Turning Negatives Into Positives - Communicate

I recently read how workers from Caterpillar in the UK joined in with management and agreed to go to more flexible working in order to save 300 jobs. It's that kind of open communication and joining in staff that will help combat downturns.

Face Reality Together

Downturns, recessions and credit crunches are not going to go away by not facing up to them and their consequences for your business or markets. Equally, if managers have hard decisions to make about the business, it really is no point in not using the power of the workforce to help understand what can be done. You would be very surprised at the results that can be achieved.

Trust is a vital component in leveraging the power of any workforce. Lose or abuse their trust and you will surely drive a divide between management and the staff that will be very hard to recover in the future. As BT may well find out, suddenly announcing the only way forward is to cull 6% of the workforce by March and possibly more in the future is about the worst way to announce to the staff, let alone the shareholders, suppliers and customers that there may be a problem in the business.

And that's the crucial word 'maybe'. To what extent did BT anticipate this problem and what could have been done beforehand to prevent such drastic measures that may end up in alienating the remaining workforce? The 'maybe' has turned into reality as BT 'Hit The Wall' rather than avoid it.

Joining in The Staff

It presupposes that management can understand that a downturn and recession will affect the business in some way - it always does but you would be surprised how many well qualified and experienced executives just deny it can affect them. It does, take it from me - and it could be positive but it is highly likely to be negative.

So often I hear people say 'There will always be a market for my product in good times and bad.' Tell that to BT. Reality is a swine, it really is.

So once management has come to terms with the fact there are things to consider, the next thing would be to start taking a detailed look across the business and understanding how well the business can cope with a downturn. How better to do that than ask those responsible for all parts of the business helping make that assessment and reviewing the results in order to clearly understand the problems. This way, the very same people can be part of the solution and responsible for it. If cuts need to be made, how better to identify where and how than the very people responsible for cost deciding what and how.

It makes the entire workforce joined in, bought in and accountable for the business well being. Better still, imagine if the right decisions are made and the company gets through the downturn - you will have the undying trust and loyalty of a workforce that would literally do anything for you.

Utopia?

It may be a Utopian view, but believe me, leave out the workforce in tough decision making and they will distrust you. That's not a good position in which to weather a storm like a recession. And when it comes to emerging the other side, just when you put the foot to the accelerator there will be little there as the remaining workforce start using the upturn as a time for bargaining.

My Advice

• Reforecast your business now - look at every deal in the pipeline, challenge it and check its validity
• Make sure you communicate the revised forecast widely, what the assumptions are and what that means to the business in terms of health, borrowing and costs
• Plan ahead - take a detailed look across your business
• Join in as many staff as you can - communicate the issues up front, make sure they understand what may happen if nothing is done.
• Make sure you plan and communicative early. Doing it too late disempowers people in being able to help. Don't use the moment to deliver a faite accompli
• Ask staff to quickly identify weaknesses, areas of cost saving or flexible working or different methodologies in order to make sure the business is able to withstand the pressure of a downturn
• Be realistic - look at all aspects of the business
• Listen to what people have to say as alternatives - don't make your mind up beforehand.
• Make sure you have a vision of where the company needs to be and when in order to take advantage of any upswing
• Make sure you have checked and rechecked your forecasts

Riding out a recession is hard enough. Make sure that workforce is on your side. Don't put the company in the hands of accountants who have no understanding of the long term and potential.

Above all, never, ever underestimate the power of your workforce and never abuse their trust. They have a habit of remembering at the most unfortunate of times.