What execs are thinking…
One of the places I go to, both in person and online, to metaphorically insert the business mood thermometer is Critical Eye the professional executive network. Matthew Blagg, their CEO wrote a note yesterday that I think should be brought to the attention of more than just Critical Eye members – I reproduce below – comments?
The issue of motivation in the downturn has recurred in my dialogue with Criticaleye Members and most recently at our Advisory Board meeting. In the shadow of cost-cutting and making redundancies, how do leaders rally energy and enthusiasm in the workforce to boost performance and drive strategy?
What is clear from the conversations I have had over the last few weeks is that maintaining motivation requires a strong sense of clarity and alignment from the board and the need for tighter, more controlled approaches to running the business and managing costs. When successfully demonstrated to staff, both these activities will boost employee confidence in and respect for senior management which, ultimately, will increase motivation and morale.
To instill confidence and motivate people, boards need to be passionately aligned to the company’s direction, its goals and its values. However, they need to do this without articulating long-term plans. In an uncertain economy outlining goals which do not come to fruition can damage employee commitment and motivation, but communicating a message of control, strength and clarity at a senior level will certainly inspire confidence in the ranks. Stephen Karle, former CEO of West Bromwich Building Society offers this advice: “As the pressures on businesses and individuals mount, it will be motivational to increase management emphasis on the values of the organisation. For many, it will be tempting to cast aside the previously positive aspects of the culture and to act with brutality in implementing hurried cost-cutting and change programmes. Consider explicit recognition programmes. Reward staff who contribute to the organisation’s fight-back, whilst conducting themselves in line with the desired culture.”
Jeremy Small, Group Company Secretary for AXA UK Ltd., also offers words of advice: “Motivating employees in these difficult economic times is very demanding. When listening to people’s concerns, it is tempting to over compensate and try to give everyone comfort. As leaders, we need to be realistic as to the assurances that we are able to give and to be very open and clear as to what we don’t know. Every crisis presents opportunities on many different scales and we all have a role to play in identifying and helping to realise them. That way, we can position our companies and ourselves better for when the tide turns.”
Individuals also want to see a board that is taking a hard line on cost control and stepping up efforts to create a performance culture within the organisation. When people believe they are working within this environment they will have a greater belief in the strength and longevity of the company which, clearly, counts for a lot in the current climate.
Maintaining access to professional development is another motivational driver in difficult times, not least because upskilling will make the difference to how well you are able to weather the storm. However, development should be in line with operational circumstances. So in a downturn, it is not about sending people out of the office on expensive courses but finding smarter ways for them to obtain skills and experience which will grow the business. Younger managers especially are looking to develop so finding ways to expose them to the difficult and changeable nature of an economy in downturn can provide a valuable and unique learning opportunity. Indeed, the current economic climate could offer younger staff the stimulus they need without drastic increases to the HR budget.
