Four Popular Ways to Mismanage Layoffs: I

The news of spreading layoffs, production pauses, and bankruptcy-driven closures is by now upsetting almost everyone and every organization. Sadly, the mismanagement that leads to the need for such drastic actions is being replicated in the way managers deal with layoffs. Here are the first two of four fairly common ways to bungle layoffs, emphasizing the personal perceptions of decision makers.

Procrastination

Management delays action to repair the financial damage, hoping that "things will turn around when <whatever> happens."

Usually, in procrastination, management can no longer repair the company's finances even by doing a major layoff. Because of delay, organizational survival is now threatened. They're willing to consider layoffs only when the alternative is total business failure. Employees have actually figured this out months ago, and some of the best people have already departed or are already searching for jobs.

If you're in a position to do something about this pattern, remember that the earlier you act the better. Waiting rarely helps. And the longer you have already waited, the more important it is to act immediately. Don't worry about getting it perfectly right. It's far more important to make a start than to make a perfect start.

If you aren't in a position to do anything about the layoff procrastination, you have three basic options: you can exit the company voluntarily, you can stay but prepare for a possible exit or layoff, or you can do nothing. Most choose the latter. Preparing for a layoff is probably wisest for those who can't move on. But if your personal situation permits it, exiting voluntarily can be an excellent choice, especially if you're among the first to exit, because once the layoffs begin, competition for available jobs elsewhere might be more rigorous.

Denial

More insidious Denial and procrastination
are costly in themselves,
but they can create some
even more costly
synergistic patternsthan procrastination is denial, because management fails to see the need for reconfiguration. Spending, expansion, and even acquisitions often continue as if future projections were both accurate and optimistic.

In procrastination, the nagging feeling that all is not well has a benign effect — it can make managers cautious. In denial, by contrast, caution is less common — the organization might actually go into a power dive.

As an employee, denial is difficult to recognize, because your main sources of information are the very people who are in denial. But if you examine closely what they say about the parts of the company with which you are personally familiar, you might catch a glimpse of reality.

While denial and procrastination are costly in themselves, they can create some even more costly synergistic patterns. We can be in denial about whether we're procrastinating, and we can procrastinate about examining our actions for symptoms of denial.

We'll examine two common tactical errors associated with layoffs next time.  Next in this series  Top    Next Issue

Are your projects always (or almost always) late and over budget? Are your project teams plagued by turnover, burnout, and high defect rates? Turn your culture around. Read 52 Tips for Leaders of Project-Oriented Organizations, filled with tips and techniques for organizational leaders. Order Now!

Your comments are welcome

About Point Lookout

Thank you for reading this article. I hope you enjoyed it and found it useful, and that you'll consider recommending it to a friend.

Point Lookout is a free weekly email newsletter. Browse the archive of past issues. Subscribe for free.

Support Point Lookout by joining the Friends of Point Lookout, as an individual or as an organization.

Do you face a complex interpersonal situation? Send it in, anonymously if you like, and I'll give you my two cents.

Related articles

More articles on Personal, Team, and Organizational Effectiveness:

Make Space for Serendipity

Serendipity in project management is rare, in part, because we're under too much pressure to see it. If we can reduce the pressure, wonderful things happen.

Poverty of Choice by Choice

Sometimes our own desire not to have choices prevents us from finding creative solutions. Life can be simpler (if less rich) when we have no choices to make. Why do we accept the same tired solutions, and how can we tell when we're doing it?

Obstacles to Compromise

Compromise is the art of devising an approach acceptable to all parties. A talent for compromise is rare. What makes finding compromises so difficult?

Dealing with Negative Progress

Many project emergencies are actually the result of setbacks — negative progress. Sometimes these mishaps are unavoidable, but often they're the result of patterns of organizational culture. How can we reduce the incidence of setbacks?

Congruent Decision-Making: II

Decision-makers who rely on incomplete or biased information are more likely to make decisions that don't fit the reality of their organizations. Here's Part II of a framework for making decisions that fit.

See also Personal, Team, and Organizational Effectiveness and Managing Your Boss for more related articles.

Forthcoming issues of Point Lookout

Coming January 27: Cost Concerns: Comparisons

When we assess the costs of different options for solving a problem, we must take care not to commit a variety of errors in approach. These errors can lead to flawed decisions. One activity at risk for error is comparing the costs of two options. Available here and by RSS on January 27.

And on February 3: Cost Concerns: Bias

When we consider the costs of problem solutions too early in the problem-solving process, the results of comparing alternatives might be unreliable. Deferring cost concerns until we fully understand the problem can yield more options and better decisions. Available here and by RSS on February 3.

Coaching services

I offer email and telephone coaching at both corporate and individual rates. Contact Rick for details at rbrenhZLYrRMtUnyjppRsner@ChacotqZAFalhYTBMgJWoCanyon.com or (650) 787-6475, or toll-free in the continental US at (866) 378-5470.

Get the ebook!

Past issues of Point Lookout are available in six ebooks:

• Get 2001-2 in Geese Don't Land on Twigs (PDF, )
• Get 2003-4 in Why Dogs Wag (PDF, )
• Get 2005-6 in Loopy Things We Do (PDF, )
• Get 2007-8 in Things We Believe That Maybe Aren't So True (PDF, )
• Get 2009-10 in The Questions Not Asked (PDF, )
• Get all of the first twelve years (2001-2012) in The Collected Issues of Point Lookout (PDF, )

Are you a writer, editor or publisher on deadline? Are you looking for an article that will get people talking and get compliments flying your way? You can have 500-1000 words in your inbox in one hour. License any article from this Web site. More info

Public seminars

The Power Affect: How We Express Our Personal Power

Many people who possess real organizational power have a characteristic demeanor. It's the way they project their presence. I call this the power affect. Some people — call them power pretenders — adopt the power affect well before they attain significant organizational power. Unfortunately for their colleagues, and for their organizations, power pretenders can attain organizational power out of proportion to their merit or abilities. Understanding the power affect is therefore important for anyone who aims to attain power, or anyone who works with power pretenders. Read more about this program.

• A recording of a program presented June 29, 2017, Monthly Webinar, sponsored by Technobility Webinar Series. PMI members can earn 1.0 Category 'A' PDU by viewing this program. View this program now.
   
• A recording of a program presented June 29, 2017, Monthly Webinar, sponsored by Technobility Webinar Series. PMI members can earn 1.0 Category 'A' PDU by viewing this program. View this program now.
   

Bullet Points: Mastery or Madness?

Decision-makers in modern organizations commonly demand briefings in the form of bullet points or a series of series of bullet points. But this form of presentation has limited value for complex decisions. We need something more. We actually need to think. Briefers who combine the bullet-point format with a variety of persuasion techniques can mislead decision-makers, guiding them into making poor decisions. Read more about this program.

• A recording of a program presented June 24, 2020, Monthly Webinar, sponsored by Technobility Webinar Series. PMI members can earn 1.0 Category 'A' PDU by viewing this program. View this program now.
   
• A recording of a program presented June 24, 2020, Monthly Webinar, sponsored by Technobility Webinar Series. PMI members can earn 1.0 Category 'A' PDU by viewing this program. View this program now.