February 25, 2009	Volume 9, Issue 8
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Four Popular Ways to Mismanage Layoffs: Part II

by Rick Brenner

Staff reduction is needed when expenses overtake revenue. But when layoffs are misused, or used too late, they can harm the organization more than they help. Here's Part II of an exploration of four common patterns of mismanagement, and some suggestions for those managers and other employees who recognize the patterns in their own companies.

ith so many layoffs occurring in businesses all around the world, some are bound to be executed well, and some not. Knowing the common patterns of bunglers helps decision makers steer a better course, and helps others cope with the mistakes of the bunglers. Last time, we examined how the personal perceptions of decision makers lead to trouble. In this Part II, we look at two common tactical errors.

Death by a thousand cuts

To limit layoffs, and to reduce their visibility, management executes small reductions weekly or monthly, forgoing press releases. They might even deny the actions, saying, "We're operating normally, making continuous adjustments as is our usual policy."

But people recognize that layoffs are happening. Many worry they'll be next. They become increasingly determined to survive, even at the expense of others. Toxic politics emerges, wars and anxiety become common, cooperation ceases, and productivity plummets.

At its best, this method is a form of denial; at its worst, a form of procrastination. A more straightforward approach that deals with the consequences of layoffs openly is more likely to create positive internal politics. If your company uses the thousand-cuts approach, recognize that the relative safety you feel at first is probably an illusion. Prepare yourself.

Minimalism

The relief minimalism provides
usually isn't enough to
turn things around

To avoid laying off too many, management lays off the minimum number believed necessary to survive the current situation. They plan to revisit the decision later, and if corrective action is needed, they'll say, "The situation has worsened."

The relief minimalism provides usually isn't enough to turn things around. A little later, the cycle repeats. People remaining after the first action are shocked, but they're glad they personally survived. They recover after the first hit, only to be hit again. Recovery is slower and less complete the second time. After three or four rounds, morale and productivity are both depressed.

As a decision maker, be certain first that the projected effect of any layoff is substantial financial relief, and second, that the resources freed in this way are committed to expand that relief. As an employee, this pattern is a signal to you that the cycle might repeat enough times to eventually target you. After a couple of cycles, ask yourself, "Do I think our decision makers are capable of getting this right?"

Distinguishing a company caught in unfortunate circumstances from a company in trouble because of mismanaged layoffs can be difficult. But by examining how well its leadership responds to severe challenges to its survival, we can sometimes determine whether organizational survival is possible. When organizational survival is in question, voluntary departure or accepting a buyout can be excellent choices. First in this series   Top    Next Issue

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More articles on Personal, Team, and Organizational Effectiveness:

Corrales Mentales

Perhaps you've achieved every goal you've ever set yourself, but if you're like most of us, some important goals have remained elusive. Maybe you had bad luck, or you weren't in the right place at the right time. But it's just possible that you got in your own way. Getting out of your own way can help make things happen.

Running Your Personal Squirrel Cage

As Glen rounded the corner behind the old oak, entering the last mile of his morning run, he suddenly realized that he was thinking about picking up the dry cleaning tomorrow and changing his medical appointment. Physically, he was jogging in a park, but mentally, he was running in a squirrel cage. How does this happen? What can we do about it?

Dangerous Phrases

I recently upgraded my email program to a new version that "monitors messages for offensive text." It hasn't worked out well. But the whole affair got me to think about everyday phrases that do tend to set people off. Here's a little catalog.

Games for Meetings: Part II

We spend a lot of time and emotional energy in meetings, much of it engaged in any of dozens of ritualized games. Here's Part II of a little catalog of some of our favorites, and what we could do about them.

Decisions, Decisions: Part I

Most of us have participated in group decision-making. The process can be frustrating and painful, but it can also be thrilling. What processes do groups use to make decisions? How do we choose the right process for the job?

See also Personal, Team, and Organizational Effectiveness and Managing Your Boss for more related articles.

Coaching services

I offer email and telephone coaching at both corporate and individual rates. Contact me for details at rbrenner@ChacoCanyon.com or (617) 491-6289, or toll-free in the continental US at (866) 378-5470.

