This is a time when large corporates should learn from the lessons that small business can share. I can personally recount a time in my life when my previous entrepreneurial venture had its days numbered, that my staff gave me 150%. Numerous stories exist, movies have been filmed of the super-human effort of all employees, owners, suppliers alike to save a fighting cause. Far from Hollywood, however, sometimes the ship does sink in the end. Despite the immense efforts, new ideas tried, products sold it sometimes is not enough.
As the person who lost the most in that venture (3 years of pain, tears and not to mention endless pots of money raised on re-mortgages and credit cards), I take the memory of my staff working round the clock to try and redress the situation. At one time, one of my staff did not want to leave the premises to attend to her mother who had just been hospitalised with heart issues because she felt guilty of leaving – she had developed such a strong sense of duty to “do her bit” that she did not want to leave. I had to gently push her out the door….
I was shocked, and, at the same time moved. What had I done to deserve such loyalty, such care, so that my employees were so devoted to and attached to the business?
I had done just that: I had given them faith and something to believe in. I had given them the belief that they could really be instructive in turning things around. I gave them freedom to try new things – at the end of the day, it would not have hurt to try, would it? I had also been very open with them about the situation. I did not choose to hide behind the veil of hope. I kept them informed of the status quo, and that we were running on empty. Money was tight (that is what ultimately killed the business), so we could not spend a penny more. And perhaps it was this combination of events that really made the difference.
So, here is a note to large businesses out there. As you are cutting R and D budgets (according to the Financial Times, in 2008 the total R&D expenditures of S&P 500 companies, based on the approximately 200 companies that report them quarterly, declined 13 per cent – from a total of $43.1bn in the fourth quarter of 2007 to $37.4bn in the third quarter of 2008), consider the following lessons from a faltering business which experience the ultimate engagement levels from its employees:
- Give faith: give each one of your employees the knowledge that they can make each make a difference to the business’ future, that they have been selected and trained because they have the capability to make things happen
- Empower: enable them to take their own decisions, remind them that they are accountable for them. When people are treated like adults, they behave like adults (it is only in an environment reminiscent of a playground that they behave like children)
- Enable freedom: give them the wings to try what they think is the best approach to solving a problem without fear of reprisal nor criticism
- Be transparent: openly communicate the challenges and state what may happen if there is no turn-around. Honesty will be appreciated and results will ensue
- Foster creativity: your employees are on the “shop floor”. They know what needs fixing and can suggest ways that would make a difference to them and the business. Support avenues of creativity whereby departments collaborate on resolving processes, communication blockages or new customer propositions. Listen to them.
These days no business large or small is immune to the challenges of the credit crunch. However increasing employee morale and achieving workforce engagement to as close as 100% as possible can really make the difference when the chips are down. Act now, before it is too late.
