Patti Cotton

Executive Coach & Career Strategist

communication

Why Downsizing May Not Be the Answer

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The Hidden Costs of Downsizing
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Tom S., CEO of the Jansen Company (fictitious individual and company names, real client), called me a short time after downsizing.

The company had lost quite a few customers due to the bad press it had received for this.

Employee morale and engagement were rapidly sinking.

There was a loss in productivity due not only to the occurrence itself, but also because the remaining employees had to absorb the work previously done by those having lost their jobs.

The cost in dollars to Jansen was significant and surprising.

The move to restructure had been a move to stop profit bleed. But just totaling money spent on loss of market share due to bad press, severance packages for those laid off, and current training costs for those who needed to absorb the work left behind, was more than the company had projected.

Additionally, employee turnover was on the rise, as people didn’t trust what the company might do next. The search for replacements was also costing Jansen money, time, and effort, as well as the onboarding and training to get the new people up to speed.

Things were a mess as a result of the downsizing.

It appeared that Jansen’s downsizing had been an incredibly poor idea that did not pay off.

It’s a fact that a majority of layoffs do not turn out well. Downsizing has become a default response to an ambiguous future marked by swift advances in technology, volatile markets, and growing competition (for more on this, see “Layoffs That Don’t Break Your Company” by Sucher and Gupta, Harvard Business Review, May-June 2018 issue).

There are new and more successful alternatives emerging – but in Jansen’s case, this was now water under the bridge.

The CEO had called me in because the executive team members were under extreme stress. A couple of them who had never worked well together were simply not talking to one another. He was afraid that some of these executives might secretly be job hunting, and the company couldn’t afford such a final blow.

He wondered if executive coaching might be the answer to supporting his team with the agility they needed as they faced managing this unexpected situation.

I agreed to meet with each one of the executives individually to get a sense of where they were vis-à-vis their commitment to the company and to assess their ability to manage change.

As I did so, I learned that their effectiveness as team members and as team itself had been compromised long before the decision to downsize took place.

And I wished I could have coached them sooner – before they found themselves in such a difficult situation. Because what I identified were some areas in their leadership that, had these been strengthened, might have circumvented the downsizing and what led up to it.

Here were the chief team and individual behaviors I uncovered. These led to high COI (costs of inaction).

  • Poor communication and conflict management (by the way, this one area account for around 67% of all productivity loss in any enterprise)
  • Slow and poor decision-making processes leading to less-than-optimal outcomes
  • Ineffective approaches to bring others along in the process for buy-in and commitment
  • Poor ability to keep eyes on the horizon for trends and shifts while managing the present
  • Poor stress management from high productivity and little return
  • Unwillingness to consider multiple perspectives leading to better creativity and innovation

I believe Jansen would not have had to consider downsizing, had decision-makers recognized the value of intentional and consistent leadership development.

Leadership directly affects all levels of the organization’s success.

Is your leadership producing a great ROI? Here are some questions to help you gauge this:

  1. Are people clamoring to work for your company? Are your employees highly engaged and productive?
  2. Is your business consistently increasing revenue and profitability? Or are there areas that need help?
  3. Are you retaining your current market share and capturing more? Or are you stalled at a certain point?
  4. Where do you stand vis-à-vis the competition? How well are your products and services reflecting the innovation you need to be on top?
  5. What does overall performance look like for your enterprise? Are there any silos or broken parts needing your attention?

Schedule a Complimentary Discovery Session!

Five Daily Habits for Good Management

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Five Daily Habits for Good Management
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Is your company or team making steady and continuous improvements? Or do you feel like you are throwing darts that keep missing the target?

When you’ve spent serious money on strategies and plans to raise team or company performance and these initiatives don’t stick, it’s time to look in the mirror.

You aren’t alone.

The reported failure of large-scale change programs is approximately 70% (McKinsey and Company). It can be that you or an advisor have selected a program that does not address well the needs of the plant, function, or business. But more often than not, the failure lies with the people – not the program.

If your enterprise isn’t making daily strides, check your personal daily management habits. Because more often than not, this is what is holding things back.

Where are you when you review the following 5 points?

The 5-Point List of Daily Good Management Habits

1. Are you teaching people how to solve problems?

If you are telling others what to do, rather than teaching them how to think so that they can perform on their own, then you are wasting everyone’s time, energy, and money. Do you find yourself consistently providing answers for others, rather than helping them to work out the critical thinking necessary to develop excellent decision-making and autonomy? Shift your mindset and your behavior to empower your team to grow and perform at higher levels for you.

2. Are you creating a physically and emotionally safe environment for people to dialogue with one another?

Let’s face it – it’s probably not your product that is the slowdown problem. It’s the way your people work together. Rate healthy communication and conflict management in your enterprise on a scale of 1-5. Let’s say that 1 indicates silos, a reticence to work things out, chronic unresolved conflict resulting in poor performance. And 5 indicates the high ability to work things out, solve problems together, and a great team and company spirit. Where are you? Less than a 5 means you have a problem area that will slow down your performance targets.

