Last time we began exploring the Restructuring-Fear Cycle, which shows how the fear induced by restructuring can create a need for more restructuring. In effect, organizations can become addicted to restructuring. Here's Part II of our exploration.
- Credibility erosion
- When employees notice a pattern of restructuring, many assume that their own performance, and that of their business unit, will affect decisions about their job security. Correct or not, this speculation can lead to withholding bad news, or worse, creating fictitious good news. As status reports travel up the management chain, some recipients, anticipating this shading of the truth, doubt the veracity of the reports.
- When what we say to each other becomes unreliable, managing the organization becomes truly difficult. Enterprise performance is at risk. In this way, restructuring events can degrade enterprise performance, which increases the need for further restructuring. Top-to-bottom management replacement, as in a spin-off or acquisition, is sometimes the only way to end this cycle.
- Getting things in under the wire
- Among managers who recognize that further restructuring lies ahead are those who undertake so-called game-changing projects that promise a brighter future. They're hoping, in part, to enhance their own job security. Because they typically believe that the opportunity for initiating new projects is short-lived, they tend to oversell the attractiveness of their initiatives by representing them as better developed, lower-risk, more important, and more urgent than they really are.
- This dynamic can lead the enterprise to undertake too many new efforts, many of them too disconnected from its core mission. The problems inherent in development are often understated, and the downstream costs of supporting new offerings are often underestimated. Many of these efforts come to nothing. The resources invested are wasted, which leads to enhanced necessity for further restructuring.
- Roster padding
- Within most Among managers who recognize that
further restructuring lies ahead
are those who undertake so-called
game-changing projects that
promise a brighter futureenterprises, we can usually find a most-politically-powerful entity — a brand, a business unit, or a constellation of smaller entities exploiting a single market position. To employees who fear job loss as a consequence of restructuring, the most-politically-powerful elements seem like possible havens of job security.
- Managers within the politically powerful elements thus sometimes experience a flux of jobs seekers from other business units. Before the restructuring began, some of these people would not have been obtainable at the rates being offered, or not obtainable at all. Some managers succumb to the temptation to make internal hires. When external hiring is frozen, but internal transfers are still permitted, politically powerful entities can find themselves bloated with employees and projects. Their expenses climb, and soon there is need for yet another round of restructuring.
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!
 Weinberg, Gerald M. Quality Software Management Volume 1: Systems Thinking. New York: Dorset House, 1989. Order from Amazon.com
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More articles on Emotions at Work:
- I Think, Therefore I Laugh
- Humor is fun — that's why they call it "funny." If you add humor to your own work environment,
you'll reduce your level of stress, increase your creativity, and drive your enemies nuts.
- The Loopy Things We Do at Work
- At the end of the day, your skill at finding humor inside the dull and ordinary can make the difference
between going home exhausted and going home in a strait jacket. Adopting a twisted view of the goings-on
might just help keep you untwisted.
- Creating Trust
- What can you do when you discover that the environment at work is permeated with distrust? Your position
in the organization does affect your choices, but here are some suggestions that might be helpful to anyone.
- Directed Attention Fatigue
- Humans have a limited capacity to concentrate attention on thought-intensive tasks. After a time, we
must rest and renew. Most brainwork jobs aren't designed with this in mind.
- Heart with Mind
- We say people have "heart" when they continue to pursue a goal despite obstacles that would
discourage almost everyone. We say that people are stubborn when they continue to pursue a goal that
we regard as unachievable. What are our choices when achieving the goal is difficult?
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- And on August 1: Strategies of Verbal Abusers
- Verbal abuse at work has special properties, because it takes place in an environment in which verbal abuse is supposedly proscribed. Yet verbal abuse does happen at work. Here are three strategies abusers rely on to avoid disciplinary action. Available here and by RSS on August 1.
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- 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.