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.
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Rejecting roles
Rejecting roles: That’s marketing’s job. You need to talk to IT.
Having roles is considered essential by most organisations. We’ve read dozens of business blogs, HR advice articles and even management training courses that insist clearly defined roles lead to better results, greater productivity and higher motivation. Without clear definition of roles, they warn that tasks get missed, no-one takes responsibility, the office is chaotic and individual motivation drops.
We disagree.
The writers of this advice have grasped the outcomes they want – people taking pride in their work, everyone focusing on delivering value, individuals coordinating and collaborating – but they’ve applied the wrong solution.
They’ve confused roles with responsibilities.
That may not sound like a big deal, but we think it is. Rigid role definition has some major downsides. We believe it hurts companies and individuals, costing them in creativity and happiness.
Most organisations intend their role definitions to be a way of signalling particular specialisations, expertise and responsibilities… but instead, the definitions swiftly harden into barriers, marking out territory which is defended against ‘interference’ from others. Have you ever been told to back off by the marketing manager for commenting on the new advert? Been refused access to the code base by the developers, ‘in case you break something’? Been told to leave presentations to ‘the sales guys’ or forecasts ‘the finance guys’? At the extreme, you may have your opinion rejected with a straight-forward ‘well it’s not your job to worry about x, it’s mine!’.
Individuals may also use their role definition as a way of avoiding unpleasant or boring tasks. This ‘that’s not in my job description’ approach ends up making the company less efficient as well as eroding team motivation. I remember organising a last-minute marketing stunt when I worked at Unilever. I was booking a double-decker bus to turn up and I wanted to check it would actually fit into the office forecourt. The marketing assistant nipped down to Reception to check. An hour later, she returned. The security guard had refused to measure the gateway and if it was beneath the dignity of a security guard, then she reckoned it was beneath the dignity of a marketing assistant as well. So I borrowed the security man’s tape-measure and checked the gateway (you could – quite literally – have fitted a bus through there). Anything wrong with doing my own measuring? Absolutely not. Anything wrong with wasting an hour of time arguing about whose job it was? Plenty.
Roles are comfortable – but bad for us
It’s very human to defend our own work and our own opinion. When we can dress this up with the authority of experience, expertise and organisational separation – all the better. Except it isn’t. Rigid role definition acts as a barrier and can stifle innovation. It can also make things slower and less efficient.
If a customer rings up with a problem, they want a solution, not to be told that only part of their problem can be dealt with by this department, and they must be passed on to billing or whoever to deal with the rest of it.
It’s not great for individuals either. Sticking to just one thing may mean our knowledge gets deeper, but also narrower. We can get bored or worse, so convinced of our own expertise that we can’t take on other points of view.
Being Radical: Sticking to the start up way
In many start ups, a lack of defined roles is the default position. There is not enough money to hire specialists – instead developers must learn to present to investors, marketing managers must be able to create and manage their own customer data, and everyone must have a grip on the financial assumptions as well as a grasp of the their product (this often means some grasp of the technology).
When entrepreneurs look back on the early stage of their companies, they often comment on wistfully on the diversity of work and of how close to the customer it meant they were.
Jeff Bezos, CEO of Amazon, recalled being the ‘mailroom grunt’ in the company’s early days, driving books to shipping and courier companies in his 1987 Blazer. But this doesn’t scale, right? Jeff Bezos is not still doing deliveries. Actually, he is. He spends a week every year in the warehouse. It’s not a PR gimmick, because he refuses to set up interviews when doing it. It’s an opportunity to stay connected to his responsibility – leading Amazon – and not the role of CEO. That includes really understanding conditions for employees – something for which Amazon has received a lot of criticism – and staying close to core services like order fulfilment.
Another trick used at Amazon is to have individual employees who have no role at all. Bezos has ‘shadows’, people who simply follow him around. It means there’s always someone free to chase a wild idea or set up an experiment – and it recognises that a responsibility like ‘envision Amazon’s future’ requires several people, not just a single role.
So what should we do?
1. Responsibilities not roles
Some radical companies go for a very broad responsibility ‘provide value to the company’ and say that how this is fulfilled is up to the individual. Others go for more precise responsibilities: ‘help the customer’ or ‘make sure we comply with financial regulations’.
The point is that how you fulfil these needs can require doing tasks which, in other companies, would be seen as belonging to differing roles.
2. Trust people
A lack of roles makes people more responsible, not less. Tasks rarely get missed because everyone knows they have total responsibility for the work – no tester will come pick up the programmer’s bugs; no finance controller will correct over-optimistic projections.
3. Trust people some more
A lack of roles doesn’t mean that everyone will try to do everything. People naturally gravitate towards what they’re interested in and what they’re good at. If someone is convinced she’s a brilliant illustrator and everyone else insists the stick men cartoons are rubbish, she will soon stop.
4. Value dissent not consensus
No roles doesn’t mean you have to design by committee. Heated arguments are common, and that’s fine. Even if people don’t agree at the end of the debate, the important thing tends to be to air the problem. Opinions can be rejected; a decision can still be made, risks can still be taken…
By: Helen Walton from Gamevy
Remote Work: Stories of People and Teams Doing Great Things
Get ready to pack up your laptop and hit the road!
Today, I specialise in facilitating remote work. And it was an experience ten years ago that turned a light bulb on for me — in a way I would have never expected.
I was living in California at the time and belonged to a social community interested in the future, technology, and staying healthy. Every Sunday, we’d meet up for a hike together. One member of the group was particularly interesting to me because he was working on a startup idea I’d never encountered before: he wanted to eradicate death.
