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How to communicate tough strategic decisions to your stakeholders?


Have you ever been in a situation where you needed to layoff someone? Or imagine yourself in a situation like Yahoo!, when their CEO resigned and no one knew where the company was going. How would you have handled that situation as a leader? No matter how hard you try to keep your employees safe from the corporate decisions at the top, sometimes those decisions will affect your employees regardless of your efforts. So, how will you handle those situations? In this blog, I will provide you with few pointers through which you can communicate these tough decisions to your employees very easily.

Announcement meeting: After a decision has been made, the communication to the outside world and the larger community of workers has to be handled with firmness, transparency and candor. Let’s say, your CEO resigned, and you only communicated the news through an e-mail. Chances are……….your employees will have lot of questions about the company’s future, and there is no interactive way to address those concerns. Thus, I would recommend you to have a conference call (or a meeting) with your line managers, before various rumors start churning. And yeah! While doing this, provide them the opportunity to ask their questions. Answers to their questions will make your strategy clear in their minds, and hence, they would be able to communicate that to their employees very easily. Encourage all of your line managers to have a quick sync-up meeting with their employees to communicate this decision with their employees. If possible, have a company-wide hands-on meeting 2-3 days afterwards.

Communicate with media: Imagine, if your company had a big layoff, and you heard about this news from the media. How will you feel in that situation? In the similar manner, your employees will feel cheated, if they heard this kind of a news from the media, instead from their supervisor. And hence, it is very important to communicate these decisions within your organization, before you go public. News conferences and news releases should be given only after talking with the staff . The staff should not read about it first in the media. You need to also make sure that the media doesn’t hear about this news from the grapevine. Thus, you should keep a very small time difference between notifying this news to your employees and the media.

Notify other stakeholders: If you are laying off few people, then you might want to talk with relevant governmental agencies to notify them about the decision. If your company buys any kind of an unemployment insurance, then you definitely want to make calls to those insurance providers for notifying them about the situation. If your decision is affecting any of your commitments to your customers, you might want to talk to them immediately. Obviously, you need to notify your customers, suppliers and the community leaders through an e-mail and/or a conference call. And yeah! Don’t forget to define your future plans in your communication. I have seen many notification e-mails with the description of the problem without any clear path for the future. So, do yourself a favor, and define your future path before you go ahead with any of these communications.

I hope, these tips will help you to communicate any tough strategic decisions to your stakeholders. If you have any other ideas through which we can communicate these kind of news through transparency and sensitivity, then please feel to share it with me here.

Thanks. – Bhavin Gandhi.

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Posted by on October 29, 2012 in 21st Century, Leadership, Management

 

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Why should you listen to your employees while taking tough decisions?


It is never easy to deliver the bad news to your employees, but bad things can happen to any companies. Sometimes, few external factors like economy or exchange rate can affect your company’s bottom line. And at that time, company’s very survival might be at stake. And hence, you might be put in to the situation, where you have to take those tough decisions as a company’s executive. The primary challenge during these situations is – Communication. If handled incorrectly, you might risk of losing your employee’s trust and tumbling their morale. In this blog, I would like to share one of the success story, where listening to employee’s input while taking these tough decisions have helped the company.

While taking tough decisions such as layoffs, restructuring, outsourcing, etc.; you should involve your stakeholders in the planning and implementation stages. You might not be able to involve all of your employees while taking these tough decisions, but you should at least engage your senior management and department heads in the consultation process. Depending on the situation, you might want to keep employees/employee representatives apprised of the situation to avoid any surprises. On various occasions, this strategy might prove to be helpful.

Take this company for an example (company X), where I recently consulted them for downsizing. Company X had really bad financials. It was clear that they had to cut down two of their product lines, which were not performing at all. And hence, they had to layoff few of their employees due to tumbling financial situation of the company. So, instead of announcing few layoffs, the CEO announced voluntary retirement program and some pay cuts. Surprisingly, I was able to collaborate with majority of their employees and get them to agree upon a pay cut and retraining program. As a result, we didn’t need to layoff anyone. Though this was a success story, it might not work for everyone. But one thing is clear. If you are willing to share information with your employees, they will not only value your decision but they might also come up with a plan to handle the situation better.

I hope, this example can inspire you to consider your employee’s input while taking these critical decisions. Have you ever encountered similar situation like this? Are you aware of any workplace/organization that considers their employee’s input before taking tough decisions?

Thanks. – Bhavin Gandhi.

 
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Posted by on October 24, 2012 in 21st Century, Leadership, Management

 

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