1. Moving Your Organization ForwardStaffing for Organizational Change Bob Lewis APT, Inc Presented to LWHRA on June 9, 2009
2. 2 The trouble with turmoil Staffing during disruptive change is not like staffing during other situations High stress Fast turnaround Significant uncertainty High visibility Legal exposure Eroding morale Turnover of key talent
3. 3 The risks… Short-term actions that create long-term pain Perception among employees that changes made rapidly are unfair or arbitrary De-motivation and burnout Uncertainty & survivor effects Employment litigation What is the biggest risk?
4. The biggest risk The vast majority of firms that downsize… Fail to cut costs Fail to increase profits Are financially outperformed by companies that don’t downsize Have a lower stock price …two years after the downsizing
5. Difficulties managing change Inadequate plans Poorly planned staff cuts Majority of firms hire displaced employees (full-time or contractor) at higher wages Little attention to survivor effects Stress, increased workload, higher tendency to turn once economy turns positive Managers and HR—survivor and victim effects
7. Your challenges What is disrupting your organization? What staffing implications did/are you facing? What response/action did you take? What remains to be done?
8. 8 Our opportunity Explore how to use elements of the change model to best support where you are in the change process Discuss how different organizational changes require different approaches Moving forward—how to get the organization focused on the future
9. 9 Drivers of disruptive change Business drivers with implications for people Strategy driven M&A Efficiency driven Restructuring Cost driven RIFs
10. Mergers & acquisitions Key question: How can we quickly align the workforce with the strategic forces driving the merger/acquisition? Key challenges: Driving cultural integration/alignment while staying focused on productivity Keeping morale high while eliminating redundancies Assessing people when they’re not known
11. And more… People Impact Uncertainty regarding the new organization and team members Job (in)security Refining roles given M&A goals Competing cultures Pitch to Executives Get talent working together; form a new and better culture Align people with the new strategy/goals; sharpen focus
12. The M&A “100 day plan” Create and align (or reaffirm) people strategies Merged Company Prior Company Status Merge or reaffirm culture(s) Define/revalidate roles values, standards
13. Restructuring Key question: How can we get the restructured organization up and running? Key challenges: Ensuring new roles/responsibilities are clear Effectively filling new, expanded roles Getting people acquainted with new managers Getting the organization focused on its “100 day plan”
14. And more… People Impact RIFs may accompany new organization or divisions Conducting hiring and RIFs simultaneously Uncertainty of the future Pitch to Executives Align people with the new strategy/goals; sharpen focus Shore up measurement of talent to ensure payoffs of restructuring
15. The restructuring “100 day plan” Provide Context Performance guidance Organizational performance Focus on training Organizations that train post- restructuring increase productivity; those that don’t decrease it Space to share lessons learned
16. RIFs Key question: How can we ensure business continuity? Key challenges: Loss of key capabilities and project continuity Ensuring there are staffing contingency plans Re-engaging the workforce
17. And more… People Impact Sudden change with little time to react Survivor and victim syndromes Burnout and disengagement Pitch to Executives Most downsizings are unprofitable; need to act Keep the focus on the work; decrease uncertainty in the workforce Assist those whose workload has increased
18. The RIF “100 day plan” Communicate! Project continuity discussions Value of survivors Roll out job specifications Recognize new scope for changed jobs Validate continuity for unchanged jobs Interventions to address sense of control, survivor/victim syndromes
