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
Nine things I didn’t know nine years ago
It’s coming up on nine years since I first started slinging code in a professional setting. Professional here meaning with a salary, in an office, with other engineers, decent coffee and unreasonable deadlines.
Back then I was barely newly minted from school, and what I lacked in understanding I certainly carried in hubris. I remember being vaguely offended not to be on the list of Sweden’s top coders that year. No idea how they would’ve found me, but I still remember being annoyed by it.
What I’ve lost in hubris in the last nine years, I’ve gained in experience. I thought it’d be useful to punch down a few things that it would have been nice to know nine years ago — maybe it can help you, if you’re just about to take your first steps out of school.
In no particular order, here are nine things I wish I’d known when I started out:
- Experience counts for something. This is obvious, and maybe a bit condescending. But I remember the first time I saw a colleague in a live, heated situation pull up YourKit and hone in on the fact that we’d have two ServerInstanceFactories, not one, and that caused the entire app to go belly up. Or when I got literally smacked on the fingers for not using two-phased locking correctly. And a thousand other things. My first two years of working, what I mainly learned was that I basically didn’t know shit.
- People are messy. I’d love to know how many hours humanity as a total spends every day mediating between two or more angry 40-year old men. Most of the time, you’ll find reasonable people that don’t share your point of view on things, and you are not obviously right. There are tradeoffs. And sometimes people hold on to stupid ideas longer than they should, simply because they’re people. It’s a great irony that software development demands literal, logical, unambiguous reasoning while being complicated enough that you need to collaborate with ornate, arbitrary, ambiguous humans.
- You’re not logical, you’re biased. If there was one thing I was certain of was that I reasoned with logic and soundness and that I thought things because they were true. Things such as — we hire people only because of merit. Obviously. What I’ve learned is that any point can be argued from many angles, and who I am, where I was raised, what I studied and who my friends are all influence what I think is obviously true. I’ve also learned that I’ll likely never be Spock, and that the only reasonable defense is to invite different points of view, and accept that reasoning from different premises can lead to different conclusions, and still be logical and sound.
- You can use engineering for other stuff. As a flipside to above, I’ve also learned that the method of engineering that you learn in school and hone over the years is useful for a ton of other stuff than just programming. What engineering is to me is a way to define, decompose and reduce a problem space, and from that reason a solution under balanced constraints. Really, figuring out what you’re asking, and then answering that. And turns out that anything from sales, marketing, finance, design to analytics are super-susceptible to this. Don’t be afraid to dive in. It’s usually pretty simple to get stuck in.
- Users are not stupid. This one is a big one. When users complain about your product, it’s usually not because they’re stupid. Your dad, uncle or whatever that don’t really understand Facebook are not stupid. They just know other shit, and they haven’t learned this stuff yet. And that’s Facebook. They have literally hundreds of user researchers making Facebook simple. When your uncle doesn’t understand your app, it’s probably because it’s pretty unusable. Don’t blame users for that.
- Engineers have professional responsibilities. If you work with software in a company that makes money, chances are you have users. Even if you’re building Spotify, not a pacemaker, you still have a responsibility to your users. They’ve chosen your product, and if it sucks, they’re suffering and it’s your fault. This means that if you’re out chugging beer, the systems you maintain go down, and no one else can pick them up, you get a cab home and fix it. Obviously, don’t let a company take advantage of this responsibility. You should get reasonably compensated. But it’s still a responsibility. You can’t laugh off service disruption.
- Inverting a tree is useful, but not in the way you think it is. I’ve always been a strong believer in academic knowledge, and I loved taking the hardest courses. Particle filtering, non-linear signal processing, abstract algebra, advanced algorithms, etc. If it looked hard I wanted to know it. However, the point of Red-Black trees is not Red-Black trees. The point of graph traversal is not graph traversal. The point is, the tools you have shape how you solve problems. And the deeper the understanding of graphs you have, the easier it will be for you to see that a problem is a graph problem. Just like if you know enough economics, you can see business problems as market problems. And so on.
- Integrating early is always better. This is really mundane compared to all the other grand advice, but if you’re a bunch of people working on a piece of code, avoid branches and avoid submodules as much as possible. It’s really not better to work on your own branch until all is nice and then merge back. Merge early. Merge often. Otherwise you’ll spend a month merging. I promise. Like, I really, really promise … and actually, I guess there is grand life advice here as well. If you and someone you depend on disagree on something fundamental, don’t hold a grudge. Hash it out, as early as possible. Make sure you see eye to eye. The process and the product will be all the better for it.
- Simpler is literally always better. I saw someone write something like “Software engineers spend their first two years building complexity, and the rest of their careers managing it”. This is true. Really true. If you can avoid it, never write a dispatcher. Never write an orchestration framework. Don’t use Java if a bash script will do. Solve the problem you have now, not the problem you might have later. Nothing makes you feel as smart as a well architected, abstract framework for solving really complicated, general problems. Nothing makes you feel as stupid as not understanding how to debug it.
Anyway. This is my list. The nine things I wish I knew nine years ago. It strikes me now that current me would love to see the list Nine Things I Wish I’ll Remember In Nine Years. What stuff have I forgotten that would warp my perspective? I’d love to hear your take on either this, or what I missed on this list.
By: Marcus Frödin from Spotify
https://medium.com/@marcusf/nine-things-i-didn-t-know-nine-years-ago-fcbc757b268b#.9xksp8f8t
Save the date
Get ready to Spark, we’re happy to announce Spark the Change 2018 will be happening next June in Paris. We will announce speakers soon. We can’t wait to see you there!
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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