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Shorts: After the Layoff
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Andrea Corney
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Nov 04, 2001 20:01 PST
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Welcome to the November issue of Management Shorts
Written by Andrea Corney (ACor-@acorn-od.com)
Published by Acorn Consulting (www.acorn-od.com)
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IN THIS ISSUE
1. INTRODUCTION: The Layoff Epidemic
2. MANAGEMENT SHORT: After the Layoff
3. FOR THOSE WHO WANT MORE: Resources on Handling Change
4. A FINAL WORD: It's Not Just About Layoffs
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1. INTRODUCTION: The Layoff Epidemic
Layoffs have become so common this year that it is unusual to meet a senior
manager who HASN'T had to manage a reduction in force (or isn't in the midst
of planning one right now). The decision to do a layoff and the choice of
who to lay off can be so wrenching that many managers have little energy left
for thinking about what happens after the layoff. How do you help the
shell-shocked survivors to recover and move forward in a productive way?
This month's newsletter is a reflection on recent experiences with clients
and my own learnings on what seems to work.
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2. MANAGEMENT SHORT: After the Layoff
THE PROBLEM
A layoff is always a shock to your workforce. Even if they knew business was
bad and that something needed to be done, the reality is always a shock.
Among the "survivors" there is almost always a sharp drop in morale and a
corresponding drop in productivity. Just when you need everyone to pull
together and focus on rebuilding or retrenching, people are losing focus,
getting sick, and spending inordinate amounts of time talking at the water
cooler or just staring into space. You may become the target of employee
anger and distrust, and you start to worry that your top performers may be
brushing up their resumes and looking for a more stable job.
So what can you do?
HAVE PATIENCE
One of the most valuable things you can do is to just understand and accept
what people are going through. Have a little patience to let them work
through what has happened. In most cases you've known about the layoff
longer than your people and have a head start on your own adjustment. Don’t
expect others to be on your timetable.
TRANSITION MODEL
A layoff is a big and sudden change and the standard principles of "change
management" apply. My favorite change model is a very simple one developed
by Bill Bridges. He makes a distinction between "change" and "transition".
"Change" is the external event with a clear before and after. One day things
are fine and then a layoff is announced. One day we are all going about our
business and then two airplanes plow into the World Trade Center. The towers
are there and then they aren't. You work in a company or department of 40
people and then there are only 25. These are external changes.
"Transition" is the internal psychological journey we each go through as we
incorporate the external change into our frame of reference. In the case of
a layoff the reactions may be similar to the classic emotions of grief:
shock, denial, anger, bargaining, depression and (hopefully) acceptance.
One way to understand this journey is Bridges' 3-stage model: (1) Endings,
(2) The Neutral Zone, and (3) New Beginnings. It may seem odd that a
transition model starts with "Endings", but the past we know is always more
real to us than the uncertain future. Even a good change involves some loss
and we need to acknowledge what is lost and let it go. For some employees it
is the daily interactions with co-workers who are now gone that they miss the
most. For others it is their beliefs and expectations about the company's
future and their own role in that. In the case of the World Trade Center
attacks it is not only the physical changes to lower Manhattan, but also the
expectations we all have about our personal safety and the role of the U.S.
in the global arena. It is an important first step to recognize and name
what we have lost.
The next stage is The Neutral Zone. I think of this as Moses and the Jews
wandering in the desert for 40 years after leaving Egypt. They had to make
the transition from a slave mentality to one of a free people before they
could be ready to build a new home. What looks like aimless spinning (or
wandering) is a time of reorienting ourselves to a new reality. "How have my
job responsibilities changed? Can I live up to the different expectations of
my boss? Do I believe that the cut backs and other changes will really
improve the company's long term prospects? Can I be successful or happy in
the new order? How do I do that?" The old way is gone and I have to find a
place for myself in the new order. All of this takes time. If someone tries
to rush me and tells me to "snap out of it" I'm likely to feel angry or
guilty (or both) and expend even more time and energy trying to cope with
those feelings.
The third stage, New Beginnings, is the stage we are all eager to get to. It
represents an inner realignment and commitment to the new reality. The
paradox is that the more we try to leap into this stage, the longer it
actually takes. People need to move through the first two stages fully in
order to really arrive at the final stage. The transition happens for
different people in different ways and on different timetables. It can't be
rushed, but it can be helped along. You help it along by creating time and
space for people to work through the first two stages.
I shared this model with a work group one week after a substantial layoff had
been announced and implemented. The model was a relief to many of the
employees as reflected in this comment: "This model articulates exactly what
I've been feeling all week!" It validated their feelings, relieving their
sense of isolation and personal failure AND giving them hope that the current
feelings of malaise would eventually pass. Seeing the path in front of them
represented by the 3 stages actually INCREASED their energy and motivation.
SHARE AS MUCH INFORMATION AS YOU CAN
At one post-layoff meeting management did something that was both courageous
and very effective -- they opened the books wide open and shared everything
with the employees. They showed the monthly burn rate before and after the
layoff as well as how much extra "runway" had been bought with the layoff.
They opened up the process and reasoning of the decision to implement a
layoff as well as the choice of who to layoff. Employees later said they had
been very surprised and pleased with so much information. In their minds it
gave great credibility to management's claims that they believed the company
could survive and be successful.
Management also talked a lot about the future: They were very specific (and
realistic) about what needed to happen to raise the next round of funding.
They talked about future scenarios and what they would need to do in each
eventuality.
All of this information helps people navigate through the Neutral Zone. The
shock of the layoff has suddenly made the future seem very uncertain. If I
am one of the surviving employees, the layoff has made me feel powerless. I
need a information to help me figure out what role I play in the new reality
and what I can personally do to help the company get back on track.
