Managing trauma over downsizing

A challenge that leaders will deal with in their careers is about announcing and managing redundancies. This needs to be managed psychologically very carefully on two fronts. First, period of downsizing brings with it incredible anxiety for everyone.

Both leaders and employees have to "get through" this period, especially when it is announced and individuals are notified. The second, one of much more long-term significance, is issues of those that remain. Leaders have to deal with the fall-out from downsizing and move their organisations beyond grief, anger and loss of morale that characterises these major organisational events.

First few weeks after downsizing even those who still have jobs will feel a lot of difficult things. Grief, anger, sense of betrayal and depression are normal reactions. Typically, productivity drops as people work through their feelings by talking with each other. As a leader you have an important role to play in helping employees get past initial reactions. It is important that you do not pressure employees unduly, either in areas of increasing productivity, or in expressing feelings about the change. Your job is to help by gently talking to them, both in group settings and individually, about their reactions and how you can help. Ask questions, keep your own comments to a minimum and do not offer free advice initially.

Your ability to lead people through tough times will depend on your own physical and emotional health. It helps to reach out to colleagues outside your organisation and try venting your own feelings with someone unconnected. Initial shock of downsizing is likely to linger for some time, however, at some point there is a need to get on with it. It is difficult for a leader to determine when it is time to start sending the message that "business as usual" must prevail.

Clarify to employees the concerns they have about getting business done and problem-solving around issues. Group problem solving meetings and individual discussions are appropriate to make sure everyone is clear what they should be doing.

While feelings of employees are important, employees need to be slowly moved back to getting the job done. By getting clear understanding of changes, you will create a climate of stability, which is necessary for "recovery" of employees across the organisation.

For those who continue, as a leader you must give them a vision of the future, sense of what they are trying to achieve and make them feel a part of a goal-oriented team pulling in the same direction. It is commitment to these things that will work to revitalise an organisation that has been downsized. This is best done as a group process and can extend to undertaking strategic planning, re-examination of priorities, operational planning and review of role and mission. By doing these kinds of things you promote a sense that the future will bring positive and nurture a commitment in all to "rebuild".

Leading staff through downsizing requires the leader to exercise superior judgment and decision-making.

While it is a complicated and difficult task, consequences of mis-managing or under-managing the situation are simply far-reaching.

- Sanjiv Anand is the Managing Director and Bhaskar Menon is a Principal Consultant at Cedar Management Consulting International.