Are you working there now? In either case you know the elephant in the room is really big, even if some people want to ignore him, nobody really can, he’s just too big.When an organization is in search of what to do during tough times, besides just ‘ride it out’ there can be mixed messages all around. In some circles people suggest talking about these tough times would be alarming and may cause panic. Others suggest everyone come together, sing a song, or watch another training video.
If the elephant could talk he might say: “Set aside time to discuss how people are feeling, describe the vision to take us forward, and above all else… maintain visibility.”
In the May issue of Incentive magazine the cover article, “Retooling” highlights how companies like Microsoft and Goodyear are making sure they are in front of their partners and employees, especially now. While it’s tempting to suggest that these are big companies, so they can afford to do whatever they want, that belies the true cost of becoming invisible. These companies did make changes, and revised the purpose of their annual meetings other elements. The key ingredient that remains the same is continued visibility. The message of confidence that is sent by taking steps to remain visible to employees, partners, and clients a precious commodity. Now more than ever, people want to trust those who appear to be on track and moving forward.
One company highlighted by Incentive magazine was CA or Computer Associates, they are the leading independent IT management software company, with four-billion-dollars in annual revenue. While they want to remain lean, they realize for their sales people, cutting back on certain incentives would be a slap in the face. That is why they kept the 6-day incentive trip to Australia and New Zealand on the calendar. In fact, the incentive trip for their top 300 sales people was used to recruit new sales people with full page ads in the Wall Street Journal, The New York Times and USA Today.
Bill Hughes, an executive at Islandia, N.Y.-based firm states; “We keep the trip highly visible. It is the most sought-after honor among salespeople around the world.”
Wow, the “most sought-after honor” – in this economy, let alone any other, to be sought after would be a great place to be. As it turns out Hughes credits these sales incentives trips with helping CA retain the company’s 200 best sales performers, over the last 24 months.
“These sales incentive programs are a big part of our motivation, retention, and training. They are just a great way to keep our sales force engaged even in this tough time.”
You see, the idea that cutting incentives for employees, reducing marketing, or slashing ad budgets was a good way to survive tough times is a big misunderstanding. The cost cutting might work in areas like office supplies or paper products, but it sends the wrong message if all the perks start disappearing.
Focus on People, Not ProfitsSo perhaps you aren’t part of a giant company, maybe your are managing a small department, with a shrinking budget. The idea that is central to the success of the company is to reach out and raise up every employee. You do not have to have a ton of money. The choices that are made actually need to be focused on your people right now, not profits.
That’s right, not profits, people. By focusing on training and development the often forgotten ingredient is to celebrate your people. That’s right, celebrate the people who are choosing to work with you. This simple ingredient affects how your internal and external customers see you. Whether you have a large budget or a small one, keeping your eye on your employees and customers is about more than watching payroll and purchases. If you’re part of a smaller company, perhaps the choice is between keeping the vending machine or keeping the annual picnic. Choose wisely, if the outdoor gathering is where employees bond, and relationships are strengthened it’s much more valuable than a can of soda. If the choice is between disposable cups or a management retreat, move to a greener choice of real mugs, and reduced cost, while maintaining the key management get together.
What stands out about how CA, Goodyear, and Microsoft – all part of the Incentive magazine article, is that while the pressure to show you are tightening your belt is intense, the bigger question is how your employees feel when they see frightened leadership. When it comes to training and development, the idea that less training will afford savings is short-sighted. In the long run, it will only lead to a smaller company without the muscle to run the marathon that is coming up soon. It will be a climb, and those companies who kept people front and center in their decision making will have the muscle to power up to the summit. Those companies that did not, may have to ride a slow elephant to the top of the hill… and it may be too late for the next great transition.
