Managing in Troubled Times
Adrian Furnham
Every generation looks back to what they thought were less turbulent and troubled times. The 1980s look to many to have been a quiet, stable time marked certainly by a little, but not a lot of change, division and strife. During that period people even looked back to the 1960s, remembering only hippies and flower power and not Vietnam: the marches and the sit-ins. Even people in the peaceful 1950s looked back while their world was threatened by the Korean war, the Suez Crisis and de-colonialisation, to what they remembered as a golden, peaceful period of stability.
The past is always portrayed as more orderly, stable and predictable than the present. This is as true in business as elsewhere. We seem very conscious of instability and changes in our current situation believing that we, now, live in especially turbulent times. The wish “May you live in interesting times”, can easily be read as “Oh dear, we seem to be living in turbulent and troubled times.”
Assuming that the speed of change is indeed increasing, and the world is becoming more difficult and complex, what does this mean for people at work? Does it mean a Darwinian shake-up with the fittest surviving? Does it mean a massive increase in work and life stress and all the associated problems that go with that? Does it provide powerful and important lessons for companies and managers in tow to manage better.
Economic and organisational crises can lead to dramatic changes at work. Many activities cease. Some organisations freeze, then cut, budgets on things they think less essential. Favourite targets are recruitment and training, then advertising and marketing, and if they have it – R & D. Making an error on easy cuts that turn out to be essential here has cost many organisations clearly. Cost cutting leads not to recovery but demise.
When the chips are down senior executives fear ‘mean’ early retirement packages and communication of all sorts changes. Some senior managers hide or go silent. The PR machine either goes into over-drive or itself is cut. The organisation may suddenly become the focus of press interest which may not be welcome. Once publicity seeking executives become “unable to comment”. They did unable to talk about the crisis around them which could be part of their making.
There are soon announcements of general “belt tightening” policies. Pension schemes are closed, budgets slashed, people are not replaced.
Ordinary people-indeed those at all levels – begin to get worried even frightened. Many are concerned they will be made redundant and whether the organisation will have a LIFO or FIFO policy (Last/First in, First out). Many get concerned about wage freezes co-occurring with mortgage payment increases as well as the sudden and difficult-to-manage increase in the cost of living. Those working on a hourly basis see a reduction in their hours. Senior executives fear ‘mean’ early retirement packages.
Vicious and Virtuous Cycles
Those made redundant or even moved to a new position often experience a well known shock cycle. There are many version of this stage-wise or cycle theory based on the death and dying literature. There are different, but related concepts or stages such as:
• Shock stage: initial paralysis at hearing the bad news.
• Denial stage: trying to avoid the inevitable.
• Anger stage: frustrated outpouring of bottled-up emotion.
• Bargaining stage: seeking in vain for a way out.
• Depression stage: final realisation of the inevitable.
• Testing stage: seeking realistic solutions
• Acceptance stage: finally finding the way forward
Others have opted for a simpler three point construction.
• Numbness (mechanical functioning and social insulation)
• Disorganisation (intensely painful feelings of loss)
• Reorganisation (re-entry into a more ‘normal’ social life)
The Management Essentials
The management of people is about five things. First, the recruiting of talented, productive, motivated people. Having done that one needs to select the best and reject the less able, motivated or dedicated. Third, essentials of management is two fold – first to engage their head and heart so that they are maximally happy and productive. Fourth, there is the necessity of developing staff so that you enable individuals to reach their full potential. Finally managers need to know how, when and why to let go people (to exit them) so that they leave with dignity and positive feelings about the organisation.
People stay productive and loyal because of many things: their personality, values and life situation; their available opportunities but most frequently because of the way they are managed. All the more important that things are well managed:
There are clearly things to do if trying to manage in turbulent times.
• Re-engage through frequent, consistent, honest communication - like lunch time workshops.
• Lead from the front: Be strong, bold, adventurous giving confidence to others.
• Learn from previous recession: Beware cutting that which add customer value, not going for big gestures – so the little things right.
• Fix the leaks that soon appear when people leave or things are cut.
• Innovate: get creative with all the stakeholders.
• Change: sharpen your focus, streamline process.
• Try to attract talent badly managed elsewhere. See this is an opportunity.
• Prepare for economic recover which will (eventually) come.
Just as the pessimist sees the glass half empty so they see turbulent times predominantly as a threat: a threat to their stability, livelihood and continued practices. Indeed their perceptions may well self-fulfilling with al those potential vicious cycles already discussed.
Optimists believe that changes mean opportunities. Complacent, monopolistic organisations that have not moved with the times often go under. Bad times can be Darwinian in the sense that they are periods when only the fittest survive.
Turbulent times test leaders. They can reveal hidden or obscured insights like what really motivates people at work. They demand creativity, new thinking and courage.
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