In March 2015 we received the bombshell from our U.S executives that our office in Oxford was to close as part of a long-term global consolidation of sites with some staff being offered relocation and the others made redundant. The products needed to continue, but how could we avoid the remaining time just being miserable?
Staff were asked to complete their current work and assist with knowledge transfer to the remaining development offices in the USA and India. The previous few years had seen good progress with agile and lean software development, customer satisfaction had steadily risen and staff turnover had been extremely low. So the closure announcement was a body blow. The chance of the announcement being taken badly was all too real with the risk of the situation disintegrating into a depressing mess.
The Oxford management team had the difficult task of trying to make the best of the situation and get the best outcomes for both staff and the company. One year on, the results so far have been remarkably positive. We can therefore make some recommendations for anyone else in this situation, some of which are also worth considering for companies during normal operations.
Actions taken
- Long notice period – We managed to agree 18 months’ notice of the final closure. This was necessary to complete current work and have an effective handover so that the complex medical imaging software products could continue. However, it was a very long time to hope that people would stay so other measures were needed.
- Generous redundancy packages. These were agreed at a level which impressed staff. With their tax-free nature, this gave people confidence that even if they didn’t find another job immediately, they would not have any financial worries for a few months.
- Relocation support – Real commitment was shown to staff to find them other places within Siemens. This included generous relocation packages, funded exploratory visits for staff and families, advice from locals and flexible move dates. This was not cheap, but the cost was much less than hiring and training somebody new.
- Voluntary end dates – Rather than imposing end dates, staff were asked to openly express whether they wanted to stay 6, 12 or 18 months. It’s very hard to predict how people will react so it was better to try to align individual’s needs with business needs. Almost 100% of people got they end date they wanted, most opted for the longer duration and the company had adequate cover.
- Keeping a training budget – Staff were given encouragement to still do training and qualifications. The company would still get some benefit from the training in the short-term, it would help staff with finding a new position, but mostly it helped reassure staff that they could stay and still develop themselves.
- A larger entertainment budget – It was important for people to socialise and support each other so there was an increase in company-funded drinks, lunches and a bigger-than- normal Christmas party.
- Help with job-hunting – Staff were allowed to take some time for interviews and encouraged to have an open discussion on opportunities with support given to try to accommodate people’s wishes where possible. External consultants were available to advise on interview techniques, CV-writing and job hunting.
- Effective use of employee representatives – Rather than just fulfilling a legal requirement, a real effort was made to engage with the elected employee representatives, create a detailed FAQ for staff and share all information on the intranet.
- Continued staff recognition. The office was required to operate properly for an extended period so it was only fair that staff should be treated normally and retain the opportunity to still achieve an above-target bonus and the opportunity for promotion.
- Management care – The managers have been very open, honest and helpful to the staff and shown genuine care and empathy for people and their circumstances. This probably made the biggest difference and enabled so many of the positive results. A site closure can be viewed by staff as a big breach of trust, so asking staff to believe promises about arrangements during the remaining period is a challenge and requires lots of reinforcement, consistency and ensuring that was is said is done.
Results
- Staff morale – This went through the inevitable rollercoaster of shock, anger, worry then acceptance. People were annoyed or upset at the decision, but overall viewed the offers as fair and professional. Staff who had been through a redundancy before thought that the way this was handled was much better. Although losing colleagues is unavoidably sad, people have been positive about making the best of the situation.
- Staff stayed until their agreed date – The long notice period and generous packages meant that most people were fairly relaxed about finding a new position and happy to leave serious job hunting until a few months before their agreed end date. Whilst, it’s an imposed change for everyone, in some cases, staff have appreciated having the “luxury” of having an extended period with a financial cushion during which to calmly think about what alternative job they would really like to do in future. Staff have been open about their hunting and have discussed mutually agreeable end-dates before accepting offers.
- Results still achieved. Work on products continued at a good level. Inevitably people weren’t going the extra mile in quite the same way as they used to but were professional and productive. Staff have been helpful in ramping up new recruits in India and continue to take pride in their products. There have been no surprise, early, resignations or disciplinary issues.
- A surprising number relocated. 25% of people relocated to the USA which was a lot higher than anyone originally expected since people liked being in Oxford.
- Additional social events – The activity in the office “community” if anything picked up since the news with whisky tasting, a pool tournament, team nights out, a group cycle ride around town etc.
