Two Case Studies
The Hayes Group International, an organizational consulting firm, shares the story of a
manufacturing firm that had to make layoffs and changes. The company’s CEO sent a
FedEx envelope to the plant manager with instructions that he should not open the
envelope until the next day, when he was to call employees into the break room and share
its contents. The envelope contained layoff notices.
Then there’s another company with which The Hayes Group worked. The company
realized it had to make cuts at one of its manufacturing plants. In order to convey the
message, it divided the 600 employees at the location into groups of 50 and the CEO
personally met with each group through the night, explaining why the company was
downsizing. The CEO also shared that the company had started with salary cuts and that
HE HAD TAKEN THE FIRST CUT.
The first company’s approach resulted in shock and anger. The second company’s
approach elicited nearly universal support and this comment: “We trust you to do the
right thing.”
While the first example may be extreme, unfortunately the second approach isn’t
widespread. Michael Comer, consulting partner for The Hayes Group International,
which has worked with more than 1,500 companies in over 30 years, says it’s surprising
how often senior management doesn’t think through the process.