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How Smart Companies Make Their Business Work Better Created by

James Mittler

Content

JAMES E. MITTLER, CMC 






 

<div>Conflicted and Confused</div>






 
First, let me wish everyone a HAPPY NEW YEAR – let’s all hope that 2010 is much better than 2009 which I believe it will be.
Now, what is this conflicted and confused stuff? Last week I received an email with a link to a Huffington Post article that listed the top ten industries that the Bureau of Labor Statistics expects will loose the most jobs over the next ten years. In order, from number one to ten, they are department stores, the semiconductor manufacturing industry, auto parts, the postal service, printing and printers, the ‘cut and sew’ garment industry, newspapers, mining support functions, gas stations and, at number ten, the wired telephone industry.
While some of these could easily be anticipated, like the wired telephone industry, and we would all say ‘yeah’ or ‘duh’ others are surprising. I find the semiconductor industry somewhat unexpected, but when I think more about how cheap computer memory has become in recent years and how the price of that computer has dropped like a rock maybe it isn’t so surprising. 
On the other hand, I just received survey data from WorldatWork that only 14% of the surveyed companies anticipate a pay freeze in 2010 as compared to the 30% who had implemented such a plan in 2009 – a significant improvement. Additional positive news was that 40% of companies expected 2010 to be significantly better than 2008 or 2009.
Then there was the WorldatWork point-counterpoint article about reengaging employees as the recession ends. The point side of the argument was that companies should consider reinstating merit increases and also seriously think about making those employees who had endured pay reductions whole again. The counterpoint side suggested that this might create a perfect opportunity to recognize and reward the truly outstanding performers in the organization by not only making them whole but also implementing an additional ‘merit’ increase to those selected top performers while leaving the average or below average employees at the lower salary rates.
Obviously, taking one approach over the other can generate significantly different results. Granting increases to everyone and making everyone ‘whole’ again may lead to mediocre or average results while taking the approach of identifying and significantly rewarding the few top performers may enhance performance but it may also lead to higher levels of turnover in the ranks of those not recognized as a ‘top performer’.
So, we have very diverse ‘observations’ on which to build our strategic plans for 2010. Should we be pessimistic or optimistic? Should we plan for growth or retrenchment? I prefer to be optimistic and as such will plan for growth and an end to this recession. One thing I feel very certain about is that regardless of what happens to the overall economy we are going to experience a significant change in our workforce and will need to adjust how we deal with our employees if we want to maximize our gains as we come out of the recent doldrums.
One point that all of the ‘experts’ seem to agree on is the fact that as we emerge from the recession we are going to experience a change in our workforce. Those employees who feel that they have been ‘trapped’ in their current position because of a lack of other opportunities will start looking for a new job as the market strengthens thereby increasing turnover. Those who have suffered thru a pay reduction may seek a new position simply to get their purchasing power back to its previous level. Lord knows how much pressure her/his spouse is exerting on the employee to get the base pay level back to where it was in 2008.
So, maybe the real question is “What personnel actions will we take to maximize the engagement levels of our employees so that we retain the best and get the highest level of individual performance and corporate profits?” Unfortunately, or maybe fortunately there is no one answer for all of us because each of us is unique in our market, product, employee base, strategic position, and goals or objectives. I say fortunate because this uniqueness gives us an opportunity to implement a strategy and initiative that will further differentiate us from our competitors.
While there is no single answer for all of us, there is a process that we can all apply to reach that unique destination that will improve our operations and profitability. The first step is to clearly and accurately define where we are today – where are we at this moment in time? Next is deciding where we want to be in the foreseeable future – what will our business look like when we reach that next level of success? Once these two ends of the spectrum are documented we can begin to work on plans to effectively move from the current to the desired.
Wow, all of that knowledge and direction in just one paragraph. While the steps may seem simple and straightforward, the implementation is not. This is where I believe we need to engage our employees. As we have discussed in the past, great managers like Jack Welch, of GE fame, have consistently pointed out that the individual performing the task knows more about the five square feet around his or her work area than anyone else. Accepting this as true, why would you consider changing his or her duties, responsibilities, or actions without seeking their input?
Do you conduct employee attitude surveys? Did you do them in the past? Did you discontinue the process because of the downturn? When do you plan to reinstate the process? Employee attitude surveys are a good way to ‘take the pulse’ of the organization in a confidential manner. Remember, asking the employees for their opinion does not obligate you to change anything – implementing the survey just requires you to provide the employees with a summary of their input and the changes, if any, that you plan to implement in response to their input. It is totally acceptable to tell the employees that they said that they did not like something but that you are not going to change because – and then give them the reason.
Another step might be to implement some focus groups to seek additional input or more detail. A focus group might also be an excellent resource for defining action plans and implementation steps to move from the current state to the new desired level of performance.
In my opinion, I believe it is important to remember that asking an employee for his or her opinion and or suggestion relative to a change is not a sign of weakness, rather it is a sure sign of outstanding intelligence. Asking for an employee’s opinion does not mean that you must implement their suggestion or thoughts, but don’t the best leaders solicit as much data and input as they can and then weigh all of the information before making a final decision and beginning down a certain path to success?
So, as we move out of the recession I think we are being offered an outstanding opportunity to engage our employees who will lead us to lower turnover, improved individual performance, greater buy in to the mission, and ultimately better operations and profits. Does anyone have a problem with improving profits?

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