Ask the Pro: John McCreight, CEO, McCreight & Co.<br>Topic - Engaging Survivors During Restructuring: Communications
Author - S. Woods
John McCreight has seen his share of corporate restructurings. For the past 37 years John's firm, McCreight & Company has consulted to some of the worlds most respected CEOs, senior leadership teams, boards and investors on implementing large-scale strategic change for their dynamic organizations. Recently, John published the timely article Strategic Restructuring…Engaging Survivors. While you can read the full article at www.implementstrategy.com, John shares some thoughts with Bates consultant, Sarah Woods here.
SW: Why focus on the survivors of restructuring when those in need are the ones who are laid off? Aren't the survivors, in fact, the "lucky ones"?
JM: For years we believed the ones with a job are the lucky ones, and in a way they are, but we then recognized it was hard to get companies running again after a restructuring. Those left behind are THE priceless resource in layoffs and restructuring, and yet they often suffer from a type of "survivor syndrome" - filled with concern for their laid-off friends, and for their own futures.
Our practice is focused on large-scale change, and we commonly see companies do everything they can for those who have lost their jobs, but they have to focus as well on the "morning after" when their colleagues return to work.
SW: For those who are now wearing more hats and doing more with less, how can leadership retain them and keep them motivated?
JM: Involvement. Get them together, talk about what happened and what's going to happen. Then ask "What can we do going to go forward"? Management has a responsibility to re-evaluate how business got done before the restructuring, and find opportunities to get rid of projects and processes that are unnecessary. Engage staff to recommend streamlined processes…it's a terrific opportunity for them to make changes that are long overdue.
SW: With all of the distractions of a corporate restructuring, do people really want to hear more from corporate leadership?
JM: In a word, YES. Board members, employees, customers, investors and partners want to understand the reasons for the layoffs. Different people deal with tragedy in different ways. Some put their head down and do what they can to keep moving. Leaders need to pull them out of hiding, get them involved, and keep them looking forward.
Many leaders host large-scale Town Meetings where employees sit listening while management "talks at them" - generally, the audience only remembers 10% of what was said. There must be an open exchange with first level supervisors who are empowered to speak the truth. The goal is to become operational and productive quickly which requires open communications - so you can't possibly "over-communicate"!
SW: What if the future is uncertain or the plans for the future require more restructuring?
JM: Once lost, trust is slow and difficult to rebuild. Communicate with transparency and speak the truth. Don't tell them there won't be another layoff…if you don't know, tell them you don't know, but that you will meet again and again to keep them informed.
Don't stretch, or say things you don't know to be true. If you find that you're not being entirely candid with your team, ask yourself, are you telling them what you WISH was true? They can deal with real information, and you owe it to them to tell it to them straight.
SW: What is the best way to get the message across - especially for global corporations with teams around the world?
JM: It's a real challenge especially in multiple languages. Leaders must take into account cultural norms, time zones, and languages. Words alone are never sufficient to communicate complex organizational change. So communicate visually as well as verbally and do so in a 24/7 media format.
The internet is the best tool we have today, and allows for both work and home-based access. Be transparent; let people see other colleague's questions on a blog.
Send letters; have a town meeting but also take team members out to lunch; sit down and talk one-on-one. Persistent communications starting at the earliest possible moment, and continuing as change continues will get the organization back on its feet and moving forward more quickly.