It’s Back to the Future Again... Life After the GFC

Congratulations everyone!! The Global Financial Crisis is over and we can all relax and look confidently to the future…yeah right! What’s really going on in organisations? Why should we boldly ‘go forth and multiply’ (grow) when we’re just getting over the worst economic conditions of the last four decades?

Latest results from L.E.A.D. suggest that the worst of the Global Financial Crisis has passed, at least for now, and that we should get back to the future. But a closer look suggests a bit of caution might be best until things really start to rebound and life returns to normal (or the new normal).

Looking at the forecasts of thousands of employees, managers and leaders, things are likely to return to economic normality in 2010 if they haven’t already done so.

To the question:

"At what point will the economy return to a more normal position in your country?"

• 68% of employees think this has already happened or will do so during 2010
• 71% of managers feel the same way, and...
• 73% of business leaders and senior managers concur

So we can all relax and thank our respective gods that we lived to tell the tale, right? Go about our business as if nothing ever happened, sure?

Well no, not really... there is unfinished business to be done.

In difficult times, a large number of unusual behaviours become evident. Leaders take prolonged and intensive ‘looks at themselves'... they navel-gaze until solutions begin to appear before them.

They reduce costs... they don’t replace staff that leave…they review staffing levels and budgets and they send a clear signal that there will be no pay rises in the near future. They might even stop overtime, rearrange shifts, and enforce a shorter working week.

Then the storm passes and the dust settles. Phew, we got through it! Right, back to work.

All eyes suddenly turn to the boss to set course for the next adventure. And all too often, the boss, having lived to tell the tale (and sporting the scars to prove it!), doesn’t know where to turn to next. "Why can’t things just go back to normal?"

Getting through an economic downturn is akin to throwing all the management balls into the air, hoping some won’t come back down, wishing they take their time returning, and praying that those that do come down land softly. In the period immediately following upheaval, there is a stronger need than at any other time for managers and leaders to LISTEN, PLAN, SHARE, and ACT.

Middle managers and employees will be looking for signals about their future, and the future of the organisation. Listen to the way staff talk, and the clues they give as to their state of mind. Empathise with their circumstances and situations, work to understand what they need from the organisation.

Then prepare a plan - an individual plan for each staff member and talk to them about it, involve them in developing it. Once you have plans, share them with the individuals and, at a broader level, with the wider team. Then act swiftly and consistently to bring certainty to the organisation and the individuals within.

If there is no empathy, clarity or confirmation, people start looking elsewhere for a more certain future. Knowing that job security is a key motivator of employee performance and that clear communication is a key characteristic of good managers and leaders, the onus is on the bosses to set the scene, to reassure, and to ensure each and every employee knows what the future holds for them.

If there is no ‘moment of truth’, no recalibration of the vision and goals of the organisation post-crisis, and no communication, people will be left to fear the worst... and act accordingly.

As L.E.A.D. has consistently shown in recent times, there is an enormous store-house of employee trust that leaders and managers can tap into in order to provide much needed clarity.

Four key actions you can take post-GFC

What can you do to make the most of this post-GFC period and secure the organisation’s future?

1. Take the time to LISTEN to what people have to say and empathise with them – what are their needs, what will motivate them, what will engage them and secure their future involvement with the organisation? Work hard to understand how people are feeling as a result of changes they’ve had to make to deal with the GFC and the implications of these changes on their commitment to the organisation.
2. Work with them to develop a clear PLAN, for each individual, which will give them a clear sense of their future and their role in the organisation. It will also ensure you know how best to create the workplace environment that retains rather than loses talented people.
3. SHARE the plan and the vision you have for them and for the wider organisation. Communicate clearly and identify expectations – yours and theirs. Look for signals that the vision is understood and will engage people at the individual, team and organisation levels.
4. Invest time to ACT on the individual plans and work closely with each person to execute the plan. By fulfilling the expectations of staff and "living the promise" fewer people will seriously reconsider their future and look elsewhere for satisfaction of their needs. Make sure your attitudes and behaviours reflect the plans and are aligned to the desired values and outcomes.

Remember, in that period immediately following a crisis or an intensely unusual period, it is the people who settle fastest, take stock and develop the new normality who will succeed.

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