The most critical asset to any company are the people. The people own the skill sets and the relationships within the industry that generate the value that the company provides to its customers. Employee turnover creates a huge impact to the current operations and adds an additional risk to the turnaround success. Addressing this risk during the turnaround period coupled with a clear change management communications plan is what provides the sustaining effort after the company rises from the turnaround.
Drastic management decisions during a turnaround leads to cost cutting, process change, and removal of underperformance. During a major turnaround activity a company can suffer damage to their existing workforce. People are creatures of habit, good or bad, and they do not react well to change. Despite well designed and implemented change management communication plans, the absolute reengineering of the way the company had operated in the past has a tremendous impact to the employee base that continuous communications of progress cannot sustain alone.
Here are 3 methods that can help the organization grow and sustain the turnaround progress:
- Re-brand your company: actively get into the community and re-brand your newly striving company. Employee brand is critical and the continuous communication internal and external about the company is critical to generating a new reputation.
Focus on the employee: training, supporting associations, looking at your benefits and incentives, and generating positive messaging through management by walking are some great starting points.
Continue to hire new blood: new employees bring innovative thinking, new ways of doing things, new experiences, and most importantly they have zero baggage from the past when the company was distressed. Mixing these people with the current employee base is refreshing for the organization.
Let us know what other method you have successfully implemented during this sustaining period?
Global High Tech Executive, GM, Entrepreneurial Leader – Strategic Vision, Process Improvement, P&L, PLM, Sales Growth