Leading in Hard Times

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"Walking around the office more reinforces the message that we're all in this together," says Trachtman. "We talk about what's going on in the world, and what's going on with them and in their lives." Clifton, too, has made a conscious effort to be visible - despite the fact that her office is separated from the area where many of the company's employees work. "It's important that people know they have a leader, and feel that leadership close to home," she says.

8. Fear of flying? Give it time.
After September 11th, many people are afraid to fly. This can create problems for those companies whose employees tend to travel a lot. If you can't implement solutions like videoconferencing to reduce travel requirements, then you need to address the fear head-on. If you have employees who do not wish to get on planes, the first thing to keep in mind, says Trachtman, is to give it time. "We're not forcing anybody," he says. "If you can, find a substitute to go. Or delay the trip if you can." If it solves some of the problems, increase the acceptable drivable-window: if anything over a 2-hour drive used to mean flying, increase it to five or six hours of driving. If taking the train is an option, then suggest it to those employees who don't want to get on planes. Trachtman also recommends setting an example. ""I took the lead by getting right on planes after it happened," he says of the September 11th attacks. "In those first few weeks, travel was actually pretty quick and easy, because the airports were pretty empty. And I communicated directly back to everyone about how easy all those trips have been."

9. Show employees they are still valued.
If you have to reduce your workforce, or reduce wages, then it's important to demonstrate that your company still values employees. For example, Mann implemented a new incentive plan this past summer. The system provides additional compensation for employees when weekly billable hour goals are reached. It keeps employees focused on the company's performance, and how they each can contribute.

Shane implemented a variable compensation program this summer as well, after Lastar had a round of layoffs and cut wages across-the-board. He says the incentive program helped maintain morale. "Most employees intellectually understood that the wage cuts were intended to prevent further layoffs. But when it comes time to sit down and pay the bills, well, understanding it doesn't help get those bills paid," he says. "People understandably were wondering, 'Am I still valued by my company?" To show them that they were indeed valued, Lastar set up a variable comp plan for everyone at the company whose work has an indirect impact on the bottom line. "We wanted to give people a way to make those lost wages back," he says. "So we set up this program to provide financial rewards to employees if the company's performance improves."

At Calence, a Tempe, Arizona-based company that specializes in building and managing networks, CEO Mike Fong recently faced a tough decision. Although Calence, a three-time Inc 500 company, had avoided layoffs through what Fong calls "creative cost-cutting," times were getting tighter. So Fong told employees the company would be instituting a voluntary leave program that might be followed by layoffs. In the following days, several employees asked, "We don't want to have voluntary leave and layoffs -- why don't you cut my base pay instead?" Enough employees expressed this sentiment that Fong proposed a voluntary program in which employees could, for the fourth quarter of 2001, take up to a 10% pay cut in exchange for an equivalent amount of stock options in the company. Two-thirds of the company elected to participate. "Everyone was willing to pitch in," says Fong. "The company bought us time, and it was yet another employee-driven way that we got creative in order to save money without losing people. In fact, the majority of the cost-cutting we've done in the last year has all been a result of cost-cutting ideas that came directly from our employees. It's a part of the culture here, which is behind the fact that we have less than 2% annual turnover in an industry where the average is 30% a year."

10. Take note of the little victories.
It's the little things that make a big difference when times are tough: New business, new clients, improvements in sales numbers. At Mann Consulting, reaching the weekly billable-hours goals is reason to celebrate. "Setting short-term goals makes achieving them surprisingly attainable," Mann says. "People enjoy the little victories - it's a weekly satisfaction, it's tangible proof that the work they're doing is creating positive results. And that's a reason to celebrate."

Mann adds, "You have to find the things that will give the survivors of layoffs a sense of security. Because you can't enjoy victories unless they're set against a backdrop of security."

Copyright © 2001 Inc.com LLC

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