A client of mine is a multinational company with a vibrant, fast paced culture has been through the ringer lately. We talked about the talent issues they are dealing with, which were precipitated by losing two big accounts. The hit to income and profits distracted the CEO, and eventually, after months, led to a restructuring of the business to focus on different verticals. Suddenly everyone was tasked with business development, even junior staff. Needless to say, not everyone is comfortable with sales, so it didn’t go very well.
Things got worse. The loss of revenue and shift in focus to new kinds of business meant senior leadership was forced to evaluate employee skills. This forced layoffs, although the company talked a lot about how it was ‘helping’ displaced staff find ‘more exciting’ opportunities. Not surprisingly, people were waiting for the other shoe to drop, and many chose to head for the exits. This led to unplanned employee loss. In the end, what also happened, and what management may not have foreseen, was huge damage to the enterprise’s workforce culture and to employee morale. The vibrant and fun culture was hollowed out; people became wary, political and unpredictable. Today, when the CEO speaks in the language of the old culture, no one listens. CEOs in a crisis situation have to consider finances; they should also, to preserve talent and the culture, look to themselves.
