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Archive for September, 2008

When the Organization is in Turmoil, what should the manager do?

Monday, September 8th, 2008


It is a never-ending saga as each day another firm announces a buyout, a downsizing, a reorganization.  With new accounting rules, companies are often forced to re-examine and restate earnings, trouble for any organization.  Competitive pressures force organizations to continually evaluate strategy and adjust accordingly.  On top of that, the question of management ethics keeps raising its ugly head. 

 

Even when there are no public issues, private problems can proliferate.  Management conflict, demands for better results, cost challenges and a host of problems seem to be far more the norm than in the past.  You know there are problems because the grapevine is working overtime, your boss jumps when the phone rings, new restrictive policies are announced, a hiring freeze is instituted, in fact, it never seems to end.

 

The fact is even though your patch of the world may be efficient and productive and you may be quite sure your work is appreciated, you cannot be over confident.  In these types of situations there is no place to run or to hide.  But, if you are alert to the fact that change is in the air, there are some strategies you can adopt that, at least, increase the odds you will survive.

 

The first and most important piece of advice is: get on with your work, even try to increase your productivity and maintain a confident optimistic attitude (even though you would like to scream).

 

It is a sad fact of corporate life that in times of turmoil managers tend to look for bodies to throw to the lions, even when no official downsizing is taken place.  This “survival of the fittest” can take some nasty turns.  Employees wasting too much time swapping rumors, burning the email and looking outside for jobs via the Internet (which companies can now monitor) can become easy targets in a crisis.

 

Also be cautious about soliciting information from others.  You never know who is entirely trustworthy when the group is on the edge of a crisis.

 

You should move closer to your boss.  When things get tough, expectations can change quickly so establish even better communications.  You want your boss to know what you are doing, and if there is a new direction, you want to know so you can adjust.   Being visible with supervision can also allay suspicion that you are job hunting, checking the grapevine or otherwise improperly engaged.

 

This column has long preached the importance of being positive and this is an especially important time for a confident attitude.  Managers must respond to crisis with an upbeat, make it happen type of outlook.  Let people see your confidence and optimism.  One problem with organization turmoil is the lack of real information and lots of fear, many times totally unfounded.  Some confidence and optimism will go a long way in calming the situation, ease some of the tension among your co-workers and gain appreciation from your boss, who undoubtedly needs some support in keeping operations moving forward.

 

As the situation gets hotter, it is always a good idea to keep your name out of the grapevine, except if you have some successes to share at every level.  Sharing speculations with others is not a good idea.  Unfortunately, too high a profile in tough times can lead to disaster.  That is even true when you want to support someone, your boss, for example.  The best stance is simply refuse to be part of the gossip circuit.  It is a tragic fact of corporate life that performance is only one of the criteria considered during downsizing.  And, in many cases performance may not even be an issue.

 

As a leader you will get dragged into the turmoil, make yourself a source of comfort and empathy.  Let people know you are sympathetic to their concerns, even though you don’t have any real answers.  The point is establish yourself as someone who absorbs the discontent, rather than one who inflames the situation with more rumors and speculation.  Your managers will appreciate this and you will be credited with good leadership capabilities.

 

Be realistic.  Depending on the situation, assuming you will survive may not be realistic.  The controlling agent in a layoff may be someone who has no clue as to who you are and how well you perform.  Sometimes firms draw up a set of criteria and manage layoff decisions through a committee.  That could mean that some of the intangibles that make you successful receive little or no consideration.

 

Or the situation may be such that your projects, your skills and your knowledge, as well as that of your peers, may no longer fit the company.  That may mean if you are seriously concerned about your job, you should consider raising your visibility outside, but carefully.

 

Finally, keep your eyes open.  Focusing on your job should not prevent you from monitoring what is going on throughout the organization.  In fact, there may be new opportunities you may miss by being too focused on surviving.  In summary, keep all options open.