Fear and Loathing in the Boardroom

Dealing with uncertainty in a Services Environment

Uncertainty can be a team killer. Economic contractions, while normal and to be assumed within expected events of the business cycle, can stifle the productivity of any team. In cases where the product or offering is specifically human based (i.e. services), the business unit can find itself suddenly running on no cylinders.

I’ve found employees crave security. The reason they are working for you instead of for themselves or going freelance is because of the security you can offer. The fact is they invest more than just their skills for the 40 hours/week they work. They invest their trust that the company will be able to afford to keep them on staff. This trust is shaken during economic downturns, or when rumors start hitting the cubicles of mergers, acquisitions or layoffs. Uncertainty basically equates to fear of the possible, increasing as that encounters the realm of the probable.

Ignorance is Bliss
I’ve been in companies that have been acquired. I was the first employee to know about it when it was still just a remote possibility, before any documents were even drawn up. We were in the middle of a couple of major projects, but I couldn’t let my team drop the ball as far as meeting deadlines go.

We compartmentalized the information so rumors wouldn’t start flying until the contract was signed. It was the right choice too. As soon as the team realized the company was being acquired, even if we had projects and work to do, the motivation just seeped out.
In these cases you keep as tight a lid on it as possible. If your team is scared, the business unit productivity is doomed.

Deal with the Gossip Girl
If the rumor mill starts going, it’s better to nip it in the bud and call a meeting. An open dialogue with the team that presents the actual facts may be in order. If their fears are warranted, and the rumors are true, but you need to keep them motivated, a gut reaction may be to lie, or at least put a fair amount of spin on the truth.
Here’s the potential problems with lying:

1. There are very few people who actually excel at lying. Most people have tells. You probably have a tell without knowing. If you lie to your team there’s a chance they won’t believe you.
2. If can pull off a good lie you will likely face significant fallout when the project ends and your team discovers the truth. Your credibility will be damaged and your ability to attract top talent in the future compromised.

A better approach may be to have the open dialogue where you address the facts and focus on keeping them motivated. Not all possibilities become probabilities. Applying some context to fears and placing uncertainty in its proper perspective will go a long way.

Motivation with loss of an Account
Tell them about other clients you’re working with and what work you see coming down the pipe from other clients.

Motivation with a slowdown of Work
Keep them from being idle with things that help the company that aren’t necessarily billable. Internal Projects, R&D, and skill upgrades are only possible when a client isn’t throwing a fit in the corner because they need a project completed tomorrow, so look at this as an opportunity to do necessary housekeeping and sell it to the team members that same way.

Motivation with an Economic Downturn
They are probably inundated with doom and gloom from news sources during a bear market. Don’t just tell them they have no reason to worry without qualification. Use examples, such as clients who are economic stalwarts (aren’t affected much by downturns or upturns), hedges (who are experiencing a boom in bad times, such as tech in this economy) and bellwethers (the first reactors to economic activity- to show that the tough spot may soon be over). This will show that the company is not in jeopardy, and they are not at risk of losing their job.
And in the end- if you have no choice but to lay them off…

Motivation before an Exit
Tap your network trying to find them a new job, and do what you can to make sure they still have an income after things end with you. If you’ve done everything you can then do promise outplacement help and glowing recommendations.

In conclusion- Management in good times is hard enough. Management when facing challenges is downright tricky. Remember that despite the stress it’s not good for anyone if you take out that stress on your team. Try to remember to smile and always speak positively to your team, management and clients.

Special Thanks to John Murray.