The modern economy is in a constant state of change, which means businesses — large and small — must move quickly in response to market shifts. Even the strongest companies will cycle through good times and bad. Bringing out the best in employees is a challenge in even the best of times. According to Gallup, […]
The modern economy is in a constant state of change, which means businesses — large and small — must move quickly in response to market shifts.
Even the strongest companies will cycle through good times and bad. Bringing out the best in employees is a challenge in even the best of times. According to Gallup, only 32 percent of U.S. workers felt engaged in their jobs in 2015, which was a pretty good year for the economy and business growth.
So imagine the struggle of keeping the best workers happy when the business transitions through a down cycle? And it will. Every business goes through four repeating phases: startup, high growth (the “tornado”), declining growth (the “avalanche”), and consolidation.
Picture the employees sliding downhill in that avalanche, and you get the idea. It’s up to a company’s leaders to help them hold on, to turn the inevitable transition period from exhausting to exhilarating.
How does a business leader manage that through possible layoffs and pay cuts or, at the very least, major changes to the processes that are used to get the work done every day?
Start putting people in the roles that fit them best
This is the time to ask some tough questions. Who on the staff is so tired and discouraged they can no longer do their jobs well? Who has been moved outside their normal roles, and how are they handling their new positions? Do they need to be moved back or not? Once you have answered these questions, you can step back and take a more accurate look at your staff. You’ll be able to add people where you need them — and remove people where you don’t.
Expect resistance to change
If this is painful for you as a manager, think about how it is for staff members who have a lot less control over the situation. How you and your leadership team present change to your staff can make a world of difference. Employees who feel involved in the change and understand what’s going on demonstrate a more rapid recovery and may even perform better in the end.
Clear and frequent communication is vital
If you introduce processes that staff members don’t understand or haven’t learned, you’re going to slow things down rather than speed them up. Invest in your people. Make sure they always have proper training and equipment.
During the consolidation period between high times and low times and back to high times again, a leader’s primary role is to rally those frazzled and frustrated troops.
Make sure everyone understands you’re in the midst of a normal process. And keep waving that flag so that no one gets discouraged.
Dave Hopson, Ph.D., is author of “Surviving the Business Storm Cycle: How to Weather Your Business’s Ups and Downs,” (www.davehopson.com) and managing partner at Triumphus, which offers IT consulting services to companies from startup through exponential growth to IPO.