3. Are you celebrating mistakes as points of learning?

If your company culture punishes mistakes, you are stifling creative thinking and innovative results. Learn to differentiate between repetitive blunders that cost the enterprise time and money, and new mistakes made on the trail to your new or improved product or service. Celebrate the latter, recognizing that without striking out to try new things, you will always get the same results you have gotten.

4. Are you focusing on results?

Make sure your action plans, meetings, and regular follow-up reports on these are examining results, pinpointing areas of low performance, and course-correcting. Too often, the status quo within a company creates complacency and a lack of follow-through. Make sure that decisions are made on next steps, and an accountability mechanism is put in place so that momentum is not lost.

5. Are you giving regular feedback and coaching to others?

You’ve placed great confidence in your team, and in the spirit of empowerment, you have allowed them to get out there and make change. But how in touch with them are you as they do this? Don’t mistake abdication for empowerment. Regular coaching and feedback are necessary to nurture your people. Focus on the charge you have given them, supporting them with what they need in order to succeed. Remember to include what they feel is important to their personal and professional development. And don’t avoid the tough stuff. People, first. Results follow.

Are you doing all these things well, but still not getting the results you seek?

Your program’s action plan may be costing you big money. More on this next week.

Is Your Team Costing the Company Money?

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Is Your Team Costing the Company Money?
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Three Trust Indicators

You can talk all you want about time management tactics, learning how to facilitate critical conversations, and mastering conflict resolution.

But unless your team enjoys a high level of trust among its team members, none of these wonderful skills will help your team’s performance.

In fact, your team may be costing your company a lot of money.

Signs of an Unhealthy Trust Quotient

Here are some signs your team may have an unhealthy (and therefore costly) trust quotient.

  • Everything takes longer and seems harder for team members.
  • People don’t do their best work.
  • They easily become disengaged and withdrawn.
  • Their confidence in themselves and others on the team diminishes.
  • They have feelings of complacency or even fatigue.
  • They are not as prone to connecting with each other or sharing information.
  • Grousing about the company may be a common theme.
  • Some might even question if the enterprise is a right fit for them.

What It Is Not

These signs are not to be confused with team overload, where a company over-commits, and its results are felt throughout the organization with inappropriate workloads and deadlines. No, this is not overload.

What It Is

This is a falling away from former collaboration. It’s an unwillingness to participate by speaking up. It’s a reticence to take risks together, and an uncomfortable commitment to the status quo. You may see things like escalated emotions, turf issues, abdication of responsibility or micromanaging, and certainly some hidden agendas.

As you consider what comes with low trust, you can easily deduce what this means to the company.

What do you do when you detect signs that your team needs to build more trust?

You need to determine the source of this lack of trust so that you can rectify it.

According to researchers Dennis Reina, PhD; Michelle Reina, PhD, and David Hudnut, MIA, renewing trust can result in greater accountability, effectiveness, innovation, respect, performance, profitability (need I go on?). The researchers have developed a Team Trust Scale that measures three areas: trust of character, trust of capability, and trust of communication.

How does your team rate?

I have taken the researchers’ indices of a high level of trust in these areas and paraphrased statements with which you and your team members can rate yourselves.

Using a scale of 1-5, with 5 being highest. How do you rate?

Trust of Character

  • I manage expectations
  • I establish boundaries
  • I delegate appropriately
  • I encourage mutually-serving intentions
  • I keep agreements
  • I am consistent

Trust of Capability

  • I acknowledge people’s abilities and skills
  • I allow people to make decisions
  • I involve others and seek their input
  • I help people learn skills

Trust of Communication:

  • I share information
  • I tell the truth
  • I admit mistakes
  • I give and receive constructive feedback
  • I maintain confidentiality
  • I speak with good purpose

How did you do? And where do you need to shore up first, in order to make biggest impact in up-leveling team trust?

Lead or Manage? Why You Need to Do Both

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To Lead or Manage is the Wrong Question: You Need to Do Both

Part I. Making Your Leadership Work

To lead or manage? This is the wrong question – you need to do both.

The differences between managing and leading are crucial, and you will find a lot of material on the subject.

But the comparisons imply that leadership is preferable to management, and that in order to be a leader, you must leave the managing to others.

This couldn’t be farther from the truth.

When you manage, you should also be leading in order to be at your most effective. And when you are leading, you absolutely have to manage, as well.

What are the key differences, and how do you make them work together?

Leading focuses on taking the enterprise into the future, creating followership through influence in order to meet the vision, mission, and objectives of the enterprise. Managing focuses on the work at hand, ensuring that the necessary pieces work well together to meet the vision, mission, and objectives of the enterprise.
Attributes of leading include:               Attributes of managing include:
  • Create and share vision
  • Inspire change
  • Imagine possibilities
  • Lead forward, setting direction
  • Anticipate trends
  • Coach and mentor talent for culture and succession planning
  • Ability to think abstractly
  • Ability to articulate and influence
  • Ensure goals and objectives are being met
  • Understand how the work gets done in an organization
  • Accountable to team
  • Ability to teach and mentor
  • Ability to monitor and interpret data, outcomes
  • Self-discipline
  • Direct others
  • Provide input

As you review these two lists and make your own comparisons, where are you? Can you see that, if you are to be most effective, you will actually need to be able to do both?