Keeping Them Warm

Attempts are backfiring all over the place. Many managers recently cut costs to save the bottom line. And now they have low morale. Little loyalty. Lower productivity. Lower profitability too.

But they had no choice. What else were they to do? They had to make these seemingly cold cuts to save the business.

Agreed but

How is that other managers made the same cold cuts without reducing morale or loyalty or productivity or profitability?

The answer is usually in that word how.

Usually the second group of managers warmed things up by doing something like engaging the energy, creativity and knowledge of staff members in the creation and implementation of a cost reduction plan.

But even these managers arent totally safe. Things can turn cold quickly so they need to nurture this warmth they have kindled.

Here are 3 ways to do it.

1. Respond and deliver.

If you asked for input from staff like Sally did in Using All Your Strength, be sure to respond quickly (if not instantly) to all budget cutting ideas they submits. Tell the reasons each one was selected or not. Deliver on any promises made. Here is what Sally said in an effort to make expectations clear on this:

"Right now Im trying to come up with a long list of ideas as many as possible as wacky as possible. Id like your help generating that list. And then Ill have to cull through them and decide by Friday. Ill share my list with Bob and then with you at our next staff meeting."

2. Set a good example.

If you ask everyone to curtail spending on kumquats, you must do so as well.

Think they arent watching?

They are.

Like a hawk.

3. Communicate frequently (at least weekly) and positively (but factually) about progress being made.

This is easier for you and them, if you set a dollar goal the way Sally did in 4 Musts for Managing Tough Times.

If you dont keep them informed about progress, they will make up their own version of the truth. Or they will decide it is no longer important. Either way, you lose momentum for your cause.

And then if you have to announce pay cuts or layoffs out of the blue with no warning.

Hard for that not to feel like a cold cut.

On the other hand, if you are communicating the facts regularly, keeping people posted about the actions taken, the effectiveness of each, encouraging them to continue - and then you announce pay cuts or reduced hours or even a layoff still tough. But at least everyone is a bit prepared. And they know how much effort went into avoiding it.

***

So youve done your best to avoid pay cuts and layoffs but have to go that route anyway?

Maybe you think its impossible to keep things warm once youve made the very coldest cuts that you tried so hard to avoid.

Please dont stop now or you may be walking away from a hot opportunity!

Look for ways to keep them warm in, Warmth After Cold Cuts. If you dont find it right here on this site, please go to: http://www.managingtoughtimes.info where you can sign up for the complete Managing Tough Times series.