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Public seminars

Person-to-Person Communication for Project Managers

When we talk, listen, send or read emails, read or write memos, or when we leave or listen to voice mail messages, we're communicating person-to-person. And whenever we communicate person-to-person, we risk being misunderstood, offending others, feeling hurt, and being confused. There are so many ways for things to go wrong that we could never learn how to fix all the problems. A more effective approach avoids problems altogether, or at least minimizes their occurrence. In this very interactive program you'll learn a model of inter-personal communications that can help you stay out of the ditch. In those moments of intense involvement, when we're most likely to slip, you'll have a new tool to use to keep things constructive. Read more about this program. Here are some upcoming dates for this program:

• Download to
  your calendarThe Machine Shed, 11151 Hickman Road, Urbandale, IA 50322: February 16, Breakfast Meeting, Central Iowa Chapter of The Project Management Institute. Register now.
   
• Download to
  your calendarThe Hotel Fort Des Moines, 1000 Walnut Street, Des Moines, Iowa 50309: February 16, Lunch Meeting, Central Iowa Chapter of The Project Management Institute. Register now.
   
• Houston, Texas: May 8, Monthly Meeting, Houston Chapter of the Project Management Institute.
   
• Houston, Texas: May 9, Monthly Meeting, Houston Chapter of the Project Management Institute.
   

The Race to the South Pole: The Power of Agile Development

On 14 December 1911, four men led by Roald Amundsen reached the South Pole. Thirty-five days later, Robert F. Scott and four others followed. Amundsen had won the race to the pole. Amundsen's party returned to base on 26 January 1912. Scott's party perished. As historical drama, why this happened is interesting enough. Lessons abound. Among the more important lessons are those that demonstrate the power of the agile approach to project management and product development. Read more about this program. Here's an upcoming date for this program:

• Download to
  your calendarSt. George Banquet Hall, Kitchener, Ontario: March 6, Dinner Meeting, Canada's Technology Triangle Chapter of the Project Management Institute. Register now.
   

Human-Centered Risk Management

Most of us can assess technological risks, but risks related to human behavior tend to resist our best efforts. This session provides a framework for evaluating risks related to the behavior of individuals, teams, organizations and people generally. Human-centered risk differs from technological or market risk, because objective evaluation requires acknowledging personal and organizational limitations and failures. Since some of those limitations and failures might apply to the people assessing the risks, or to their superiors, there's a tendency to deny them or to explain them away. Our approach examines capability, organization, context, risk mitigation, and workplace politics. It has tools for guiding the assessment and management of human-centered risk, and we show how to extend these tools to suit your situation. You'll learn how to identify sources of risk in human behavior; recognize systemic and individual barriers to acknowledging risk; assess the effects of organizational turbulence; determine the risk associated with inappropriate internal risk transfer; estimate the effects of team dysfunction, toxic conflict and turnover; and measure the impact of workplace politics. Read more about this program. Here's an upcoming date for this program:

• Download to
  your calendarMITRE, in Bedford, Massachusetts: March 20, Monthly Meeting, Boston SPIN. Register now.
   

The Race to the South Pole: Ten Lessons for Project Managers

On 14 December 1911, four men led by Roald Amundsen reached the South Pole. Thirty-five days later, Robert F. Scott and four others followed. Amundsen had won the race to the pole. Amundsen's party returned to base on 26 January 1912. Scott's party perished. As historical drama, why this happened is interesting enough, but to project managers, the story is fascinating. Lessons abound. Read more about this program. Here's an upcoming date for this program:

• Columbia, Missouri: May 17, Full-Day Workshop, Mid Missouri Chapter of the Project Management Institute.
   

Project Management in Fluid Environments

Most people now work in environments that can best be characterized as fluid, because they're subject to continual change. We never know what's coming next. In such environments, managing — teams, projects, groups, departments, or the enterprise — often entails moving from surprise to surprise while somehow staying almost on track. It's a nerve-wracking existence. This program provides numerous tools that help project managers who work in fluid environments. Read more about this program. Here's an upcoming date for this program:

• Columbia, Missouri: May 17, Monthly Meeting, Mid Missouri Chapter of the Project Management Institute.
   

The Politics of Meetings for People Who Hate Politics

There's a lot more to running an effective meeting than having the right room, the right equipment, and the right people. With meetings, the whole really is more than the sum of its parts. How the parts interact with each other and with external elements is as important as the parts themselves. And those interactions are the essence of politics for meetings. This program explores techniques for leading meetings that are based on understanding political interactions, and using that knowledge effectively to meet organizational goals. Read more about this program. Here's an upcoming date for this program:

• Rochester, New York: May 24, Professional Development Day, Rochester Chapter of the Project Management Institute.