Company culture under pressure

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Creating a culture where people want to work is tough – especially in tough times. In my work, I have an opportunity to speak with many business owners and CEOs. But because I am not in the “trenches,” it is easy for me to write about building a culture, leaving a legacy and laying off the layoffs. It is another thing to be the person making these decisions.

This was driven home to me recently in conversations with various local CEOs. As I was talking about leadership legacy, one CEO said he felt his legacy had been destroyed since 2008. He said: “I have had to let go of so many people that we are down to the bone. We have cut the muscle and some of the heart out of the organization, and this is wearing me down.” The tone in his voice stopped me cold.

Another CEO told me: “The hardest thing we are facing now is the low morale because of the reduced pay and loss of benefits. In addition to an emotional toll, people are suffering physically, (and) personal time off continues to increase. This makes going to work hard every day.” I felt her pain, and I did not know what to say.

So I called a few “sages” I have interviewed in the past to get their opinions. Howard Behar, former president of Starbucks International, wrote the book “It’s Not About the Coffee: Lessons on Putting People First From a Life at Starbucks.” I asked Behar if he would change anything in the book based on these tough economic times. He told me he had been asked that question so often that he added a new preface to the revised version called “Leading Through the Hard Times.” However, Behar said he would not change any of the principles he was advocating. “Even in tough times, I still believe it is about the people,” he said. “It is people who have the creativity, energy and passion to move us forward.”

Then I called Wayne Cascio, whose research and consulting focus is on downsizing and responsible restructuring.

Cascio said that after layoffs, the question becomes one of “how to refloat the boat,” and he does not believe CEOs can do it alone. They need to involve their surviving employees as never before. They have to begin by defining a new business model and the culture to support it. He suggests that CEOs conduct company focus groups (e.g., employee breakfasts with the CEO), admit mistakes and ask for input regarding how best to move forward.

He said, “It’s all about making people part of the solution rather than looking at them as the source of the problem. It is easy to get caught up in viewing workers as costs and forget to remember the value they create.”

As a senior vice president at IBM told me last year, “When the water gets choppy, you don’t cut your motor,” and we are working in choppy, rough water.

Jann Freed (FreedJ@central.edu) holds the Mark and Kay DeCook Endowed Chair in Leadership and Character Development at Central College in Pella.