Making Tough News Inspiring

I had dinner with a client/friend last week; she is the COO of a small company that has had a lot of ups and downs given its revenue reliance on the construction industry. She has been studying trends in her business and it’s clear to her that things are going paperless; that more online/cloud computing is on its way and that things will change radically in the way business is transacted. To be competitive, the company will have to drive down the cost of doing business and still provide excellent service in a complex industry.

Instead of hiding her ideas behind a wall of silence until the inevitable day when she has to deliver bad news about restructuring and lay-offs, she called a town hall meeting. Here are some of the ideas she shared with the employees:

This is How Things Are Changing: She spelled out clearly how technology especially online computing would be game changing.

This is How the Changes Will Affect Our Business: She outlined the financial benefits of new technology and the consequences in terms of an uncompetitive position in the marketplace if it doesn’t change.

This is How the Changes Will Affect Job Roles: She drew two columns on a whiteboard: ‘This is How It Is Done’ and ‘This Is How It Will be Done’. Tasks currently done by paper or in disparate systems will be automated online.

This is How You Can Prepare and Benefit From the Changes: Clerical positions can’t stay as they are BUT there are opportunities to move up to more complex positions that are only done by people with knowledge, experience and judgment. Preparing for new roles requires training from us (company) and a determination from you (employee) to 1) ask for new projects and work; 2) be willing to step up and do more; 3) take a proactive approach to learning and building skills.

In Case You Think This Means a Pay Increase: The COO showed data from two outside sources that showed how salaries internally were out of line with the prevailing market.

These are tough messages for any leader to give but what is better: the shock of a lay-off with little or no notice or a clear message of how things will change and the offer of a partnership to develop new capabilities and skills?

The feedback from the staff has been very positive. They got it. This is change management at its best: BEFORE the fact, not AFTER. The senior employees are working diligently with the more clerical staff to design an on-the-job training curriculum and there are daily meetings to talk about progress. This is the tipping point in terms of culture change: it starts here.

Is everyone going to get on board? Probably not, but all employees have a clear vision, the business case, and a roadmap to develop new skills that lead to interesting work and a more rewarding career path. They have a choice: to stay and learn or to find work in a company that still needs their skills. That’s what most of us want when change is all around us: the ability to make an informed decision.

Here are my ‘take-aways’ from this story:

• Frame a new strategic direction clearly and with conviction.
• Be a leader. Don’t hide and don’t waffle.
• Start the change process before the event, not after.
• Explain in certain terms what most people want to know: What’s In It For Me?
• Show how behaviors need to change as well as skills.
• Invite a dialogue but be confident about what parts of the change in strategic direction are non-negotiable.

Are you facing a similar challenge as a leader? Will you share with us how you are delivering a tough message that inspires?