Tweet

Re-Engaging the Workforce - How to Clean Up After the Economic Storm

Written by: Chris Majer

Article Overview: As we start to make our way out of the depression/recession many companies are finding that their most critical asset, their workforce is MIA. The rash of downsizings, furloughs, and decreasing financial performance has left employees stunned, distrustful, and cynical. More typical HR offerings will do no good and hoping everything will work out on its own is a non-starter. You can't ignore it, you can't pretend it doesn't exist and that you don't know what to do doesn't mean you do nothing! This is a time when new bold action is required and the longer you wait the more difficult the challenge. Here is what to do to get your people back on board with you.

Re-Engaging the Workforce - How to Clean Up After the Economic Storm

Re-engaging the workforce

How to clean up after the economic storm

We have all seen the footage dozens of times. The hurricane comes ashore and leaves a path of total devastation in its wake. The next morning the survivors look around in stunned silence at piles of debris that were once homes and communities. They seem a bit dazed and at a loss for where to start the rebuilding as they have not just lost their homes but their sense of purpose as well. For a while they fall into a story that can best be summarized as, “If life is this uncertain what’s the point?” It takes some time and outside assistance but most people get back on track and in short order we watch as leaders emerge, communities are rebuilt and life goes on.

Much of corporate America is now facing the same situation. The economic hurricane hit last year and seems to have passed. Executives and managers across the land are now waking up to ‘the next morning’ and are looking at the devastation that has swept through their companies. Millions of people have lost their jobs, production and productivity have fallen off, and what were once proud executive teams have been humbled as they found their financial and analytical skills no match for the extraordinary leadership challenges they confronted. The question that is facing American business is simple, how do we get our people re-engaged and rebuild our productivity, innovation, purpose and pride?

The first step is that we need to be clear about what we are up against. The dilemma we face is that our mess was not caused by a natural disaster; that would make things much simpler. Instead our disaster was self –inflicted. This means that the fundamental challenge managers are facing is how to rebuild trust in their organizations. People don’t trust corporate leaders as they are perceived as the ones that didn’t see the disaster coming and to make up for their lapses ordered the mass lay-offs that devastated their divisions, departments, and teams. Employees will say that they understand the necessity for these moves but that is largely because they know that is what management wants to hear.

Underneath the veneer of understanding there is a deep current of resentment running through many organizations. If left unchecked distrust and resentment will soon fester into cynicism and resignation, both of which are devastating to an organization.

These are extraordinary times and extraordinary actions are required if we are going to make our way forward. To be as clear as I can, this is no time for some typical timid corporate ‘engagement’ program. Traditional incremental approaches will only make things worse. Instead let me point to three distinct powerful actions that can be taken to get your organization moving again.

1. Craft A New Powerful Leadership Narrative

In my view a real leader only has two fundamental responsibilities in an organization. He is the guardian of the mood and the architect of the future. The main issue we are facing has to do with the mood in most organizations. To be clear a mood is the pervasive conversation that people are living in about their future. The adage we use with all of our executive and management clients is simple, “Mood is everything. It isn’t the only thing but it is everything because if you don’t get this right nothing else you do is going to matter.” This is a big departure from traditional management theory and that is exactly what we need and why it is so powerful. Distrust, resentment, resignation, and cynicism are not moods that generate success and they won’t be affected by edicts, memos, analysis, or motivational pabulum. Instead leaders must quickly and effectively learn to ‘manage the mood ‘ in their organizations. In the short term this means they need to begin by getting people back in touch with the fundamental purpose of the organization, what you stand for and where the company is going. They need to construct a new more powerful leadership narrative about the future.

A new powerful leadership narrative needs to acknowledge the depth of the moments issues, point to the ways the company has overcome adversity in the past, focus on charting a new course forward, and declare a new unwavering commitment to a new future. This commitment must then be immediately followed by action. New bold action the clearly demonstrates that the company is moving forward, investing in its people, and serious about putting the disaster behind and moving forward.

2. Get Outside Help

Every company has their own version of the old adage, “People are our most important asset.” It may show up as core value statements that point to respect, honor, and care about people or visions that talk about valuing each individual and the company’s commitment to their “family” of employees. In none of the statements will you ever find any fine print that says, “Except when things get tough.”

Everyone knows that the promise of long-term employment is a relic of the past yet most were not prepared for the wholesale decimation that has been visited on many companies and how quickly executives were willing to show that the visions, values, and creeds were merely hollow slogans. The net effect is as noted above, trust, which is the foundation for every organization, has been broken and must be re-established. Ignoring the situation, pretending it isn’t a crucial issue, or living in a story that, ‘If we just give it time things will sort themselves out,’ is a non-starter. That you don’t know what to do doesn’t mean you don’t do anything.

To move forward will require bold steps and in this case most likely outside help. That isn’t always the case so why now? Because what you are working with is distrust and it is focused on company management. It isn’t going to work to have the same HR team that just got through managing massive lay-offs turn around and deploy a program designed to rebuild trust. The same managers and executives that missed the signs of the coming storm or panicked in the face of it and ordered across the boards lay-offs are not going to have instant credibility. Yes, they need to craft a new powerful leadership narrative but it is going to be important to bring in outside help to demonstrate that the company is serious about a new future and lend credibility to the effort.

