COMPANY SPONSORED PRE-RETIREMENT COUNSELING. IS IT A GOOD IDEA?

76 million US employees are at or near retirement age. The benefits of proper pre-retirement planning for your employees are many and obvious. Yet most of the millions of baby boomers who have imminent plans to retire are ill prepared. They face five main hurdles:

(1) Raising Health Care Costs. Health care costs will conservatively raise anywhere from 12% to 18% per year. As the technology of keeping us alive longer only continues to improve, there will be no relief to the cost of doing so.

(2) Disappearing Pensions. More and more companies are eliminating their company sponsored defined retirement plans. And they are doing so while not significantly increasing their defined contribution offerings.

(3) Inadequate Personal Savings. Not withstanding the recent turmoil in the stock market, Americans simply do not save enough money period, let alone for their retirement years. Study after study indicates that we save less per individual of any major industrialized nation.

(4) Forced To Retire Far Sooner Than They Had Hoped. In a recent study of retirees and pre-retirees, 50% planned to work past age 65. Only 13% have done so. Most of been forced to retire because of unexpected health problems or loss of their job. More than 30% of retirees planned to work part-time after their formal retirement, but only 10% have been able to accomplish this goal. The same reasons have prevented the other 90% from working part-time: poor health and no job opportunities.

Of course this presents a double whammy for retirees who are forced to quit working early and/or cannot get part-time work. They have significantly less time to contribute to their retirement savings and they have to use what savings they have accumulated for more years than they anticipated.

(5) Unrealistic Expectations About Reducing Costs. Only 10% of retirees state that they have significantly reduced their expenses from their pre-retirement levels. Most say that with inflation and higher taxes, it is just impossible to lower your expenses from what you were paying just prior to retirement and keep a similar standard of living.

So your employees need pre-retirement help, but why should companies pay for it? That’s a good question. Why should a company invest any more money in an employee that will retire and no longer be of benefit to the company? This question is especially relevant in light of today’s tough economic times.

We believe that the answer is both no and yes! Companies should not get involved with offering financial advice, either in-house, sponsoring outside providers or by subsidies. Despite disclaimers, the risk of lawsuits stemming from financial downturns or unexpected catastrophic situations are just too great. Even without the potential legal consequences, a company would risk the tarnishing of its image and, therefore, its employee branding. If employees lost a portion of their retirement nest egg by following recommendations made by an organization or individual somehow linked to the company, they would invariably blame the company to some extent.

Fewer companies provide this benefit for these very reasons. Other companies only offer it to their top executives, who presumably have more financial sophistication. With the preponderance of financial companies out in the market today, all levels of employees can find needed assistance on their own for reasonable cost. Investment advice is no longer confined to the wealthy.

However, there are at least four benefits to a company that provides some modest pre-retirement counseling to its employees:

A. Improve Employee Branding. Goodwill will be generated with current employees. This type of effort demonstrates that the company does care about its employees and is willing to invest in their well-being.

B. Create A Pool Of Experienced Part-Time Workers. If structured the right way, retirement counseling can provide options to the retiring employee to return to the company in a limited role. This might be especially beneficial to a company if the retired employee fills lower level vacancies to which they would not normally do so. This allows the company to staff positions with extremely qualified (perhaps over qualified) personnel who know the company and are happy to assume vacancies that have less pressure.

C. More Voluntary Lay-Offs When Needed. If employees feel better prepared for retirement, they are more likely to accept requests for voluntary lay-off packages when the company offers it. This is especially true if the employee has reasonable prospects for part-time work with the company. The company would have less need for in-voluntary reductions in staff and the problems inherent with them.

D. Better Succession Planning. With better planning for retirement, comes a more orderly flow towards people leaving their jobs. Companies have more advance notice to plan for openings and fill vacancies.

Some modest pre-retirement counseling does benefit the company. A good program can be constructed that generates these positives while being cost effective. If you'd like to explore this concept further, please feel free to get in touch with me.

For More Information:
http://www.gatewayinternationalgroup.com/
http://www.larrymaglin.com/
http://www.lawrencemaglin.com/
http://www.joekran.com/
http://www.josephkran.com/

Staff Review by: Joseph (Joe) Kran, Lawrence (Larry) Maglin, and Rick Spann

Leadership Best Practices for Human Resource Professionals

The results of a recent global study of 1770 human resource professionals identify key leadership practices tied to effectiveness.

Effective Practices for Human Resource ProfessionalsAlthough Human Resource professionals play a vital role in organizational development and growth, little actual empirical research on the characteristics of effective HR professionals actually exists.
We, Gateway International Group, Inc., a global leader in assessment-based individual and organizational development, thought it would be helpful for our clients to consider this kind of data. In a recent global study of leadership effectiveness among human resource professionals we found that a number of leadership behaviors reliably distinguish superior leaders (the superstars) from less effective ones.
The Study
1770 HR professionals from over 670 organizations were included in the current study. Each leader completed 360TM leadership assessment and development tool that measures 22 dimensions of leadership practice (what leaders actually do) and 22 dimensions of leadership effectiveness (how effectively they're perceived by their bosses, peers, and direct reports).
A number of key practices were identified that significantly predicted higher leadership effective ratings.
The FindingsIn order of importance (starting with the most important) superior HR leaders:

• Analyze the future impact of their decisions and understand the impact of these decisions throughout the organization.

