Weathering the Tough Economy

Few businesspeople today have ever faced such a dreadful economy, nor the multitude of challenges it has wrought. This is new territory for almost everyone. How well people operate going forward will determine the speed at which we, both individually and collectively, pull out of this economic malaise.

Though I do firmly believe that “this too shall pass” and we will eventually see an expanding economy, with job growth, I am no economist and certainly have no crystal ball to foresee when that turn-around will come. But I can opine on internal business environments and how leaders, managers and their employees should be operating together to serve the best interests of their companies.

Regardless of which way the economy goes in 2009, leaders' and managers’ uppermost focus must remain on the perpetuation and long-term success of the company – a goal that encompasses many aspects of running a business and countless decisions, big and small. But if business leaders and managers do only one thing right in these trying times, it has to be treating their employees with respect.

Many companies have had to impose layoffs in recent months. Likely there are more to come. Even if they haven’t laid anyone off yet, virtually every company, even those with strong balance sheets, is considering or has enacted pre-emptive budget cuts, including wage and hiring freezes. The result? Nervous and insecure employees everywhere.

Needless to say, nervous and insecure employees are not always doing their best work – which is the last thing a stressed organization needs. Businesses need their people to be at their best to collectively surmount today’s complex challenges, and can’t afford disaffected or disconnected employees.

It is incumbent, then, on managers and leaders to take some simple actions to counteract the unavoidable negative climate of fear that can set in and afflict even the best businesses under the cloud of budget cuts or a recent or potential layoff.

Downsizing and economic uncertainty is a time for dialogue based on facts and the realities of the marketplace. It’s a time for listening and responding, and for alignment. Words alone will not calm people's insecurities. But the right behaviors and actions will. One valuable behavior is encouraging dialogue. Set up a system to invite feedback. Don't let anything fester. Keep the dialogue open. Listen.

Re-engage the workforce in the business at hand. Restate business goals and the strategies that will get you there. Remind them in succinct terms why you're in business. Bring the outside world in to re-emphasize the climate of uncertainty you’re operating under, including the challenges your customers, suppliers and competitors are facing. Acknowledge people's frustrations and insecurities but, at the same time, remind them that this is the world we’re all operating in today. The only thing they can control is what they do every day. Re-iterate what is important – the business goals – and make sure that they see their connection to and role in fulfilling those goals.

Employees, too, have a significant role to play in this dynamic. In addition to their willingness and desire to put in the extra effort, they should be open to new ideas and new ways of doing things. The need for honesty is also critical, alerting supervisors and managers to new opportunities and unanticipated problems - along with proposed solutions. Employees should also remain curious about the world outside their company, especially their customers but also the global economic climate and the many facets of the world that have direct and indirect impacts on how their company operates.

Leadership should keep managers in the loop so there is a common understanding of the marketplace realities that led to the action (e.g., layoffs and/or budget cuts), the company's business strategy going forward, and the responsibilities of the employees to drive toward those goals. Prepare backgrounder documents for the managers to assure that employees across the organization are hearing a consistent message, and that managers are prepared to answer the inevitable tough questions.

There's an unspoken truth when people are laid off: their work still must get done. But where is that work going? How is that particular operation, function or department going to make up for the lost manpower and productivity? Who is going to take on that burden? What work or project needs to be stopped or reassigned? These are often the first and most difficult questions on everyone's mind after the dust of downsizing settles. Be prepared with realistic, workable answers.

In their January 12 Business Week column, Jack and Suzy Welch offered what I would consider another valuable piece of advice:

“…resist the impulse to make 2009 a year devoid of celebration. When times get tough, leaders often assume it’s unseemly to stop now and again and, well, have some fun. But this year – because of its severe challenges – is sure to be filled with remarkable small victories and heroic efforts. What a lost opportunity to build morale it would be, then, not to recognize and reward the people who are over-delivering. More than ever, they need and deserve it.”

If we learn anything from these frightful, uncertain times, let’s hope it’s the central importance of showing respect for employees by communicating with them frequently, openly and honestly.

The Value of Office Small Talk

It’s called “water-cooler talk,” or just shootin’ the breeze. It’s the non-productive chitchat that occurs in every office every day of the week, especially Monday. And it’s the bane of many productivity-obsessed bosses. But is it communications? Is there any value in it? Should it be discouraged?

Like anything, too much is too much. Nothing of value happens in a business environment if people spend the bulk of their time talking about topics unrelated to the business at hand – the NFL playoffs, stock tips, a big family event, complaints about the weather, golf scores, vacation plans, and the like.

This kind of internal communication, if practiced in moderation, is indeed valuable.

Let’s face it, people comprise businesses. And these people have lives outside the office: families, celebrations, illnesses, hobbies, pet peeves, and passions unrelated to their 9-5 responsibilities.

Knowing a person’s interests outside the office often gives us clues about what makes them tick – how they operate, how they think, who they are, what they’re truly good at. Having such insights into and connections with the people we work with regularly, or even occasionally, can be valuable in the long run.

For instance, common interests can create strong foundations for establishing and sustaining important working relationships. It’s the proverbial icebreaker that gives us entry to tackling difficult and challenging work-related subjects day-in and day-out.

The ability to open a Monday morning business meeting with a brief rehash of a Sunday afternoon football game eases us into a discussion of how to address a vexing customer relations issue or a challenging technical glitch. Or it enables a manager to soften the blow of some bad news. Maybe it serves as an appropriate metaphor for or segue to the topic at hand.

Small talk can also help us connect with people at remote locations. It can be fun working with people in other locations when your respective favorite professional football, baseball or basketball teams play each other. You can speculate ahead of the big game, needle one another, gloat a little if your team wins, or make lame excuses if your team loses.

We’ve all had to work with people about whom we know nothing; people who think the personal side of our lives is an inappropriate topic for office discussions; people who dive straight into the topic at hand every time, with no preamble discussion beyond a perfunctory “good morning.” Think about your working relationships with those kinds of people. Would the word “sterile” describe it? Did you feel you could trust them? Did you enjoy working with them? I dare say the answer to these questions is “no.”

Consider the opposite. Suppose you work for or with someone who opens conversations by asking how your son is doing in his first year away at college, or about your wife’s job with a company that isn’t doing well, or inquiring about the health of your ailing mother. You’re going to have a different kind of relationship with that kind of boss than the former.

This person operates on an entirely different plane. Instead of a terse “let’s get down to business,” by acknowledging the personal issues that may be distracting you at the moment, your colleague indicates a personal stake in your life and an awareness that you may not be on top of your game that day. Showing that we are concerned about each other’s welfare and personal challenges is a sign of respect for the person as a whole being.

There’s still another side to office chitchat, with perhaps a business benefit. Suppose a water cooler discussion one day reveals the fact that a co-worker lives next door to someone you know as a valuable contact in your particular field. Maybe your water cooler friend is in R&D and you’re in sales. As a tech guy, maybe he didn’t think of his neighbor as a potential customer. But you know the name and so you ask your office buddy for an introduction, or perhaps you finagle an invitation to a neighborhood Christmas party where you hope to meet this neighbor. There's nothing wrong with that, especially if it leads to new business.

Similarly, maybe someone’s outside hobby has some bearing on the business that they hadn’t thought of. Or maybe a realization that a new hire’s single-digit golf handicap indicates the kind of dedication and perseverance you’re looking for as a new member to your team.

The point is, we are all people for whom the work-a-day routine is but one facet of our lives. To recognize that is good. It is a sign of respect for our colleagues as individuals, acknowledging their unique selves that they bring to the job every day.