You Can Navigate Harsh Times With A Strong Sense of Direction

 

Just a couple of years ago, a key concern for many businesses in America was how to attract and retain talented associates.

Executives lamented how much it was costing to train good people who were then enticed away by a more attractive job opportunity.

What a difference a couple of years makes. Rather than trying to retain their best people, some companies are laying off thousands of associates. Did all the previously popular advice to empower and motivate associates become obsolete?

Not at all. The advice remains sound. Let's look at these conditions from the perspective of the corporate cultures involved. Many did not hold up under today's challenges. Why?

One reason is that great planning and carefully crafted strategies don't mean much if an organization has lost sight of its direction.

Remember, whether it good or bad times, great organizations:

1. Consistently produce outstanding results.
2. Attract, motivate and retain top talent
3. Adapt appropriately to changing conditions

Strong and adaptive corporate cultures are more important now than ever. These cultures provide a clear and focused sense of direction for the company's associates and customers-even in harsh economic times.

Especially now, cultural leaders must clarify the strategic steps that will propel their companies forward. Any ambiguity about direction subverts the organization's ability to fulfill its purpose and move closer toward its goals.

Layoffs may be inevitable. But some companies fail to clearly communicate to associates why these adjustments are necessary or the logic of how the cuts are being carried out.

Remember, even in hard times, it pays to take care of the culture. For example, some executives, almost in a panic, make arbitrary, across-the-board cuts, then step back to measure the effect. If the situation doesn't dramatically improve right away, they announce more rounds of cuts.

This yo-yo effect leaves associates-your greatest asset-dazed and demoralized. Productivity suffers. Companies assume a "woe is us" attitude. They lose some of their best talent. Associates who remain, who are often pulling double duty, may look for the nearest exit.

What can you minimize the negative effects of layoffs?

  • First of all, be sure to make strategic cuts only in the departments, units, divisions or subcultures where it will make a difference.
  • Don't hamstring your most productive departments or divisions. You will need them to retain their abilities to generate higher returns as the economy improves.

  • If a layoff is unavoidable, make it a single and strategic one, and get past it. Rumors of more impending layoffs can sabotage your recovery.

  • Instill confidence by openly sharing with associates your vision, where you want to take the company and their role in helping the company get there.
  • Begin a process of cultural renewal, making sure to include associates from every subculture in the planning of future goals.

  • Provide frequent and helpful feedback to your associates and your customers on how the company is doing, so that there are few surprises.

  • If you haven't already, make sure you have in place realistic measurements and rewards that clearly communicate to associates how their performance contributes to the organization's ongoing success.

No way around it, layoffs can foment mistrust. But companies that are honest with their associates and communicate openly with them about the direction they are headed have the best chance to regain that trust.









 

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