Few things are more difficult for a business owner than breaking bad news to employees.
How you disseminate that information is imperative to your company’s future, because the message your employees receive could very well mean the difference between moving forward as a team and getting mired under a thick cloud of mistrust.
Consider the case of Medical Mutual of Ohio. In 1997, the health care insurer underwent a major upheaval at all levels: It changed presidents, the board of trustees and, in a further blow, lost its identity — the Blue Cross and Blue Shield logo.
Medical Mutual survived the changes, emerging under new leadership with a new name and a committed work force, due in large part to good communication between new management and the employees, explains Terrie Bemer, Medical Mutual’s manager of human resources.
“While it was happening, the entire situation was like a bad divorce,” recalls Bemer, who discussed the ordeal in October at the Employers Resource Council annual meeting. “The parents were upstairs fighting and the kids were downstairs waiting, unsure of what would shake out. During the transition, we didn’t know who was in charge and who we’d offend with comments or questions. Communication was flowing up, down and sideways.”
And when the management group — led by current CEO and chairman of the board Kent Clapp — gained control, employees still weren’t sure what would transpire, or even if their jobs were safe.
“That’s when communication became the key,” says Bemer. “Kent Clapp gave messages daily about what was happening in the company. He created an internal newsletter and top management actually started walking the floors to be more visible to the employees.”
Three years later, times are better for Medical Mutual. But for others, the results aren’t always as positive.
“A lot of companies do front end work in delivering bad news,” says Cindy Cardwell, director of client services for Interim Career Counseling. “But changes aren’t planned well on the back end.”
In cases in which the changes include massive layoffs, those employees who remain with the company face yet another hurdle: navigating the three distinct phases change creates. How business owners deal with these phases, Cardwell says, determines just how successful an organization will be in the aftermath.
Endings
When the status quo ends, Cardwell says, your employees’ first reaction is to ask, “What about me?” She suggests managers be proactive and take the following actions:
1. Listen to the employees. Many may go through denial and be very concerned about the future of their jobs.
2. Accept their reactions. Don’t dismiss their concerns. “Don’t take their comments personally,” Cardwell suggests. “They’re often angry, upset and worried.”
3. Find builders. “There are always people in the organization comfortable with change,” she says. “Find them and solicit them to be leaders to help with the process.”
4. Communicate. Keep the lines of talk open and be willing to explain what’s going on whenever you can.
5. Keep people focused on the changes. Don’t let employees harp on the losses, Cardwell suggests. Get them focused on moving forward as a team.
6. Talk about the truth. “Always talk about the truth or you’ll never enlist good employees again,” she warns. “It’s very difficult to rebuild trust and relationships.”
Transitions
Once your employees have accepted the end of an era at your company, they will enter a neutral period in which they may not be sure what is expected of them, Cardwell says.
“This is where it’s time to set standards, because your employees need to know expectations. Their first question here is, ‘Where do I fit in this new arrangement?’”
She suggests getting employees involved in the troubleshooting process that’s sure to occur as the company undergoes changes.
“You’ll quickly find out who your leaders are,” Cardwell says. “And don’t let them hide. When enough key players get involved, it creates the momentum to carry the change process forward.”
New beginnings
This is high feedback time, when you test the new thinking and behavior, says Cardwell. It occurs after your company has finished making its changes and worked through the transition period.
“You start looking at the net effects and ask, ‘Did we cut costs effectively and meet our goals?’” she says. “People need new images, and you should celebrate successes and reward employees who helped get through the tough times.”
There’s a benchmark connected with change, Cardwell says, and that is the ability of you and your employees to be productive in a new context.
“Most important,” she says, “is your ability to carry the change forward. Many new beginnings get derailed and never get back on track because they were not followed through on.
“Whatever you do, don’t let the communications slow down.”
How to reach: Medical Mutual of Ohio, (216) 687-7000; Russell Rogat/Lee Hecht Harrison, (440) 331-4400; Interim Career Consulting, (440) 460-3210
Dustin Klein ([email protected]) is editor of SBN.