- Peer-to- peer training – Staff have shown a great desire to support each other and proactively run open seminars for others in the office to share their knowledge with others (e.g. Sharepoint, Data Science, Android Programming, Arduino programming, Linux etc)
- More cakes – We’ve always provided cakes on a Friday but the number of spontaneous cakes being brought into the office on other days has gone up.
Overall it has been a much more positive experience it could have been. The office morale is still good and the staff have received outstanding praise for their continued professionalism and dedication.
The results has been good for the company as there is a smooth handover taking place while ensuring that people are taken care of. The actions above have not been cheap for the company in the short-term, but are ultimately delivering better long-term value than the alternative of instant site closure followed by disorder and a long period of rebuilding a new team from scratch.
Suggestions relevant for companies not closing
Whilst some of the topics are only relevant to a site closure, some things could be beneficial anytime.
- Management openness is always a good thing. It’s easy to forget the importance of explaining plans and listening to feedback. Make sure there’s time for group meetings, 1 to 1 sessions and occasional surveys.
- Peer-to- peer training is always very cost-effective so time and support should be given for this. Staff have a lot of varied knowledge and it’s motivating for both the trainer and attendees.
- Creative entertainment. It can be an easy area to cut, but pays back a lot. If people have a good social relationship with colleagues, they are much more committed to them and hence also the company. The entertainment does not necessarily have to be lavish e.g. a pool table and tournament, an indoor mini-golf area made out of office accessories and text books, a pancake- tossing event on Shrove Tuesday etc. Something a bit different every few months keeps things fresh. Cakes, are always good.
- Look for the best outcome for both staff and the company given the circumstances. Arrangements with staff have to be fair to get the best results in the long-term.
By: Stephen Wells, Siemens Molecular Imaging, Oxford
In the family way
It’s funny how things work out, what we see when we open our eyes and raise our curiosity.
In particular, two events this week that in one moment filled me with dread, then filled me with hope and possibility.
Firstly, on Wednesday a colleague sent me an article from The Economist about the quality of managers in the UK. The article reflected on the following:
The low productivity of British workers has several possible culprits. Inefficient family-run companies are sometimes blamed, as are poor workforce skills. But whereas these problems are well documented, another factor is glossed over: the mediocre performance of British bosses. John van Reenen, director of the Centre for Economic Performance at the London School of Economics, argues that the standard of British management is “significantly below” that in leading countries. His team carried out 14,000 interviews with employees around the world and found that British workers rated their supervisors lower than those in countries such as America, Germany and Japan. “We are not in the premier league,” he says.
Management as a skill has rarely been taken seriously in Britain, where the cult of the gifted amateur prevails. Ann Francke, the head of the Chartered Management Institute (CMI), says that four out of five bosses are “accidental managers”: they are good at their jobs but are then promoted into managing a team or a department, without further training. Unsurprisingly, “they flounder”, she says. Mr van Reenen reckons that about half the productivity gap between Britain and America could be attributed to poor management.
Inefficient family run companies? Funny that, because on the very next day I found myself in need of the services of a family run company. My wife’s lovely Michael Kors watch had used up all of it’s battery charge and a replacement power cell was needed. The most obvious place to get this done is my local Timpsons.
You may know of Timpsons. You may even be a customer of theirs – everything from key cutting, engraving, shoe repair to wrist watch maintenance. But do you know John Timpson’s approach to management?
In a recent article in The Independent, Mr Timpson explained his philosophy.
His way of avoiding top-heavy management is to do away with their jobs. “When I introduced my ‘upside school of management,’ which is putting the customer at the top of the matrix and management at the bottom – and giving staff the freedom to run their own shops – our middle managers didn’t like it at all. Many left.”
As he admitted, Timpson is a funny business. It does all the odd jobs that no one else wants to do, whether its key-cutting or, now, watch and mobile phone repairs. “This wouldn’t have worked if we hadn’t understood the importance of picking the right people and giving them the freedom to look after customers and to decide how to run their shops and to set their own rules. That is the core of our success.”
So what was my experience? As someone who is often frustrated by lack of customer service, I find the whole Timpson experience leaves me with a smile on my face.
I took the opportunity today to ask the 2 guys serving, what is life really like as an employee?
Their answer was simple “Great!”
Why, I asked. “Because we are left alone to get on with it. This is our store. We get guidance, sure, but we make the decisions because we are with the customers every day”.
And how does that make you feel? “Trusted!” was the immediate response.
But does this upside down school of management work commercially?
Well, Timpson recently reported sales up 12 per cent to £189m and profits 38 per cent higher at £18.7m. Furthermore, over the past three years the company has grown rapidly – from 800 stores to 1,400.
