It’s tough at the moment. Media stories remind us about difficult economic prospects, redundancies, massive public debt, public sector expenditure cuts; and increased demands on not-for-profit services. However a downbeat climate is not one in which organisations, innovation and individuals flourish. Turning things round and ensuring the long-term sustainability and resilience of organisations requires a different mood.
It requires the kind of leadership and people management which keeps its eye on the vision and purpose of the organisation and has a clear value set – whilst taking tough decisions to secure the financial future of the organisation. The kind of leadership which gives people the enthusiasm to move forward, a focus on the work to be done, a belief on the organisation and themselves.
Values, trust and respect
A key requirement, led from the top, is the ability to articulate the vision, purpose and values of the organisation, and create a climate of trust and openness.
As the financial services sector illustrates, that may mean regaining trust and respect (internally and externally). It may require a long hard look at purpose and values. It means facing up to any lack of “cultural fit’ between its espoused values and its exhibited values.
The current economic crisis has given us all a wake up call about just how vital these issues are for healthy organisations. Sound organisational, collegial, professional and personal ethics are important to the way in which decisions are made, how business relationships are conducted, how we fulfill our obligations to the organisation and our wider obligations (and that of our organisations) to the economy and society. Some examples of how ethics may be encapsulated are in the following questions and expectations:
- Transparency —do I mind others knowing what I have decided?
- Fairness — would my decision be considered fair by those affected,
- Impact — what consequences are there?
- Courage to speak out and challenge;
- Client, customer and patient service — confidentiality and obligations.
Managing change for maximum organisational and people resilience
Leaders and managers who can take tough decisions and make difficult choices about priorities, articulate the future vision, engender trust and take people with them are precious at a time like this. In times of distressing organisational change ensuring predictability, understanding, control and compassion are the key to future success. How you handle each individual as well as the overall scenario impacts on the organisational climate, on people’s ability to perform productively and innovate, and on external perceptions of the organisation.
So what are some of the key ingredients of handling difficult organisational change in a way which achieves the most for the organisation, those within it and those leaving it if those are the changes being made? Robert I Sutton’s article, ‘How to be a Good Boss in a bad Economy’ in a recent edition of the Harvard Business Review offers a helpful review based on various studies and pieces of research:
- Re-orientation. Give people as much information as you can about what will happen and when. That gives people time to orientate themselves, make adjustments (such as not taking on new financial commitments), and begin to understand difficult decisions and choices.
- Understanding. Explain why the changes you’re implementing are necessary, and expect to do so more than once and in different ways. Ensure individuals can raise questions informally with people they trust.
- Control. To be a good leader in a tough economy means taking difficult decisions. People look to you to do that, but at the same time when people feel powerless because they can’t influence events that turns into frustration. They want their efforts at work to have an impact.. So you need to engage them in the ‘how’ where possible. You also need to make sure they are more engaged in the ‘how’ of other activities and keep up a stream of small ‘win-win’ achievements where you can.
- Empathy. Put yourself in the other person’s shoes. Remember that they are hearing the news for the first time; you have already adjusted to it by the time you deliver it. Recognise that they have to handle shock. Ensure they can retain their dignity. Consider how the announcements you make afterwards (such as the importance of retaining the brightest and best, pay announcements following requests that staff voluntarily accept pay cuts or work without pay) will sound.
Five a day, fundamentals for a healthy organisation
This article set out some of the ingredients necessary to create the type of organisational climate needed to move forward. This is not just about ‘top down’ leadership. As a recent paper from ACAS and CIPD shows , it’s also about the ‘five a day’ fundamentals of good line management necessary to a healthy organisation. Healthy organisations and healthy people in tough times aren’t just about leading from the top. They are about leadership across the organisation. Line managers are critical in maintaining a healthy organisation, and healthy people who can contribute productively both for the sake of the success of the organisation (and the wider economy and society) and for their own future and sense of self-value.
The joint ACAS and CIPD ‘five a day’ checklist for resilience through recession focuses on line managers and also underlines the importance of an organisational culture of openness and mutual respect. The ‘five a day’ is based on research and practical experience and covers the importance of managing five areas:
- managing work now and in the future;
- managing the team;
- managing the individual;
- managing conflict and difficult situations; and
- managing yourself.
Key themes are:
- how to manage stress and ensure well-being at work, both in managing self and individuals in the team;
- the importance of clear objectives, planning, communication, and team participation;
- the early management of conflict, including looking for causes behind the symptoms, seeking evidence from all sides and future focus;
- self awareness;
- values of integrity and professionalism; and
- the benefit of a sense of humour and ability to ‘show the human side’.
Values based, hard headed, warmhearted and healthy
The painful decisions required by this recession, both organisational and personal, have caught many people by surprise, and for many are ones they have not had to face before. However we’ve also been delivered with a fresh challenge to ensure that the organisations which we manage and lead flourish in the future, and to consider how we need to act differently to ensure organisational, individual, economic and societal health.
To summarise that requires us to be both hard headed and large-hearted and underlines:
- the importance of trusted and respected organisational values and purpose – and the importance of reassessing these if necessary;
- the importance of integrity and ethics –personal, professional, collective and organisational;
- the need for trust, openness and respect –applying these in making difficult changes;
- the importance of improving ‘soft ’people skills amongst line managers, and their “five a day” contribution to organisational success; and
- the need to place an emphasis on value (and self-value) in respect of the individual, self, the team, the organisational and more widely.