Archive for February, 2009

The Real Challenge Comes After The Layoffs

You never considered that you’d be in the position to have to lay off employees.  With rare exception, your employees have been loyal and hardworking.  Some of them have been with you so long, you can’t recall when they weren’t there.  And now…now you have no choice.  You have to lay off some of them.  And, you know, that the words “lay off” are not really the right words, because you know that…they won’t be back.

You blame yourself for letting things get to this point.  “I should have fixed our problems when they first appeared,” you say.  That, coupled with this economic perfect storm, and there are no alternatives other than closing up altogether.  If the company is going to survive at all, you have to do this.  You’ve put names on a list and you’ve looked at that list a hundred times trying to find another way.  Now it’s time.  You’ve decided to have an all-employee meeting first to announce the layoffs and then meet with the affected employees.  You don’t know if that’s the right order for these steps, but it makes sense to you.

After the all-employee announcement, you meet with the affected employees one at a time.  You could have assigned this dreadful task to your supervisors, but you knew that wasn’t the right thing to do.  As you meet with each employee you are struck by the differences in their reactions.  Some are numb and in shock.  Some are angry.  One comes close to attacking you.  Some fight back tears.  Others cry.  One sobs.  And, shockingly, two of them apologize to you because they feel bad that you have to do this. 

It’s done.  Now what?  You haven’t given much thought to what to do after the layoffs because your entire focus has been on that dreadful day.  Now what?

After the layoffs the mood has changed significantly, but you find it difficult to describe.  You realize that some employees avoid eye contact with you hoping you won’t call them into your office next.  Others are still in shock.  A few more are angry.  All of them have unanswered questions.  “Wait a minute, that’s it!,” you exclaim.  They have unanswered questions and now you know what to do.  So you make a plan.  It’s called BLACX3 (pronounced Black X 3)

• First you realize that you need to help your remaining employees see the (B) big picture.  You talk about why the layoffs were necessary from a business and financial point of view.  You also help the remaining employees grieve losing their co-workers and friends.  You help them see the big picture.
• Second, by observing your employees you suddenly realize that they are…(L) lost.  They have lost their way because their predictable, stable world has been wrecked by a tornado.  Some of them also feel guilty for keeping their jobs.  The key is to focus them on what to do now.  They know all the things that need to be done, but they are lost and they don’t know what to do now.  Give them direction and guidance and help them find their way back.
• Next, help employees (A) adapt.  Help employees deal with all the changes.  Not only the changes made by laying off employees, but all the changes caused by the layoffs that are now rippling through the organization.  Procedures and processes are being changed because some of the people in the procedures and processes are gone.  Change is everywhere and it feels like a different rollercoaster ride every day.  Help them adapt by working side by side with them to make the changes that are necessary.
• Finally, CX3.  Communicate, Communicate and Communicate.  Employees will go through a predictable series of steps as they restore themselves to full productivity.  The key is to listen to the questions that are nagging at them.  Help them ask those questions and work to answer those questions one at a time.  When they finally accept your answer to that question, they’ll move on to other questions.  Be patient and stick with them, one step at a time. 

What you are dealing with is the predictable human psychology process of adapting to change.  If you, one day, in your frustration, snap at the 12th question on the same topic and yell, “Shut up and go back to work,” restoring the productivity of that employee will be almost impossible.  Your employee may become frozen and stuck in the change process.

The hope is that all employees will move through the change process and be restored to full productivity.  Honestly, it’s likely that not all of them will make it.  As time consuming and “touchy-feely” as this process sounds, it’s your best route to restoring the company’s financial performance. 

As incomprehensible as it may seem to think about layoffs and cut backs, don’t forget to give thought and preparation to the real challenges that lie ahead after the layoffs.  The future of your company depends on it.

2 Strategies To Reduce The Impact of Economic News on Business Decisions

The Dow Jones Industrials Average is down again.  Gas prices are up.  Unemployment is well above expectations yet again this month and layoffs keep coming.  It’s a wonder anyone can sleep.  And, the bad news keeps coming. 

How should we as business owners react?   The more alarming question is to ask how the bad news is impacting decisions that employees are making in your organization on your behalf.  There are many things you could do, but here are 2 high priority organizational behavior strategies to reduce the impact of bad economic news on employees and the business decisions that they are making on behalf of your company.

Expect The Economy To Get Really Bad

This is not just a psychological exercise to reduce stress.  Instead, if you really expect the economy to get really bad, then establish a plan for how you will react and the steps you will take as the economy gets worse.  Then, the news you hear daily simply reinforces the premise and the plan you’ve had all along.  Otherwise, this is a vicious downward cycle.  Break your own downward cycle and help your employees do the same.
 
When confronted with fearful news and/or events, the human brain may kick in the basal instincts of FIGHT or FLIGHT responses.  When that happens, the ability to reason and calculate a response is gone.  The FIGHT or FLIGHT response takes over and every piece of bad news just makes it worse.

Expect the economy to get really bad and, at some point, you’ll be wrong when things actually start getting better.

Resist Short Term Thinking

In short, don’t overreact.  While you may be faced with some really difficult decisions because economic conditions have changed the rules of your game, don’t think only short-term. 

For example, instead of laying off your customer service people, can they, for a period of time, be offered to your larger customers whom they serve every day?  Large companies may be laying off permanent employees, but they may welcome your already trained people under a contract arrangement.

Resist short term thinking and look for opportunities to preserve and proactively build your business.

In summary, apply these two strategies and you’ll achieve better results than would otherwise be possible in this economic recession.