Yet again, more evidence that shows having engaged staff not only results in a better, happier work place, it also brings commercial value.
By: Mark Manley from Gaia Leadership
If you would like to learn more about how to build engagement within your organisation, please contact me
mark.manley@gaialeadership.com
I write these articles as part of my own learning. Thank you for reading it.
If you like it, please share it.
Yes … You Can … Change Your Organisation Culture!
Some management consultants claim that you can’t change an organisation’s culture.
This is nonsense.
Numerous other management and change consultants claim they can change an organisation’s culture.
This too is nonsense.
You can change your organisation’s culture … from the inside.
Indeed, a leader’s responsibility includes Shaping their Organisation’s Culture.
I am going to share two successful stories of leaders driving change in their companies. On both occasions, I was engaged as an external consultant with the brief to co-design and facilitate the process and selected interventions.
Engineering Inc.
From a loss-making conflict-ridden environment where indifference and lack of trust reigned, to a profitable integrated company with engaged employees. The company is now a unit in a global corporation and a Centre of Competence for its product line.
The Situation: A new CEO had recently been appointed to a company which had changed owners 3 times and been making losses for 8 years. The environment was poisonous: chaotic production processes, cynical, continuous conflict with customers due to delivery and quality issues, abuse of the system by middle managers who themselves were not trusted by the production engineers and technicians. Closure was a possibility with 300 jobs at risk.
Changes and Process: Three new engineers were brought in to fill critical positions: Chief Engineer, Senior Project Manager, Site Manager. We conducted individual interviews with all managers, held focus groups at all levels, engaged the works council. Product demand fortunately was not an issue. Customer relations unfortunately were a serious problem. The CEO appealed for support. He laid out a clear strategy with a message of the environment and changes needed to continue operating. Changing the focus from inward (protectionist silos) to outward (the whole business with customer needs as focus) we used strength-based approaches to realign around real business Questions, whereby employees were invited to contribute. The production and logistics process was changed completely; skills deficits were alleviated; product design now involved production; the management team began to work as an integrated unit; employees wanted to contribute to improvements. Three middle managers who resisted the changes were forced to leave. Additional jobs were created in production as demand rose. Within two years, the site was making a profit.
Key Change Success Factors: The need: without change, the company was in serious danger of closing. Leadership: A driven leader who everybody trusted – he was visible, approachable and walked the talk. His messages were clear and he listened. Involvement: People learned not only that their contributions were desired, they experienced that the invitations they received were genuine.
Finance Inc.
From a small sleepy company in which employees had a lackadaisical approach to their work and customers, to a dynamic market leader whose customers praised service quality.
The Situation: A small specialist data processing company was acquired by a global corporation. A new CEO was installed together with two experts from the parent company. The environment was friendly and relaxed. There was little engagement, people worked with an eye on the clock, problems were referred to management, error rates were high, clients were irritated.
Changes and Process: The new CEO laid out clear guidelines, expectations and his vision of potential opportunities. All employees were invited to play an active role in working groups that defined and implemented new more efficient practices and new customer interface processes. Customer orientation was prioritised. The two new specialists were appointed to lead functional units, otherwise, the only hierarchy was towards the CEO. Processes were defined, personal and team responsibility was expected, engagement levels improved significantly, the environment was noticeably more dynamic, problems were solved at the level at which they occurred, customer satisfaction indices increased dramatically. Within two years, the number of employees increased three-fold as new clients came on board.
Key Change Success Factors: Leadership, Trust and Recognition: Clear consistent Leadership; clear guidelines; employees felt valued and freer. Involvement: employees were able to see the impact of their contributions.
Culture is the continuously evolving dynamic interaction of the mindsets and gutsets of all the actors in the system. It is the Soul of the Organisation that drives the behaviours we observe.
In many if not the majority of organisations, observed behaviours reflect not the values of the people within the organisation, but those hidden values of the organisation as a system, frequently driven by inappropriate leadership. By inviting and encouraging the people to engage with the system, leaders can lead a change from a negative to generative culture. Indeed, this is their responsibility.
And in the fast changing world of the early 21st century, shaping an adaptable organisational culture is becoming a survival essential.
Yes … You Can … Change Your Organisation’s Culture!
By: Eric Lynn from CultureQs
How the Future of Tech Impacts Work Habits
During the DevExperience conference on the 25th of March, we sat down with one of the key speakers, Lisette Sutherland, to discuss the ways in which technology advancements, and VR in particular, will impact people’s lives and working habits.
