Next to people, communication is the most critical element to success whether you are in a growth mode or you are facing difficult economic times. However, when times are tough, failure to communicate has much greater consequences. Ineffective communication can accelerate failure in general. Communication is essential to developing trust. Trust is necessary to get people to reach down deep inside and give everything they have under the most difficult circumstances.

Colin Powell stated in an interview that as a young twenty-one year old lieutenant he was still trying to figure out the whole concept of mission and people when a crusty old Master Sergeant said to him:

"Let me make it clear for you, Lieutenant, so that you never ever doubt again what leadership is all about. Now, listen carefully. I ain't gonna repeat it. A good leader is someone whose troops will follow him, if only out of curiosity."

Communicating During a Restructure

You gain trust when people think you care as much about their welfare as you do your own. This is an especially difficult task when the economy isn't cooperating and you have eliminated jobs. That is one of the reasons that it is critical to act swiftly when implementing restructuring plans during tough economic times. It is important to create a big enough shock wave to immobilize the old culture, but you must convince the survivors that they are the keepers and you will all succeed together. Leaders are respected for discipline. Survivors will recognize that terminating people is part of the job if you gain their respect. They will view your decision as a sacrifice of part to protect the whole. Choice is critical. Employees that are C players must not make the cut. Removing non-contributors and disruptions due to poor performance is in fact to the benefit of those who remain.

WARNING---Do not under any circumstances keep an employee that is obviously a non-performer due to politics, tenure or relationship with the owner or anyone on the executive staff. This can countermand every honest effort and sincere communication made. It also sends a message of a lack of honesty.

The effectiveness of a true leader is not measured in terms of the leadership he or she exercises. It is measured in the leadership evoked. It is not measured in the decisions made, the costs cut, the plans made. It is measured in terms of the growth in confidence, sense of responsibility and acceptance of accountability by the employees that are a result of that leadership.

"The final test of a true leader is that they leave behind in others the conviction and will to carry on."

Leadership and communication help create solidarity. Solidarity implies a unity within a group that enables it to manifest its strength and exert its influence as a group. The very first step required after a restructuring process is mass communication. It may be virtually impossible, as President or CEO or COO, to get out in the field and talk to every employee face to face. Although that should be a priority follow up during the course of the year. An acceptable alternative to reach every employee is teleconferencing. However, most companies are not set up for that process. A second alternative is the production of a videotape that is presented to every employee simultaneously. Mandatory viewing by every employee at a pre-selected time is essential. The video should send a positive message addressing the following issues.

Reasons behind restructuring

Future objectives

Commitment to success

Discussion of survivors and honesty of future actions

Motivational teamwork discussion

Framework for future communications

Discussion of trust and values

Answering questions posed by employees (at least 30 pre-selected questions and others asked by panel of employees)

Questions and Answers

It is a good idea to solicit questions ahead of time to be asked by employees. These questions are the heart of what's now on the employee's mind. Do not duck the tough ones. The employees will know and you will lose respect and trust. Face the issues head on with honesty. Supervisors can generate these questions from the employees company-wide and submit them for review. Every question does not have to be addressed, but the most relevant to the employees must not be ignored. The answers need to be rehearsed ahead of time.

The President facilitates this Q & A session but can direct different members of the executive staff to provide the answers. A hand picked group of line employees should be selected to ask these questions of the executive staff on tape. The tape can be edited to ensure a positive message. However, honesty and integrity must be preserved. Answers must be open, honest, sincere and complete. This is only the first step. It is usually the very first opportunity after the restructuring announcement to demonstrate leadership, respect and trust.

A mistake many leaders make during the restructuring process is the self imposed responsibility to have all the answers. This is just not true. It is okay to admit to not having all the answers. Good leaders are willing to show their imperfections. Surround yourself with a solid executive team and you don't need all the answers. No one expects perfection, just leadership. Being President doesn't grant you supreme knowledge.

Basic Rules

Communication is the breath of life, the first spark in leadership. Communication will hold the company together. Nothing else is so crucial to survival and solidarity. It is especially important that the message is consistent throughout the management team. Just as important is the demonstration of respect, trust and leadership. However, communication plays the most important role in building and preserving that trust and in signifying the presence of leadership. It is a make or break issue.

It is not only important that the President knows what the CFO and the COO are doing but he must also know what they intend to do under every circumstance. Once those determinations are made, the employees deserve to know what is planned if they are expected to execute with precision. People need a keen sense of trust and a feeling of being part of the plan. The communication network should connect all employees. Everyone needs to be a part of the overall plan. Miscommunication, rumors and garbled messages cause conflict and distrust. Don't settle for second rate communication, it's too critical to success. If you avoid informing all your employees specifically on matters that affect their lives, you are playing with fire. This kind of action breeds resentment, mistrust and paranoia.

"Be aware that the single greatest problem with communication is the illusion that it has been achieved." - Unknown

Why do we have problems communicating?

We are always in a hurry

We do not listen well

We are afraid to ask questions

We don't seek feedback or provide it

We use unclear words or symbols

We do not have the trust and respect of the person with whom we are communicating

We fail to anticipate

Difficulty in communications is enhanced when you are involved in crisis situations or adversity of some nature. A restructuring certainly qualifies under these guidelines.

Listening skills are especially important. Proof that you are listening is in your actions. Don't ask someone if they understand. Ask them what they are going to do. Listening should dominate your interaction with your employees. Distractions need to be removed. You must have a sincere desire to understand. You must be aware of individual needs. Be attentive and don't assume anything. Ask for explanations. Don't interrupt because you want to talk. Try to keep an open mind. Be compassionate and don't react too quickly. Avoid talking about yourself. These are the basic rules of communication.

Leading to Employee Commitment

Leading the restructuring process is not a cakewalk. You need to determine who the real players are. You need to understand what you can really ask of employees during these times. Be careful of misplaced or misdirected loyalty. Be careful of false loyalty. There are limits. You need maximum loyalty from your employees during this restructuring. Make sure you know who you can trust. Commitment demonstrated by the leader can lead to commitment by the employee. They want to take your pulse. They want to believe in you. They need a leader they can follow. It's imperative that you show no signs of weakness and you don't let them down. This goes for the entire executive staff.

Employee commitment will soar if you and your executive staff demonstrate a passion for success. Excitement breeds excitement. Success breeds success. The more consuming your desire to fix things, the more you demonstrate leadership and draw support from your employees. The executive management must set the stage. If your company fails, chances are you did not set the proper environment for success. (See an explanation of: Create an attitude, Structure an environment, Develop your team in the article, Success During Recessionary Times.) Your intensity, your focus, your drive and your dedication along with these same attributes from your executive staff are the determinants of the level of commitment and the level of respect you get from your employees. You must be proactive and publicly demonstrate leadership, confidence and commitment. For example, come up with an acronym that reflects the new strategy, such as "A new Vehicle for Success," or "The New (your company name) Company Way." remember that it is important to deliver a message of renewed life to your employees.