Wednesday, July 1st, 2009
MANAGEMENT
The Outside Story
How well do your managers really underst and the external business environment?
BY QUINT STUDER
ILLUSTRATION BY ILANA KOHN
If you’re like most business owners and executives, you are so immersed in the challenges your company faces right now that it seems almost inconceivable that your managers don’t see the same (grim) picture.
But think about it: Do they worry the way you do? Do they work with the same sense of urgency? Or do they have a “business as usual” attitude, seemingly unaware of the impact the recession is having on your company?
The truth is, they may not fully understand it. In many organizations, the senior team’s understanding of the external business environment is accurate, but their efforts at conveying this knowledge are less than effective.
Of course, your reticence and that of your senior leaders may be backed by good intentions. Perhaps you don’t share all you know because you don’t want to scare your managers. Or you fear they’re already overloaded—and any new information could distract them at a time when they need all their energy focused on their work. Or you assume they’re as aware of the external environment as you are (after all, they watch TV and read the trade publications, too).
There’s one more reason you might be keeping the bad news to yourself: You’ve solved tough problems on your own before, so you figure you can do it again.
But in this economy, no leader, however confident, can go it alone. Managers need to function as true partners, making critical decisions that require a solid grasp of the larger context in which they’re working. And it’s up to the leaders to give them the truth.
Managers and employees at all levels want senior leaders to connect the dots between the external environment and their day-to-day actions. They appreciate the trust placed in them and the opportunity to provide input and offer fresh solutions to the problems caused by external forces.
Share this information with everyone in your company, and your efforts will result in faster and better decision making, improved alignment and heightened accountability. You’ll enjoy far more effective execution of your strategic plan. And if you have to downsize, employees are more likely to understand why.
Keep people at all levels apprised of the external environment and results will improve across the board. Employees will be more engaged, which improves their job performance. Customers will be happier, and employee satisfaction will be higher. In the end, you’ll create an organization that survives the recession and comes roaring through on the other side.
