Triage in a Bad Economy

In a war zone or natural disaster, triage is a means of prioritizing critically injured people for appropriate treatment based on their relative need for care. It’s a supply-and-demand challenge: too many patients and too few doctors. Triage efficiently rations patient care in the context of insufficient resources to assure the best possible outcomes, though that does not necessarily mean optimal medical treatment for all.

Various inter-related considerations go into deciding who gets treatment. The number of patients versus the number of available medical personnel and equipment is the first consideration. Those with a chance of survival if treated immediately are given priority. Those least likely to survive are usually given enough attention to assure a modicum of comfort, but little more. Less severe cases are put on hold until the more endangered patients are stabilized.

Many businesses today are practicing their own version of triage, as they continue to bleed cash and customers in this difficult economy. For instance, many retail chains are shuttering under-performing franchises that have become an over-extension of their ability to serve now scarce customers; outlets unlikely to see a near-term reversal of fortune, while they continue to deplete precious cash flow. They must be pared from the system.

Internally, countless other triage-like decisions are made that impact all facets of the operation. Early on, when the revenue drop first becomes apparent, decisions focus on cutting back on or not doing things deemed superfluous or luxuries, such as regional sales conferences, corporate jets, certain training activities, and some travel.

Of course, when those kinds of cutbacks are found to be insufficient to staunch the bleeding, other interim steps are taken, such as cutting back on the use of some outside consultants, reducing or eliminating overtime, followed by asking people to take pay cuts. The last resort is to lay off full-time employees, akin to a medical amputation.

Amputation is not hyperbole. After having invested in hiring, training, and cultivating employees, cutting them loose represents a repudiation of that outlay. And, when business picks up again – as it always does – those investments will need to be made all over again.

While it’s certainly understandable to offset corporate losses by cutting back on expenses, it’s unwise to make generalizations about where, what and how to cut, especially when it comes to outside consultants, and that includes those who provide counsel on employee communications.

Certainly in the context of triage style layoffs, the retention of outsiders doesn’t play well among the remaining employees. People may ask, “Why is the company still spending money on consultants after it laid off long-time employees?”

It’s a valid question, but communications consultants can help managers deal with the chaos and uncertainty spawned by cutbacks and layoffs. Further, unlike full-time employees, the cost of consultants is a short-term investment and does not require additional overhead costs, such as benefits and office space.

Communications counsel can help managers in their quest to engage employees, and sustain employee relationships and trust through good times and bad – but especially during bad times. As noted in Weathering the Tough Economy, layoffs and wage and hiring freezes result in nervous and insecure employees everywhere, not always able to do their best work – which is the last thing a stressed organization needs. Businesses need their people to be at their best to surmount today’s complex challenges, and can’t afford disaffected or disconnected employees.

Managers and leaders must 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.

Re-engage the workforce in the business at hand by restating business goals and the strategies that will get you there. Remind them 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.

Leadership should keep managers in the loop so there is a common understanding of the marketplace realities, the company's business strategy going forward, and the responsibilities of the employees to drive results.

In Keeping People Plugged In, I wrote that difficult times demand the best from everyone to help minimize the damage that this economy might visit upon an organization. Companies cannot afford to have employees distracted by fear of job loss.

Successful companies are those that keep employees engaged in the challenges at hand by communicating with them often and keeping them apprised of the evolving situation. Conversely, when employees are kept in the dark, left to read the tealeaves and draw their own conclusions, they usually infer the worst and operate accordingly.

Good communications go a long way toward keeping key people engaged in the tasks at hand, facing challenges head-on with their best talents. Companies that truly engage their people in the business challenges are those that will emerge from this current economy the strongest.