A Positive Workplace Means Leading In Tough Times

Over the past few weeks, we’ve seen dramatic changes in the financial services and credit markets.  The stock market has been like a roller coaster ride; business giants have failed with billions of dollars to the rescue, and more… As they work their way through this unprecedented economy crisis, senior leaders (across the board), here in Connecticut, the U.S., globally, and, especially Washington, D.C., face difficult choices in dealing with higher expenses, continuous media analysis, and the acknowledgment of the “R” word as a reality.

Whether we are solopreneurs, entrepreneurs or leaders/managers of small, medium and large, for-profit or not-for-profit organizations, we continually struggle with some key economic questions during these tough times:

• Should we cut fees/prices to maintain market share?
• How deeply can we cut costs?
• What about layoffs?

It’s a given that we need to be concerned with costs, margins, market share and the financial aspects of our businesses. But, there is much more…

Back in the September 2007 first edition of “Positive Energy,” I asked three big questions that I’m going to ask again:
1.  What business are you in?
2.  What really drives your employees? 
3.  Who’s really driving your business? 

Did you answer questions #1 with the product or service you provide?  Did you answer question #2 with the word “money?”  Did you answer question #3 with either your name or those of your senior management team?  If you did, you are not alone! 

Thinking about the economic challenges and leadership issues of recent weeks brought back some memories of evening classes at Sacred Heart University in Fairfield, CT as I pursued my degree in leadership studies. I learned so much about the many theories, types of leadership, characteristics and traits of effective, strong leaders.  When I heard a professor make the following statement: Without followers, there are no leaders, my “dimmer switch was really turned up” a few notches!  Novel idea – the people!  Once again, it’s all about the people-to-people connections, or as I call it the “P2P”!

In addition to understanding the financial aspects, effective leaders/managers also know how very important it is to include in those high priorities, the employees – the people who are really driving their organization. 

According to a recent article by Kim Slack, a methodology consultant at The Forum, as leaders, we need to ask ourselves some other key questions:

• How can I mobilize my employees to address the looming threats in the economic environment for the good of my organization? (P2P?)
• How can I discourage defensive internal politics that protect others’ narrow interests? (P2P?)
• How can I lead my company to emerge from the end of the downturn on an upturn?  (P2P?)

We know from history that economic downturns and recessions have tested the ability of leaders across the globe – in all sectors and in all industries. We learned that there are no easy answers!  However, I believe these past challenges have reinforced the importance of “sticking to the basics” in tough times.  Including a “people strategy” (P2P) in your business plans is a wise move because, without them, the plans would not be fully executed.

Here are three basic (P2P) principles that seem right on point for today’s challenges and worth revisiting. Some of you may be practicing these already; if not, it might be time to give them a try:

• Narrow the focus. (P2P) Provide the greatest value for key customers by setting priorities, aligning and deploying resources efficiently. Understand how your organization creates value for your customers.  Businesses that move quickly to reduce costs and control spending weather a downturn more effectively and are ready when the upturn happens. They also walk away from bad business/relationships while losers chase unprofitable sales and continue with win/lose relationships out of fear or in an attempt to hold market share.

Winners in a downturn narrow their business portfolios, focusing in areas where they can develop a clear lead – like continuing to develop the soft and hard skills of their front-line employees – the people who are really driving the business! As business guru, Howard K., says, “Train in the downturn; implement in the upturn.”

• Bring people together (P2P).  Strive to build a work group that counters the negative, toxic internal politics, so common when budgets are tightened. Negative politics saps valuable energy and focus. Employees begin seeing internal groups (and each other) as threats which then affects how they deal with (internal/external) customers, suppliers and external threats from competitors. Effective leaders understand the importance of increased communication and visibility in tough times rather than hiding in their offices to avoid questions or comments from the people. Employees must feel safe to ask questions and share ideas with their leaders. Leaders who are genuinely open to seeing things differently not only talk-the-talk, they walk-the-walk, by admitting they don’t have all the answers and by asking for their employees’ thoughts before they share their own. Leaders can empower their people to contribute their best ideas that might just help improve the work environment and the bottom-line!