Beaglecat: Could you please tell us something about yourself and the company you run?
Lisette Sutherland: I am the director of my own company, Collaboration Superpowers. Myself and other licensed Facilitators give online and in-person workshops to help companies work better together remotely. I am also the remote team manager at a company called Happy Melly – a global network of businesses that are focused on making people happier at work (included are Management 3.0, my company, LeanChange.org, Improv Agility, and others).
BC: Do you think in 5-10 years we will have offices like we have today or do you think everyone will work remotely?
L.S.: Technology is making the traditional ”9 to 5” schedule unnecessary and less attractive for more and more people, especially the younger generation. The most important thing is working from where you are the most productive. Some people work better on the road, some at the beach, some from the office, some from the comfort of their own home – everyone should choose what works best for them.
BC: Do you think that we will be able to work using Virtual Reality in the near future?
L.S.: They’re already doing it. Virtual worlds have existed for more than 20 years now. People are going to school and earning degrees in VR. People are going to conferences in VR. The military uses VR for simulations.
The only issue is that navigating in VR is very difficult, it’s like learning to play the piano. That’s why it’s not so popular. It’s worth trying it out to see what it’s like to be in a virtual world. For example, you can create an account in SecondLife. When you log in, you are placed on a “newbie beach”, literally a beach for new people. Then you have to learn how to move your character and interact with the world and find your way to the place you want to go (like a conference).
BC: I am guessing that 10 years from now this is going to grow. How do you think this is going to impact us?
L.S.: One thing to be careful of is getting enough real life social activity. Technology has an addictive, unhealthy side to it. Each person needs to create healthy boundaries for themselves. The exciting thing is that with technology people can get together from anywhere in the world and solve interesting and challenging problems. I used to work for a company that was developing an online project management tool. The CEO was building it because he wanted to solve the problem of aging. He was frustrated that longevity scientists all over the world couldn’t properly collaborate together and easily share data. So he set out to build a tool they could use to collaborate at a distance. For me it was an ‘aha’ moment. I realized that if we could get the right people together, we could do great things like curing cancer or stopping global warming, or aging.
BC: What do you think the world will look like in 20 years?
L.S.: It is hard to say because if you asked someone 20 years ago what the future would look like today, they would have probably envisioned it completely different.
I recently held a workshop in Lebanon from the Netherlands using a robot – so I beamed into Lebanon, talked to the people as if I were there in the room. Drivable robots are also available now. For example, my friend from Canada beamed into one of these robots in Las Vegas, I beamed into another one from the Netherlands, and we both attended a conference as if we were in Las Vegas together. We visited booths, saw a presentation, had tea together, all from the comfort of our own living rooms. If you had told me I’d be doing that 20 years ago, I wouldn’t have believed you.
When borders dissolve, the possibilities really start to open up. For example, someone in Romania can work with a team in San Francisco, or a team in Vietnam. Sometimes you need that one guy or girl with that unique skill that nobody has – and what if that girl is not from the city you are working in?
There are also many people in the past that have been limited by location. For example, military spouses, disabled people or retired people. Military spouses have a hard time finding stable work because they are constantly moving. And there are many people who have retired, but still want to practice their craft or continue working somewhere. Because of remote technologies, there’s a whole new pool of people to choose from for the work that needs to get done.
BC: So do you think that in the future robots will do everything?
L.S.: I think robots should do the boring work and humans should do the interesting work. And maybe in the future not everybody will have to work full time, and maybe that’s ok. Do we have to work 40 hours a week? Why? That was a random number set by Henry Ford. Maybe we could work 20 hours a week and the rest of the time we could travel, or work on our hobbies, or spend time with our family, or just do whatever we want.
BC: What do you think is the influence of technology on productivity?
L.S.: Recently, I see a lot of companies struggling to go from being time-oriented to results-oriented. When we can work from anywhere, the focus is more on what you get done, not how long it takes you to do it. Spending the whole day at the office only means that you spent the whole day in the office, not that you were productive.
Summing up, the good thing about technology is that it dissolves borders but it requires a new way of working. What it means to be “present” at work is changing, and it’s opening a lot of new opportunities. A lot has happened in the last five years. I encourage people to explore some of the new tools and think about how they can use it in their own lives. My Work Together Anywhere Workshop is a great place to start.
Lisette Sutherland is Director atCollaborationSuperpowers.com, a company that helps teams work together from anywhere. She is also the remote team manager for the all-remote freelance team at Happy Melly.