Situation:
Mark is the Director of Marketing for the LeMere Publishing Company, a position he has held for about one year. He has been an employee of LeMere since graduating from college 20 years ago, and is well known and well liked throughout the Company. His department has 7 employees all of whom have worked with Mark in the past.
Mark and other department heads recently met with the President of the Company and were informed that the economy has adversely affected the publishing business and there will be budget cuts and layoffs. It is uncertain to what extent or precisely how his department will be affected. This information must remain confidential. This news comes at an especially difficult time for Mark because his team has been outstanding in achieving its goals and contributing to the Company’s bottom line. Mark had planned a celebration dinner at a very nice restaurant for the Marketing Department employees. He learned in the meeting with the President that the date of the celebration is the day before the President announces the budget cuts and staff layoffs! His employees are feeling very good about their accomplishments and looking forward to the celebration dinner.
Mark has the trust of his employees and doesn’t want to do anything to destroy it. However, circumstances in the Company have changed and a business as usual approach seems out of touch with reality. A celebration just before employees receive life altering news about their jobs feels almost cruel.
What should Mark do?
Ki ThoughtBridge Counsel:
There are many executives and managers in Mark’s position. They struggle with how to recognize and reinforce excellent performance during a time of economic upheaval and the threat of job loss. The following are some options:
- It’s important for Mark to engage in his own inner work before meeting with his staff or the President. Those who work closely together can tell when something isn’t being said, or when the whole truth is being bent. If staff can detect their leader’s anxiety and conflicting feelings without receiving some plausible explanation about them, speculation will begin to infiltrate the communication, generating more angst and fear of a possible “worst-case scenario” occurring. So the leader has to deal with their own emotions before they can deal effectively with those of the followers.
- Mark can tell the truth without breaching confidentiality. He can meet with his staff and say that the dinner planned needs to be changed to a different date because it is now just the day before the all Company meeting. He wants an evening during which they can devote time to celebration without having to prepare for a big meeting.
- Mark can meet individually with the President and review his department’s outstanding performance while also acknowledging the economic realities the Company must face if it is to remain viable. He can be an effective advocate for his employees and make a strong case for keeping them at the Company in an equivalent capacity.
- Mark can provide his employees with current data about major changes occurring in their industry and discuss the Company’s response. With the approval of the Company President he can engage employees in a conversation about how they think the Company should respond. This will involve the employees in a more meaningful way than indicated at this point. The process will feel a bit top/down without input of employees. Most employees can deal with adversity if their employer is open, honest and fair. Most will stick with it if they aren’t kept in the dark about the financial conditions the Company is facing.
- Reschedule the celebration dinner after the President’s announcement. Mark will need to meet with his employees right after the all company meeting and explain what the changes mean for all of them and deal with the varying reactions and trajectories of grieving. He can let them know again how valuable they have been to him and are to the Company at that time, which is exactly what employees need to hear at moments like these. Mark can let them know how much he and the Company appreciate them (if it is true) and value their high standards for work, and how much he will work to retain their positions and/or help them obtain the equivalent. He will need to be honest about what he doesn’t know and admit that there are limits to what he will be able to do. Regardless, he will remain accessible and open to questions and concerns.
- Mark can let his staff know how he plans to keep them well informed so they aren’t left to imagine the worst during this transition. Communication will be very important throughout this change and Mark’s trustworthiness will only grow if he can keep the employees well informed.
What else would you suggest?
Katherine Tyler Scott is the managing partner of Ki ThoughtBridge. Katherine is the founder and former President of Trustee Leadership Development, Inc., a resource center for governance leaders and not-for-profit organizations, located in Indianapolis, Indiana. She has more than 30 years of experience in leadership education and development, consultation, coaching and facilitation. Katherine is a nationally recognized speaker and has written extensively on the topics of leadership, trusteeship, organizational development, and change work.
For more information on training your company’s leaders to negotiate successfully, visit Ki ThoughtBridge at www.kithoughtbridge.com.