3. Its time for transformation!

If there is one bright spot in all of this it is that the current meltdown opens the possibility of finally turning our back on the tired management practices of the past and truly transforming our organizations. Most of what we call “contemporary management practices’ were developed during WWII when the entire economy was built on manufacturing and agriculture. In those days what we managed were people’s activities as that is what generated value.

Since then the very nature of work and the workforce itself have changed dramatically. Today the value generators in any organization are not the production workers but the tacit or knowledge workers. These are people who have a body of competence and know how to work together to solve problems, manage projects, and generate customer satisfaction, innovation, and value. We aren’t interested in their activities, what matters are the results that they generate.

What we have largely done since WWII is add technology to the same old practices so that we can now do a number of things that are either irrelevant or annoying to contemporary workers but we can do them really fast. In the aftermath of our economic hurricane many organizations are now faced with the dilemma of needing to get the same amount of work done but with far fewer resources.

This is the perfect moment to transform our organizations by introducing the new practices of Commitment Based Management. The basic principles of it are simple. Instead of seeing work as a set of activities that need to be supervised, see it as a set of nested commitments. Whenever someone says to someone else that they will produce a specific result by some specific point in time they have made a commitment. If you consider that every day thousands and thousands of these commitments are made and completed as the fundamental element of what we now call work, then you can see that power derives from learning the practices of effectively and consistently making, fulfilling, managing, and tracking this network of commitments, not the inventory of activities.

Thinking strategically about the company and your projects, consistently generating innovations, and doing what you say you are going to do when you say you’ll do it do not happen by handing down orders, building consensus, coming up with diagrams of processes, or reorganizing. Instead they require the construction of a new culture in which people live the underlying values of accountability, trust and commitment, embody new effective leadership and management skills, and hold a deep commitment to a new way of working. If there was ever a time when there was an opening to build new organizational cultures this is it. Let’s not miss opportunity by attempting to reassemble the same old organizational and management structures. This is a time to be bold, transform our organizations, and build new futures.

Related Articles
  All storms are perfect
  What makes a word a seed
  There is a Storm Brewing - A Labor Storm
  My Own Personal Storm
  The Storm We Know

Article Tags: center span, debris, dozens, economic storm, hurricane, nbsp, next morning, piles, rsquo, sense of purpose, span style, stunned silence, style font, style text, survivors, text decoration, total devastation, workforce



Related Forum Posts
Re: Basic HTML splash pages... - I agree David, Clean and crisp. Nothing hypy which instills confidence IMO. A complete contrast to flash and splash. Cheers, Zac
Re: Franchise of a popular call center - If you have knowledge in running a call center and know how to manage it effectively then it sounds like it’s a good business for you. Workforce management relates to employee matters like payroll, HR, and employee training. Knowledge management relates to research, strategies, innovations and the effective use of technology. In both cases your prime clients are corporate sectors especially those who want to reduce their cost and increase performance at all levels.
Re: Basic HTML splash pages... - They both look nice. Clean and simple without all the flashy nonsense we see so much. The only downside for me was the audio on the 2nd one. I personally try to steer clear of using audio. I also keep my computer muted while surfing exchanges for that very reason.
Commercial cleaning - [quote:2zma5fer]Recently she started a commercial cleaning business. [/quote:2zma5fer] Well... why not take advantage of the fact that it's your Mom's business? Take advantage of the cliche of mother's cleaning (although is the cliche the mothers-in-law who clean, thanks to Everyone Loves Raymond). Why not Psycho Mom's Cleaners or Clean Enough For Mom. Although admittedly that doesnt sound quite as professional as the two names you've advanced. Cute and memorable, vs professional and lost amongst others....
Re: Are Economic Recessions Good for Franchising? - well, I can't give you any verified stats at the moment. But, it's a fact that as more and more people face layoffs they look in the direction of franchising. These are folks that need the security of a proven business model and have resources to jump into a franchise. It's a clear trend that has been witnessed in past recessions. My concern is that we are not in a simple recession... If you look at a recession as a big storm that will create some havoc and disrupt lives, then the events we're facing in the near future could be a supersized hurricane. We're heading into uncharted waters. High fuel costs, which will probably fluctuate for a while then jump again High debt loads... now in the trillions Sinking housing market... how low will it go? The US war machine is in full swing... with eyes on IRAN All of these factors are clashing to create the Perfect Storm and I don't like it one bit. I tell ya, there's a bunch of madmen at the helm. So how does this bode for franchising? jeez... I don't know... I'm gonna get myself a double scotch on the rocks. Cheers.


Share this article with your friends. Fund someone's dream.

Leave a comment below or share on the left and you'll help support entrepreneurs in Africa through our partnership with Kiva. Over $50,000 raised and counting - Please keep sharing! Learn more.

Tweet

Newsletter

Get advice & tips from famous business
owners, new articles by entrepreneur
experts, my latest website updates, &
special sneak peaks at what's to come!

Name:
Email:

Popular Articles

Effective Leadership

What Type of Business Should I Start?

Business Coach Explains To You How To Add Value

Suggestions

Email us your ideas on how to make our
website more valuable! Thank you Sharon
from Toronto Salsa Lessons / Classes for
your suggestions to make the newsletter
look like the website and profile younger
entrepreneurs like Jennifer Lopez.