrome. Basically, survivor guilt is a term used to describe the dejected feeling felt by those not affected by a downsizing. They may feel ‘guilty’ that they are the ‘lucky’ ones compared to some of their closest colleagues. Lets understand this clearly. I believe, survivor guilt may happen among the older group of the work force. They have a tendency to have worked together in the same company for many years and hence a sense attachment is developed with co-workers. They may feel downcast seeing their friends and colleagues being retrenched and may wonder whether they really deserve to be in the company. This is not a nice feeling to have and if not handled well will continue to affect morale and productivity. On the other hand, the younger work force may not have such a profound ‘survivor guilt’ syndrome as they are the generation that views all relationships as a means towards and end. It is difficult to say but the existence of ‘survivor guilt’ should not be over looked.
Q : So far we have talked about the role of managers. How about the Executive Leadership team? What should they do to get the entire organization back to productive ways?
A : For one, we believe that they should be visible and accessible. No doubt, this post-restructuring period is one where new strategies are being finalized and new decisions being made. The senior leaders are bound to be busy BUT that is no excuse to stay away from the people at large. They need to be seen and heard. They need to be seen mingling and listening to grouses and suggestions. They need to be heard saying kind and motivating things to those whom will be expected to make all their new strategies bear fruit! Isn’t it an irony then when the senior leaders lock them selves up in board rooms and have no idea of what is going on in the work rooms?
Secondly, they must now quickly institute other cost saving and waste reduction measures. Remember, the reason why a downsizing is carried out is to manage costs and reduce waste. But surely, that is not the ONLY way. So, the senior leaders must set the example by implementing other methods to achieve this too after the head count has been reduced. Otherwise the un-intended message being delivered is that ‘the management just found an easy way out at the expense of the employees’.
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