Archives 2016

We are in choppy waters as the international trade war ramps up.

Markets are in chaos, oil process are 

The oil crash in 2014, from over $100 a barrel to $30 in 18 months, has been hard on our economy, with over 100,000 layoffs. Many companies have closed their doors and are in dire financial trouble.

The community is rife with terrible stories about how companies handle employee communications—from lies, senior leaders told people everything was good, then announced layoffs the next day.  One company asked all their staff to go into their offices, close the door and wait till 11:00. If they hadn’t been told by 11:00 that they had lost their job, they could have come out and continued.

In short, many companies and bosses have messed up by not treating their people with respect and dignity.

How Not To Mess It Up

How do you talk to your employees honestly about company finances and plans?

It’s hard to be a business owner with people counting on you when you have worries and aren’t sure what is appropriate to share. As an employee, it is also hard to be in the dark regarding your employer’s plans and wonder if layoffs are looming or your job is changing.

Here are four tips for talking with your employees when business is in tough times:

Tip #1: Don’t keep your employees in the dark- speak to them.

Here is the number one truism about your employees: They will make it up without information.

Employees are much closer to what’s going on than you are. They will know if sales are slowing because they are dealing with the phones and the deliveries each day. They also watch the news and follow social media, so they know. Never think that no news from you will be seen as good news.

There is a fine line to know when to discuss finances with employees. You didn’t want to alarm anyone, but you also didn’t want them to jump to conclusions because they aren’t getting information from you.

Bring everyone in, sit them down, and lay out a few key points about the company’s situation. Don’t dwell on bad news, and don’t always show a picture of sunshine and roses—be balanced. Tell your people the steps you are taking to address the situation. You don’t have to have all the answers (see the next point below), but you should also not give the impression that you’re clueless.

Read More about using silence while communicating

Tip #2: Allow for two-way communication.

When delivering bad news, I suggested speaking so your humanity and empathy come through.

Because we live through profit, losses, and recessions, you won’t have answers to every question. DO NOT make promises you cannot keep (like I guarantee no one will be laid off).

However, letting employees talk and ask questions will make them feel part of the process. They will know you are listening. Hearing their questions will tell you much about what your people are thinking. You may be able to dispel rumours and reassure them.

Please keep track of the questions you have not answered and address them in subsequent meetings.

Tip #3: Convey confidence.

Suppose you are in a panic; that will be magnified tenfold in your employees. If employees sense that you are coming across as if the sky is falling, they could start heading for the door.

The best way to deal with your emotions is to know, plan, and write out what you want to say in advance. Practice it if necessary. Take a deep breath and put on your game face before you meet with your people. You will feel calmer and more confident and convey that image.

Tip #4: Be a good fiscal role model.

Who would you support as a leader during challenging times?

The CEO of an oilfield services firm overheard griping about the first-class service he received on his last flight just before he told his managers they had to cut staff by 5%.

Or, the Boss who took a more significant pay cut than the staff got, cancelled the Palm Springs leadership Team retreat and cut out catered lunches for management meetings?

Double standards destroy your credibility. When you share bad news and try to reassure people, they will likely not believe you unless they feel you have skin in the game.

Let me close by saying that each situation is different, so there are no simple answers to how to communicate bad news to employees. But I do know that without your employees, your company is nothing.

Put yourself in their shoes and be the leader you would want to have during tough times.

Leading means you need to be in front.

I was a Sergeant Major in the Canadian Army.

I held the second-highest non-commissioned officer rank and had a role that I loved and aspired. It was a job of power and influence. I carried a responsibility to my soldiers and, most importantly, to my leaders.

Imagine my surprise when I learned that the Latin root of the words ‘Sergeant Major’ was ‘Head Servant.’

Once I got over the indignation of being a servant, I realized my job was one of service.

Introduction to Servant Leadership Theory

Servant Leadership is a leadership philosophy first espoused by Robert Greenleaf in his 1970 essay “The Servant as Leader,” in which he states that servant leaders are servants first and leaders later. This is in sharp contrast to what many see as traditional leaders who aspire to lead through power and acquiring material benefits.

Many management thinkers such as Blanchard, Covey and Senge have since then reinforced the Servant Leadership Theory. More recently, Simon Sinek has made millions with his Leaders Eat Last book by encapsulating the importance of service to achieve your results.

The essence of servant leadership—serve the employees first and success will follow—is thousands of years old, dating back to hundreds of centuries to India and China, the Bible and texts of Islam. In contemporary practice, it means actively listening to employees, treating them as people with needs, interests and failings, and respecting their roles in the company and the world.

Unfortunately, the concept of servant leadership tends towards philosophical musings with little practical application. Worse than that, many people read into the concept that as leaders that they must cede power and authority to their employees.

5 Ways To Free Yourself From The Philosophic Tyranny

Servant Leadership does not mean you prostrate yourself to your employees but there are everyday habits leaders can incorporate into their management routines that can have powerful results.

►Listen. Pay attention to how you interact in face-to-face conversations, large groups and meetings. Find meaningful ways to invite feedback and suggestions. (Read more about using silence)

►Appreciate. Instead of assuming people will do things wrong, shift your attitude to look for people doing things right. Learn to appreciate that no one shows up to work to do a poor job and tell them you appreciate them. (Read about saying thank you)

►Respect. Do you treat the janitor the same respect as the CEO? You, as the leader, set your team’s culture of respect.

►Develop. Do you offer your employees the tools to become the best they can be? Provide training, professional development, book clubs or other personal growth tools? Emphasize coaching over controlling.

►Unleash. People have power and energy so how can you help them develop it? Decentralizing as many decisions as possible so employees can help you achieve your results.

What’s Next?

Over the next weeks, I’ll unpack Servant Leadership in more detail.

I hope to turn those philosophical nuggets into practical and applicable tools you can use to get results.