May 30

How does it feel?

download (1)There’s nothing like watching multiple, ongoing crises unfold to make PR bloggers happy. For us it’s like winning the Triple Crown.

First, there was Donald Sterling. Then there was GM. Now, we have the V. A. hospitals’ delays. And, each crisis has multiple, never-ending news cycles. That’s manna for reporters and Repman types alike.

In each of the three crisis cases, we’ve seen horrific responses and worst practice examples of how not to manage an unfolding event.

But, rather than repeat what’s already been said by countless others, I’d thought I’d address the other side of these types of mega-crises: the impact on the morale of the rank-and-file employees of all three organizations.

A serious crisis can be like a cancer that, if left unchecked, can kill an organization from the inside out. Sure, customers will bail. Stock prices will plummet and competitors will scoop up market share, but employee morale and productivity are fundamental to any embattled company’s survival.

I’ve counseled many clients over the years, and ensured that human resources specialists work closely with grief counselors, organizational behavior experts and, when appropriate, even motivational speakers to ensure innocent employees’ needs are addressed.

But many company management teams simply forget their employees when a CNN crew is outside corporate headquarters, a Senate investigation is underway or ESPN is providing 24×7 coverage.

To wit, I remember attending a cocktail reception in the immediate aftermath of the massive, 2008 market meltdown. I happened to bump into a friend who had worked at the now defunct Lehman Brothers. I asked him how he was holding up. ‘I’m ok,’ he said, ‘but my family is taking a terrible beating. My wife’s friends are ignoring her and my kids are being taunted at school. As for me, everyone always asks the same question: How does it feel to have played a part in destroying our economy?’

I’m sure a version of that anecdote is happening right now to the tens of thousands of GM employees who weren’t part of the massive, decade-long quality cover-up.

Imagine what it must be like to work at GM right now. I’ll bet you can hear a pin drop in the corporate offices. And, as far as the factory floors are concerned, you better believe stress levels are overheating faster than a broken down ’68 Buick on the Cross Bronx Expressway.

If GM is to ever turn things around, it’s critical they pay as much attention to the psychological and emotional needs of the employee base as they do to regulators, politicians and the media. Ditto for the VA Hospital. As for the L.A. Clippers, I guess their employees can get away with saying, ‘Hey, I worked for an ass. What can I say?’

So, as the GM and V.A. stories move forward, pay attention to the most overlooked part of any crisis story: employee morale. It’ll be interesting to see how each organization does, or doesn’t, attend to the needs of their most important front-line ambassadors.

If nothing else, management should provide employees with credible answers to the question, ‘So, how does it feel to work for (fill-in the blank).’

Dec 20

I bet no one’s yodeling at Yahoo these days

Today's guest post is by Peppercommer Danielle Rumore.

Sad-yahooWhen I read that Yahoo! had once again done another round of holiday season layoffs, I couldn’t  help but be reminded of Robert Fulghum’s “All I Really Need to Know I Learned in Kindergarten.” You remember the basic messages in that poem – play fair, don't hit people, say you're sorry when you hurt somebody. That type of thing. In today’s fast-paced, competitive world, I think it’s easy to forget or even dismiss the core point of kindness/do-unto-your neighbor in Fulghum’s poem. If you think about it, it really can be a template for how global business leaders should – but too often don’t – do business today.

I don’t pretend to know a single thing about what’s going on inside Yahoo (or at other companies beside my own), but it seems to me that when you lay off 5 or 10% of your staff around the holidays on a somewhat regular basis, something isn’t quite right inside your house. Worse still, companies that are perceived as quick to swing the ax (especially around the holidays) can get a reputation as being heavy-fisted and dismissive of their people without ever really fixing the underlying issues that plague their firms. When my firm represented Yahoo!, we experienced this iron fist mentality first hand. It’s a surefire way to bleed the good talent you do retain (it has happened at Yahoo!), and that leads to worse productivity still, and so on.

Well, maybe that’s just how I see things.

What I do know is that employees don’t respond well to fear or threats. It destroys morale, and scared or unhappy employees translate to poor-performing employees. This post isn’t intended to pick on Yahoo!, but the timeliness of its announcement couldn’t have come at a better (worse?) time.

Now, I’m not naïve nor am I a modern-day Mary Poppins. I’ve worked through two pretty significant recessions – the Dot Com bust and of course our most recent, ugly downturn. I understand (but definitely don’t like) the necessity of needing to cut costs and conduct lay-offs when these dark times come.  But even with these harsh realities and all the attention paid to cost cutting, being “lean” and global competition, I think leaders have lost sight of basic courtesy, kindness and respect for their most important assets – their employees.

My first boss in the PR world, John Bliss, was not only a savvy communications professional and a great teacher, but also a good man. He always said that an agency’s most important asset is its people – which he reiterated to his staff time and time again. He also said goodnight to each and every one of us every day before he left for the night. Every day. It was the little things that made us feel appreciated and also created a loyal and productive staff. That kind of mentality is about as common today as a landline, and it’s kind of sad actually.

To me, there simply is a right way of doing things and a wrong way. Do your lay-offs, streamline your business, reorganize the hell out of the place but then focus on cultivating, breeding and respecting the talent you do have. Treat them nicely, say thank you, recognize and reward good performance, ask them about their families and their interests. Some cookies and milk in the kitchen helps, too.

Most importantly, though, allow everyone to have a voice. Encourage your people to bring some outside thinking to their jobs. You never know where the next great idea will come from – and that great idea may just be the thing that sets your business apart. Then when the tough times come, your employees may just rally around you if they believe you have always had their backs.