Top 5 Mistakes Leaders Make in Tough Times

Today's HR Daily Advisor Tip:
Top 5 Mistakes Leaders Make in Tough Times

Topic: E-pinion


Just My E-pinion
By Eileen McDargh, CSP, CPAE Things getting a little desperate these days? Be careful that you don't do something you'll regret, says guest columnist Eileen McDargh, a professional speaker and business consultant on change management, life balance, and leadership development. Here are her top five management mistakes (plus a bonus).

Mistake #1: Become reactive and reactionary.

There is truth in the old saying, "Respond in haste. Regret in sorrow." When leaders fail to gather information and critically assess the long-term impact of decisions, severe errors are made. Consider the Big Three auto executives who knee-jerked their way on private planes to ask for a handout without ever having a plan. Now that's a bonehead mistake.

Before acting, stop and breathe. Think long-term strategy. Be cautious. Be proactive. Test your decisions by saying, "If this... then this..."
Mistake #2: Huddle with only the corporate folks.

First, answers are often found at the floor level, not at the ceiling. Involve everyone in the search for efficiencies and innovations. Engage everyone in a common vision and mission. How refreshing to have the Obama team now posting discussions on the Internet and seeking input from a variety of people with differing viewpoints. Building transparency goes a long way toward building trust and making us all feel we are part of the solution.

For plain-English analysis on every key topic in HR, turn to HR.BLR.com. With 24/7 access, this remarkable everything-you-need-for-HR solution is like adding an employee to your staff. Learn More
Mistake #3: Cut. Cut. Cut.

No company has ever downsized its way to greatness. Underserved customers and too much work to be done by too few people are examples of the costs of wholesale terminations. These are cuts that could have been done with a scalpel instead of a hacksaw.

Canceling a meeting? This is the time to gather and candidly talk. Substitute Jell-O for Jamoca fudge and two-buck chuck for filet mignon but bring people together.

As for layoffs—if your organization or department can handle this—bring everybody together and lay out the facts. One very smart leader found that employees were willing to reduce work schedules, work half-time, and job share rather than have members of their team terminated.
Mistake #4: Go after new clients and customers.

Unless your current customers have vanished because of poor quality or service, they can be your best source of new revenue. Ask how you can turn them into champions of what you provide. Make them feel special and valuable. I've noticed that my bank is now making every effort to thank me for my business, to call me by name, to answer any request with a "no problem" attitude. Sure, they should have been doing that all along, but better late than never.
Mistake #5: Do more with less.

In my consulting practice, I have often found that much of the "more" is work that provides no value at the end of the day. Scrutinize every process; get rid of the sacred cows and the egos. Translate every action into a dollar value.

In one organization, we found senior executives tripping over each other to put their two cents into every new PowerPoint® presentation. It was a waste of executive talent, made each project longer than necessary, disempowered the employees creating the presentations, and actually used up some $15,000 worth of senior management time!

See what everyone in HR is talking about! Test drive BLR's remarkable all-inclusive HR web service, HR.BLR.com. Get help with more than 200 HR issues. Learn More
BONUS Mistake: Buy into pessimism.

It's a huge mistake we all make when we let the news of the day drive us to hiding under the covers, chopping up the furniture for kindling, and searching for recipes made with bread and water. What we have is an opportunity to really consider what is most important, to spend time at work that is meaningful, and to nurture relationships that matter. We have an opportunity to reclaim our reputation, our integrity, and our future.

Not to do this would be our biggest mistake.

That's Eileen McDargh's e-pinion. We'd like to hear yours. Share your comments below.

Eileen McDargh's newest book, Gifts from the Mountain, received the 2008 Ben Franklin book award. www.eileenmcdargh.com