Managing in the Downturn – what changes?

Do you think that there is a shift in focus on performance management during a downturn?  Recent discussions with managers from a range of industries seem to indicate that the emphasis has shifted from quality to quantity, from giving customers what they want to getting the sale, whatever it costs.

We all understand the need to maintain sales and turnover, more than ever in the current climate, but what effect does it have on employees when the corporate message changes? Often this happens without any official announcement, managers start to push for harder targets, focus more on the numbers than before, and often the corresponding change is less importance placed on methods – the unofficial message given out is “it’s all good if we meet targets”.  This can be a confusing message for employees when the stated company values don’t match those in place at team level, or if it is a shift from a previously accepted approach.

Consider this scenario:  an employee has seen colleagues leave the business through redundancy; their manager tells them that it’s a tough market, and they have to work harder for the same level of business; the manager also tightens up on ‘policing’ staff – there is less ‘give and take’ around lunch times and leaving early; prices/fees drop to attract business, so staff are told they have to sell more/work harder.  All the time, the employee wonders if their job/family/mortgage is safe, or will they be next in line for redundancy.  

How do you think this employee will feel towards their company – loyal? Committed? Motivated? Doing whatever it takes to keep the job?

The Psychological Contract has been discussed for many years in management circles, and the effect it can have on performance if employees feel that their employer is not holding up their side of the contract.  David Sirota wrote about the effect of ‘tightening the leash’ and treating people as expendable back in 2005, in his book “The Enthusiastic Employee: How Employers Profit by giving Employees What they Want”.

The question is, in the current economic climate, what do employees expect of their employers?  If companies have taken a Balanced Scorecard approach in the past, has their Scorecard become unbalanced?  

Where is your organisation’s current emphasis – short term fight for survival and manage the future when/if it happens, or managing effectively in the short-term, ensuring long-term survival of the fittest?

This is a guest article by Deborah Willis, an independant training and coaching professional.