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These are tough times for every boss I know. Fear and paranoia are running wild, not just in financial markets but in workplaces, too. A few weeks back a weary executive at a professional services firm told me how painful it had been to lay off 10% of his people and how he was struggling to comfort and inspire those who remained. When I asked a mutual friend, the CEO of a manufacturing firm, to “show some love” to this distressed executive, he jumped in to help—but admitted that he was wrestling with his own demons, having just implemented a 20% workforce reduction.
It was not a coincidence to find two friends in such similar straits; few organizations seem to have avoided them. Even in businesses renowned for having heart, bosses have been forced to wield the ax. NetApp, declared number one in Fortune’s “100 Best Companies to Work For” for 2009, announced it was cutting loose 6% of its employees less than a month after the ranking appeared. Google, top-rated by Fortune in 2008, has shed hundreds of full-time employees. And layoffs aren’t the only reason it’s a miserable time to be the boss. Where cuts haven’t occurred, people suspect they will, and the lingering dread creates its own challenges. One technology sector CEO I’ve worked with for years felt compelled to inform his people in writing that not only were no layoffs planned but the company would be hiring a lot more people in the coming year. Yet, he said, “no matter how much I share about how safe we are, people still ask, When are the layoffs coming?” Even where jobs are demonstrably safe, lesser but real disappointments occur: Salaries are cut, budgets are pared, projects are back-burnered.
As a result, most bosses—like you, perhaps—are operating in difficult and sometimes unfamiliar territory. Equipped with skills and approaches honed over long years of business growth, they now find their roles defined by an unexpected question: How should people be managed when fear is in the air, confidence is slipping, and it looks as if the road ahead will remain rough for many miles? This isn’t the job most executives and managers signed on for, and not everyone will rise to the occasion. This article is designed to help those who want to do so—first by clarifying why it’s so hard to be a good boss, and then by sharing the essence of what the best bosses do during tough times.
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