Upsizing Your Culture When Downsizing Occurs

By Beth Lanier
Ken Chapman & Associates, Inc.
Layoffs, job cuts, downsizing or rightsizing: no matter how you phrase it – or how necessary it may be – letting people go is difficult and disheartening. Living through a severance process is hard; leading others through one may well be the biggest challenge of a leader’s career. There are savings to target, costs to lower and staff levels to reach. Employees worry about their futures and their co-workers, while managers (though worried as well) shoulder the additional burden of making the hard decisions that affect both. Employee confidence is shaken on many levels: belief in their own abilities, belief in management and belief in the stability of the company as a whole. Even the best employees in the organization begin searching elsewhere ” just in case.” The only thing becoming more productive in the near-term is the rumor mill.
Companies going through a severance often don’t realize that they have a retention issue – especially when unemployment is on the rise. But focusing on keeping your best employees has never been more important. Start your severance planning by looking at how to reach the right staffing levels in a way that will retain your best and brightest not just for today, but for tomorrow as well. You are gaining a reputation through this process which will either help you or hurt you long-term as an employer of choice. Successful severances are not measured by whether the right numbers get cut, but by how the right numbers get cut.
Let me challenge you to start with the end in mind; not the end number of employees but the end culture. If you want to sharpen your culture even as you shave your payroll, use a severance process that models your desired culture. Painful decisions will have to be made, but honesty, empathy and dignity must characterize each one. Employees may feel uncertain about their longevity with the company, but they should never feel unsure about their value to the organization as human beings. Successful severance processes ensure that all employees feel valued as persons and can make sense of things every step of the way. Meeting these two basic needs of employees are always important, but they become critical as anxiety in the organization increases. Make sure your severance process meets the basic needs of your people – both long-term and short-term – by starting with one basic question: How would I want to be treated? Then use some basic common sense to turn your answers into actions.
Tell your employees as much as you can as early as you can. Corporate memos and media reports about layoffs should never come as a surprise to employees. Provide as much factual information as possible and be honest about what you don’t know or can’t confirm at the moment. Rumor mills run best in a vacuum and are difficult to manage once they are off and running. Keep your credibility with your folks by making sure the most credible information about future changes is coming from you. Schedule short check-in meetings with your team to encourage questions and open dialogue about concerns. Even if you have no new information to offer, ask your employees to share with you what they are hearing in the halls so that you can clarify where you can. Keep in mind that what employees really want to know is, “What does this mean for me?” The sooner they get an answer, the more quickly they can accept its ramifications and start working through them.
Clear your calendar where you can. Your people want to hear unsettling news directly from you. They need to see the honesty in your eyes and hear the confidence in your voice that says, “I will lead you through this the best way I can with your best interest at heart.” Plan now for plenty of face-time with your team. Remind employees that your door is open, invite them to use it, and be hyper-attentive when they do. Having all of the answers is not as important as listening people through the answers they do have. By hearing people out you not only demonstrate your concern for them, but you learn what your team needs from you. Listen carefully for trends and modify your words and actions accordingly.
Focus on the future while facing the present. Lend an ear and a strong shoulder to individuals who are struggling, but never lose sight of what’s best for your team. The organization must do what is in the best interest of the common good. As a leader and agent of the company, you must support the best interest of the common good. You may not agree with a corporate decision to downsize – you may even be potentially affected yourself – but you must not undermine its effort with others. Admit you feel badly for what someone is going through. Say you wish circumstances were different and the company did not have to take such steps. But never speak ill of the decision-makers or disagree with their decision. To do so creates a barrier between corporate “them” and employees “us” which will stay in place long after the severance is over. As a leader you are paid first for your judgment and discretion. Leading others and the organization successfully through a severance requires the best of both.
For more information about Ken Chapman and Associates’ Leadership Development Programs, contact Ken Chapman at 205.366.0265 or email Dr. Chapman at kchapman@leaderscode.com.