It seems to happen every decade or so. Things are going great: sales, profits, hiring, building - all just zooming along, and then it slows down, stops, and then even starts going backwards. It’s cyclical and will turn around, but for now it’s time to refocus, change strategy and think outside of a new box.

Leaders must set the pace. Yes, your plans are on hold, your life goals are set back a few years now; it’s a bit depressing. But quickly get over it, because everyone is in the same boat or worse, and you have a company to help run, and people are counting on you to drive survival and success. Work hard, remain positive, and lead the way -it will help set the pace for those around you.

Get the full picture. Meet frequently with each department to get a clear understanding of how your business is being affected and changing. Speak to clients, vendors, and other companies in the market, and stay on top of the news. Listen clearly to what is being said and get a well rounded view, so that your assumptions will have a higher likelihood of being correct. The more you see, hear and understand, the better you will be at making decisions that benefit your company.

Make decisions. With an updated full picture of your business yesterday, today and in the future, make the necessary decisions to keep your business moving forward. Cut costs that you cannot afford and/or do not need, and add costs in areas that have a high probability of helping you reach your revised corporate goals and desired returns.

Downsize with care. People are nervous and scared. The mature generation of professionals has been through this before, but they are now in a different phase of their lives, many with financial burdens and families to support. The younger generations are experiencing a down market for the first time and do not fully understand what is happening around them or why. Downsizing with care can make the process a lot easier on everyone leaving, and those remaining.

In planning employee downsizing, study performance, seniority, loyalty, future contribution potential, compensation, benefits and related costs, the roles and responsibilities of your staff, and their personal circumstances. Review and consider labor code protections for maternity, single mothers with young children, orphans and other areas. Get management buy-in on the overall headcount and cost reduction needed, then on the proposed individual(s) in their departments.

Thoroughly plan with your human resources, finance and legal departments, or contacts, the best way to let those being downsized go. When, where, how, and under what terms for each person, should all be considered. Help with the career transition process for the departing or departed, by using professional outplacement services, should be considered and will greatly benefit the company’s image and reputation from the standpoint of the people leaving, and those remaining.

For companies, outplacement services ensures a smooth transition and minimizes the chance of litigation and other negative actions, helps maintain the morale of remaining employees, preserves their reputation as a good corporate citizen, reduces the stress level of those involved in layoffs, is a critical component to their change management strategy, and makes them feel good by “doing the right thing”.

Depending on things such as level, caliber, importance, and personal feelings toward the person(s) being let go, and available budgets, companies can choose from different categories and levels of outplacement services, suiting their individual needs.

Prior to downsizing, take the time to explain to everyone in the company what is happening in the World and the local market, and how it is affecting companies and your company in particular. Be honest, frank and give as much information as possible. Explain that everyone in the company currently is valued and important, but that in order for the company to survive a certain number of people will need to be let go.

Without mentioning names, explain the decision making process, when the notification process would start, and what it would entail. Detail any job search assistance and reference letters that would be provided, and reassure everyone that when the market picks up, those that are leaving will be the first ones called upon to be hired back. Offer to answer questions and then end with a simple and sincere thank you for your time.

In a crisis market situation, communication, good or bad, is very important for people, and the only way it won’t be turned into gossip, is if it comes directly from the top.

Onward: immediately reset the pace. Those left employed are nearly as depressed, nervous and scared, as those who just lost their jobs. Left unchecked and unmotivated during these times, remaining staff can become frozen and unproductive, and if have access to the Internet, can become addicted to sites offering banter consumed with crisis-related negativity, or worse.

Explain to remaining staff the importance of being positive, supporting the company and each other, and being focused and productive at work. Further explain that abuse of company time will not be tolerated. Review with your staff expected work hours and lunch and break time allowances, and review any Internet usage or other office policies. Politely remind your remaining staff that there are lots of people out there who would do anything to have their jobs right now, and that it is up to them to work their hardest and smartest now to keep them.

As you are buckling down as needed, focus on opportunities. Where is available business today, where will it be in the near future and long term? Plan, create, develop, and go after it. There are always opportunities and it is usually the companies that are positive, creative, focused and diligent, that finds or makes them.

Your company surviving and thriving is the most important task at hand. Careful, thought-out planning, honest communication, sensitive and helpful execution, and powerful refocus, will help bring your company more smoothly and successfully through this time of global economic change.

The article is printed in the current issue of AmCham News

Tags : компания, массовые сокращения, паника

Filed under Leadership/Management