The Truth Will Set The Corporate Turnaround Manager Free
Nowadays, downsizing, delayering and outsourcing are the normal regime of corporate life. It is important to communicate honestly to the staff throughout these trying events. When dealing with difficult matters, 'honesty is the best policy'. It is unethical to sugar coat, mislead or lie to the staff concerned. They will eventually come to learn the real situation. Any mishandling of the outcome can create distrust, sense of betrayal and loss of confidence in the management.
Thus, in the case of a sick company, it is better to recognise this fact, tell the truth and relevant matters relating to the turnaround plans. By concealing the truth and going about business as usual, one falls into the denial trap. Be truthful and do not hide the truth as people are not against bad news per se. Some of the staff would have already sensed that something is amiss, just as a sick person is aware that all is not well with his body. Most staff only want to see quick results in the turnaround and the uncertainty to be cleared so that they can move on with their lives. Hence, after communicating the truth, the turnaround manager must ensure that he has a plan to rectify the problem and implement some tough measures and unpopular actions.
The idea is to acknowledge the truth and quickly work with the employees to administer the right medicine. Usually, the staff are the first ones to realise that the ailing company needs drastic actions to fix a difficult situation and there is often no necessity to do much convincing of the need for tough turnaround measures. Many executives are actually looking for a saviour to resuscitate the organisation.
As a corollary to this, it is also important to let the bank know the financial health of the company. Some ailing businesses try to hide their financial predicaments from the bankers. Most bankers are sympathetic and will try to help those debtors if they can show concrete rescue plans. The bankers will lose total confidence in their debtors if the bankers have to learn it from other secondary sources about their borrower's financial difficulties. In such situations, the bankers may not be very sympathetic as it is deemed that their borrowers are trying to hide the truth from them.
Be truthful as the truth will set you free.
Related Tags: change, manager, outsourcing, integrity, downsizing, corporate turnaround, delayering, unethical
http://www.corporateturnaroundexpert.com
Dr Mike Teng (DBA, MBA, BEng, FIMechE, FIEE, CEng, PEng, FCMI, FCIM, SMCS) is the author of the best-selling business book "Corporate Turnaround: Nursing a sick company back to health", in 2002. In 2006, he authored another book entitled, "Corporate Wellness: 101 Principles in Turnaround and Transformation." Dr Teng is widely recognized as a turnaround CEO in Asia by the news media. He has 27 years of experience in corporate responsibilities in the Asia Pacific region. Of these, he held Chief Executive Officer's positions for 17 years in multi-national, local and publicly listed companies. He led in the successful turnaround of several troubled companies. He is currently the Managing Director of a business advisory firm, Corporate Turnaround Centre Pte Ltd, (http://www.corporateturnaroundcentre.com) which assists companies on a fast track to financial performance. Dr Teng was the President of the Marketing Institute of Singapore (2000 - 2004), the national body representing some 5000 individual and corporate marketing professionals.
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