MAKE SPACE FOR PEOPLE TO TALK ABOUT THEIR FEELINGS
Layoff survivors frequently talk about how isolated and disconnected they
feel. Their sense of connection has been broken and they want very much to
recreate a sense of camaraderie with their co-workers. It doesn't take
anything fancy to help them do that. When I start a meeting with a group of
layoff survivors I ask everyone to sit in a circle and we do a go-round with
each person taking a few moments to talk about whatever is on their mind and
what they'd like to get out of the meeting. Throughout the day I go back to
this format. You can see the relief on people's faces when they hear that
others are thinking and feeling the same things. This allows people to
acknowledge and say good-bye to the things that are lost -- something they
need to do before they can start to think about the future.
Some managers worry that this is just "wallowing" and will stir up anger or
just make things worse. I've never seen that happen -- it is usually just
the opposite -- once they acknowledge what is ending, the discussions quickly
turn towards the future. The participants help each other find a sense of
hope and something positive to move towards.
YOU DON'T HAVE TO HAVE ALL THE ANSWERS
You need to solve the business problems that necessitated a layoff in the
first place and you need to help the layoff survivors get through the shock
and refocus on the work in front of them, but you don't have to figure out
how to do either of these by yourself! Asking your people to help you with
both these tasks will yield two benefits: (1) The collective wisdom of the
group will often generate solutions that you never thought of; and (2) The
act of problem solving will help people feel they have some control over
their own future -- a key step in the process of making the transition to the
new reality.
I worked with a start-up recently that had just laid off a third of the
workforce. At an all-day meeting management had laid out two key milestones
that the company had to achieve. The entire group brainstormed the key
issues that would have to be addressed to meet these milestones and then
generated potential solutions. One of the issues was the need to get back to
the high level of teamwork they had had in the early days. After much
discussion they came up with several very practical ideas including a daily
"stand-up" meeting. They would start each day with a 9:00 meeting with
everyone standing in a circle and taking turns sharing what they would be
working on that day and what they would need from others to complete the
task. We timed it and found it could be accomplished in 7 minutes flat.
This simple tactic generated a substantial level of energy and excitement.
The point here is not that every group should have a daily stand-up meeting.
The point is that neither I nor management would have come up with this idea
on our own and yet it was just what this particular group needed.
BE PREPARED FOR SOME EMOTIONAL TURMOIL
Recognize that people are actually in shock and may behave in
uncharacteristic ways. Expect someone to act out or blow their top and don't
be too surprised if it is YOU. You've been busy managing the layoff, trying
to get the company back on track, solving problems left and right -- pushing
aside your emotions while you focus on the work. Be forgiving of yourself
and others when this happens (and don't forget to apologize personally to
anyone who got in the path of your outburst). Emotional turmoil is all part
of the process -- think of it as a positive step toward the New Beginnings
Stage.
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3. FOR THOSE WHO WANT MORE: Resources on Handling Change
Bill Bridges has written a number of excellent books on the Transition
process. My two favorites are listed below.
Bridges, William, "Transitions: Making Sense of Life's Changes",
Addison-Wesley Publishing Company, Inc. ” 1980
Bridges’ first book focuses on individuals going through major life
transitions.
You can order this book from Amazon through the link below:
<A HREF="http://www.amazon.com/exec/obidos/ASIN/0201000822/acornconsulti-20">
http://www.amazon.com/exec/obidos/ASIN/0201000822/acornconsulti-20</A>
Bridges, William, "Managing Transitions: Making the Most of Change",
Addison-Wesley Publishing Company, Inc. ” 1991
Focused on change in the corporate setting, this book is shorter and written
for managers.
You can order this book from Amazon through the link below:
<A HREF="http://www.amazon.com/exec/obidos/ASIN/0201550733/acornconsulti-20">
http://www.amazon.com/exec/obidos/ASIN/0201550733/acornconsulti-20</A>
I have a short PowerPoint summary of Bridges' Transition model that I use to
introduce the concepts to clients. E-mail me if you'd like a free copy.
(ACor-@aol.com)
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4. A FINAL WORD: It's Not Just About Layoffs
I've focused on layoffs in this newsletter, but the issues and tactics
discussed here apply to any significant organizational change. What has
changed recently in your company or work group? Who has lost and what have
they lost as a result of the change? Who could use some support as they
wander through the Neutral Zone?
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Please forward this newsletter to colleagues and friends who could use some
support in coping with a layoff or other organizational change.
As always I welcome your feedback on this newsletter. I'm particularly
interested in your own insights about coping with a layoff. Do the
reflections in this newsletter match your experience? What was different for
you?
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Warm regards,
Andrea
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About Management Shorts
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Management Shorts is a free monthly newsletter on strategic planning,
leadership, management and team work. Each issue brings you a short and
practical tool or idea that you can put into practice immediately.
Copyright 2001, Acorn Consulting
Forward this newsletter to friends and colleagues. You may reprint this
newsletter in whole or quote with attribution to Andrea Corney and Acorn
Consulting.
Back issues are available at http://www.topica.com/lists/shorts/read
To subscribe: send a blank e-mail to shorts-s-@topica.com
To unsubscribe: send a blank e-mail to shorts-un-@topica.com
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About Acorn Consulting
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Acorn Consulting works with management teams that are struggling to get
traction on strategic planning and other complex issues. To learn more about
our services visit our web site at www.acorn-od.com
Acorn Consulting
"From Strategy to Execution:
Helping Management Teams Get Traction on the Critical Issues"
www.acorn-od.com
in-@acorn-od.com
(650) 329-8923
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