If you saw the movie, “Up in the Air” recently, no doubt it left you pondering the various ways organizations handle restructuring and downsizing. Seems like I’ve run across a several articles recently on the subject… What precedes and follows a downsizing decision is as critical as how it is carried out; turnaround consultant Terry Mather talks about “mentoring change” [by] “making changes to ensure the company is operating at a higher level, adapting to the economic and competitive environment it faces and preparing for the future.”
Though I adore George Clooney’s acting, it’s because he did a good job in the “Up in the Air” role that the viewer was left aghast at how some companies go about downsizing. In real life, what HR person hasn’t sat with managers to deliver this type of bad news? It helped to read “Don’t Let Layoff’s Eclipse Your Love of HR” with comments by Ron Katz and others. And this article from Deloitte addresses leading organizations through transition, especially when restructuring as a result of mergers, emphasizing preparing leaders to navigate the creation of a stronger organization. Michael Teasdale offers a good short list on how to maintain morale and engagement during organizational re-structuring, making the point that, “Effective leadership is vital in realising the potential value of mergers and acquisitions.”
Remembering to invest in developing talent, even after a downsizing, is key to morale; I found a good example from Butler Construction who demonstrated their talent development investment just after a staff reduction. This article in the Washington Post emphasizes the importance of leaders being visible during change to minimize anxiety.
If you heard George Clooney’s character’s speech in “Up in the Air” he talks about getting by with what you can take in a backpack (this guy travels light, but you’d have to see the movie for more about that). Metaphors aside, your talent can pack their skills in a backpack (literally or figuratively) and direct their best energies elsewhere; make sure you retain and engage the talent most critical to business sucess. For an impressive example of working what’s good for people into the fabric of the organization, see the webcast and related e-Briefing about Best Buy- Retail Career Development and Retention: Inplacement to Outplacement. When downsizing is needed, Best Buy's Career Services posts jobs outside of the company on their own website to help people through voluntary attrition, and they feature the happy endings of what alums end up doing elsewhere. At Best Buy, "offboarding" is part of career services and merits as much attention as onboarding and career planning.
A few decades ago when I was starting out in my HR career, I was sent by a corporate HQ to a coal subsidiary with a briefcase full of severance checks to hand out with the VP of HR once a merger went through. When I arrived the VP confessed he wasn’t up to facing all those people who he knew all too well. I wasn’t George Clooney, nor his sidekick in movie, Natalie, and in my circumstances these people already knew their jobs would be over after the merger; but I was the one to hand out those checks, and I’ll never forget it.
No doubt you'll face an aspect of business restructuring at some point. HCI has a Communities track dedicated to Career Transition Management including a live webcast coming up on Feb 25 Managing Transitions: Facing an Uncertain Future in The New Business Reality -- check it out for lots of good ideas if you find yourself in a restructuring situation.
Photo: Jon Haynes "I Got Fired"