To the outside world, it appeared that he was building an online project management tool. That was a very “normal” startup idea, even for ten years ago. But what most people didn’t know was that he was building the tool so that longevity scientists from all over the world could collaborate and solve the “problem” of aging.
He had found that the best people needed for this unusual collaboration were not living in the same place. So his vision was to build a tool that they could use to work together remotely.
It was a true “aha experience” for me. Once we remove the issue of being geographically dispersed, we can gather the best, most enthusiastic people together virtually to work on the most challenging problems imaginable.
I was hooked by the concept and started interviewing people and companies working remotely to see what they were doing. Down the rabbit hole I went!
In the past, we had to go to a specific geographic place in order to access the information we needed for our work. Now, that information is likely accessible from anywhere. And this gives us the opportunity to play with new ways of working and new business models.
I’m increasingly seeing a move from a model of work-life balance, which assumes that work and life shouldn’t overlap or blend, to work-life fusion, where the lines between work and life blur.
Work and Life: No Longer at Odds
Jeffry Hesse is an agile coach working with a distributed development team of approximately 40 people at a company called Sonatype. He loves his work. He also loves mountain climbing, photography, and spending time with his grandmother.
Because he can work from anywhere, Jeffry combines his passions by working while traveling. He started by trying an experiment with his remote team. He spent one month traveling in Argentina — and didn’t tell his colleagues he would be on the road.
He wanted to test how productive he could be while traveling, and if anyone on the team would notice.
Admittedly, it was hard. Finding a decent internet connection in Argentina was one of the most challenging aspects. He tried coworking spaces and staying with friends — and his technical know-how came in very handy while experimenting with various VOIP phones. But while it was hard work, and sometimes shaky, he managed to get his work done without the distributed team noticing that he was on the road.
While being a digital nomad may seem like a radically unconventional way of working compared to the traditional 9 to 5 job, it gives us a glimpse into what’s becoming possible…and increasingly common.
What Does It Mean Today to Be “Present”?
The tools that allow us to work in new ways are developing at breakneck speed. One of the most exciting examples of this is telepresence. Telepresence is a combination of technologies that give you presence somewhere other than your actual location. Your smartphone and standard video conferencing tools — even Facetime — can all be considered forms of telepresence.
My favorite form of telepresence? Robots.
The Revolve Robotics Kubi, for example, allows someone to call in (via video conferencing) to any tablet device. The difference is that you can move the tablet from side-to-side and up and down and control where you are looking from your own laptop.
For instance, if you are a remote participant at a meeting where everyone else is sitting together in a room, you can turn yourself to see who is talking. Other telepresence robots allow you to beam in to what is basically a tablet on wheels, and drive yourself around using the arrow keys of your keyboard. Schools use these for kids who can’t attend classes in person. Museums use these to give remote tours. Even doctors use them when specialists are scarce.
These interactive sensory experiences bring us closer to replicating what it’s like to be together in the same room. And the technology gets better and less expensive every year, opening new options all the time. Holograms are just around the corner!
How Businesses Are Changing
Because of these new technologies, more and more people are like Jeffry, seeking to balance their work with the freedom to pursue their passions. What it means to actually “be at work” is changing rapidly — businesses are evolving as well. Here are three examples:
A Virtual Network With Global Impact
Happy Melly is a social entrepreneurship network of individuals and small businesses dedicated to happiness at work. Supporters include coaches, creatives, authors, speakers, managers, and entrepreneurs. Members of Happy Melly help amplify and globalise great business ideas through virtual and in-person workshops, blogs, guides, books, tools, and videos.
I joined the network to get business advice from people who shared my same purpose and values. With the help of “colleagues” from all over the world, I learned how to structure and scale my company, Collaboration Superpowers, so that myWork Together Anywhere workshop could be offered online and in person around the globe. I’m also now the remote team manager for Happy Melly.
Serendipity Turned Them Into a Team
The team at StarterSquad first started working together (remotely) when a client hired them for a software development project. They didn’t know each other before the project started, but over time, the team clicked.
At one point, the client unexpectedly ran out of money — but the team members weren’t ready to part ways. They decided to find other clients so they could stay working together. They now operate as a self-organised team of entrepreneurs, specialising in building minimum viable products for software startups. In addition, they offer seed funding for startups whose ideas they believe in.
Forget About Facetime
Another company, Teamed.io, prides themselves on having no central office, no meetings, and no phone, Skype, or video calls. The company is made up of a large group of freelance software developers that have never met or spoken to each other. They work entirely through chat on task management systems.
Specific people are brought together for projects depending on the skillset that’s needed. Projects are broken down into very small tasks. Programmers are paid as they complete tasks, and they are not paid if the tasks are not completed. When the project is over, the team is dissolved and everyone moves on to other projects.
Extreme? Perhaps. But it does show ways of working that were never before possible.
Leveraging the Remote Advantage
There are numerous benefits to being able to work from anywhere. Some resonate most for solopreneurs and digital nomads as a source of empowerment to work and travel. Others please HR departments and hiring managers who need to build virtual teams or want to offer flexible benefits to their employees. A few are aiming to raise visibility around worker happiness and the environmental benefits of not commuting.
The ability to tap into information and collaborate with colleagues from anywhere has opened up new possibilities for work-life freedom. People can work on the things they are most passionate about, and businesses can hire people who love what they do versus people who are just doing their jobs.
If you haven’t thought about what’s possible with remote collaboration options in a while, you might be surprised by what’s happening — and what’s possible for you as well! I encourage you to do some more exploring. We’ve come a long way, and it’s only getting better from here.
By: Lisette Sutherland from Collaboration Superpowers