• Manage the temperature of the organization (P2P). What does this mean?  In economic downturns and times of crisis, employees (followers) very often expect “strong leaders” to make the difficult decisions to protect them and the organization.  Many leaders are tempted to take things into their own hands and begin making changes themselves based on their own perspective and experience alone. Although, this may make everyone feel more comfortable and lower the “thermostat” temporarily, it is often a mistake. On the flip side, sometimes leaders must turn up the “thermostat” by drawing people’s attention to an issue knowing it may generate strong emotions. This decision may also be one that needs to be addressed to realign, reprioritize, and refocus the organization. Effective leaders attempt to get the complete picture, by gathering supporting data/information to help them gain buy-in from the ground floor up from the employees - and other key stakeholders.  This is a common sense strategy that leads to cooperation and support - up, down and sideways - in their organization. 

From Forum’s experience and research (and MJ’s), we know the following to be true:

1.  Communicate Authentically (Ah, my favorite word)
Tough times come and go; it’s a fact of business and life. Turbulent times create a climate of uncertainty and stress for leaders and followers alike.  It’s important that leaders manage their own stress and acknowledge the challenges they struggle with each day. It is not a sign of weakness; on the contrary, by acknowledging these issues, we build trust with followers and provide an outlet for their own feelings as they struggle with the same challenges.  (P2P!)

2.  Use Conflict to Drive Change (Change really can be a good thing)
Motivation and performance improve in the right climate – one which employees are engaged in addressing the significant challenges that face the organization. Leaders with a positive attitude, who are visible, communicate often and foster an open, honest environment, have a better record of retaining and motivating the employees, even when compensation is reduced.  Leaders who build alliances and work group coalitions rather than undermine and feed into negative politics will move things forward in a more positive, productive manner and will lead their organizations to improved performance and results.  (P2P!)

So, doesn’t it make sense that we, as employees at all levels of organizations, understand that leaders set the tone for the workplace environment that really drives employees?  Isn’t it commonsensical that we understand the role we play and really see the connection between the workplace environment and business results? 

You may be thinking, what’s your point, MJ?  What’s the bottom-line in all of this?  My point is…No matter what the industry or business sector “Positive Workplaces” are built on successful people-to-people (P2P) relationships.  The message is a simple one yet, difficult for organizations to implement and manage.  And, it all starts with the leaders…

The Big Question:  What is the single most important thing leaders can do in an economic downturn?  Answer: Create a positive vision and attitude with employees, customers, suppliers/vendors – while acknowledging the real challenges. How do you do this?  Come out of your office; interact with your employees, your customers, your suppliers/vendors; increase communication; talk (face-to-face) with the people – they make your business work each day; seek their input; show your authenticity and human-ness!  It’s all about “P2P”!

Kim Slack’s final Forum point:  “When leaders exercise discipline and focus by mobilizing employees to respond to customers’ interests and values, they increase the chance that, when the downturn ends, their company will come out on top.”

MJ’s final Positive Impact point: Customer service is not just a department – it’s an attitude!  A “P2P” attitude!  Whether you are in a customer-facing position, are serving those who are, or are a leader/manager in any part of the organization, your behavior has a direct affect on bottom-line results, either positively or negatively.  Remember to think of your employees as customers, too.

What is your customer service attitude?  (Click for self-assessment)

Bonus Article:
Thought you'd enjoy checking out my "Attitude" article on selfgrowth.com; The #1 Self Improvement Site On The Internet! Over 1 Million Monthly Visitors.

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Stay tuned for next month’s edition…

MJ Paris

P.S. Do you know someone who needs "Positive Energy" in their workplace? Feel free to forward this issue to friends, family and colleagues!

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About MJ

Mary Jane (MJ) Paris brings a broad base of experience in management, leadership and employee development gained from more than 25 years in sales management, retail banking, training, recruiting, project management, event planning and community leadership.
Her common sense approach and practical experience combined with her dynamic presentation skills provide a solid foundation for understanding her client’s needs and challenges.

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