• Maintain in-depth knowledge and expertise in their area.

• Demonstrate an active concern for others and form supportive relationships.

• Energize others, getting thementhusiastic and involved.

• Clearly express their thoughts and ideas, keeping others informed of their expectations.

• Are comfortable being the one in charge and seek out opportunities to be influential. They know and accept the fact that they will be under constant scrutiny.

• Use effective persuasion to build commitment to their ideas and initiatives.

• Challenge the perceptions and mandates of superiors.

Study Details
Each participant was evaluated during ongoing developmental programs, by their bosses, peers, and direct reports. Participant breakdown by geographic region, management level, and industry are presented below.
A weighted mean procedure was employed to combine the rating of bosses, peers, and direct reports for each participant. An overall measure of leadership effectiveness (based on the summation of 22 effectiveness scales) was regressed on ratings of 22 common leadership practices. As a set, the 22 practices accounted for 59% of the individual variation in overall effectiveness.Relative importance measures were calculated for each predictor and are displayed in the figure below. Bars indicate the percent of the variation accounted for by each predictor. Light bars indicate an inverse relationship (i.e., higher levels of the practice were associated with poorer effectiveness ratings.


For More Information:
http://www.gatewayinternationalgroup.com/
http://www.larrymaglin.com/
http://www.lawrencemaglin.com/
http://www.joekran.com/
http://www.josephkran.com/

Staff Review by: Joseph (Joe) Kran, Lawrence (Larry) Maglin and Rick Spann

“It’s like getting fired twice!”

More Laid-Off Workers Being Left on Their Own

In Weak Job Market After Outplacement Runs Out

When a terminated employee’s outplacement services run out before he or she has successfully landed another job, it’s like getting fired twice.

In this softer labor market, job searches are taking longer than in recent years. More than two-thirds of displaced employees who receive traditional three-month outplacement programs — generally, the most common program given to executives and middle managers — are not finding new jobs before their outplacement programs expire. They are being left entirely on their own after the clock runs out.

Companies that provide limited-time outplacement programs to their terminated employees in today’s weak job market are violating the top three reasons why outplacement is offered in the first place. Outplacement is provided to displaced employees to help them: (1) find a better job faster than they could on their own, (2) reduce their anxiety during their unemployment and, thus, their frustration with the company and (3) help maintain the morale of those workers who remain with the organization. Yet, companies that provide outplacement programs to terminated employees for only a limited time in today’s weak job market, risk not achieving these objectives.

Displaced employees are facing stronger competition as they vie for their next jobs. According to research by Gateway International Group, just as many companies are continuing to terminate employees this year as those that are hiring staff. Only 21 % of employers are adding employees, while 20% are continuing to cut staffing levels.

Gateway International Group’s innovative outplacement programs can offer home-based, personal career coaching with no time limits. Gateway guarantees that 100% of its program participants, through personal one-on-one coaching, will achieve their desired objectives before their programs expire — regardless of how long this takes. At best, 40% of the participants in traditional, limited-time outplacement programs reach their objectives before their program expires.

Gateway International Group has eliminated the requirement for outplacement participants to go to an outplacement firm’s office to get the service and support they need. Most people don’t want to leave home for outplacement coaching. There has been a dramatic decline in the number of affected employees who actually take advantage of and use traditional outplacement firm offices. They just don’t come to outplacement offices anymore — no matter how much you encourage them.

Personal computers and the Internet explosion have made searching for employment from the convenience of one’s home the preferred method of job-hunting for millions of Americans. Many displaced employees already engage in online searches for new employment, or found their last job this way, and prefer to continue home-based job searches without the inconvenience of having to travel to an outplacement firm’s office.

According to a recent Gateway International Group survey of 300 white-collar professionals nationwide, 92% of workers surveyed said they preferred to receive employment counseling from their homes, rather than traveling to an outplacement consultant’s office, as long as they have professional assistance available via telephone and the Internet. Only 8% of employees surveyed said they needed to receive outplacement assistance in an office setting. In addition, 87% of respondents said they felt that outplacement assistance could be provided just as effectively over the telephone as in face-to-face meetings with outplacement counselors.

Most importantly, 93% of respondents said they felt outplacement services should be provided until they have successfully achieved their objectives — and not just for a limited amount of time, like traditional outplacement firms provide.

Questions You Should Ask

If you were unemployed right now, in the current tough job market, which would you rather receive: an outplacement program that expires within a given time period or an outplacement program with no time limits that lasts until you have found new employment? Now you have a choice!

If you were unemployed right now, which type of outplacement program would you rather have: one that necessitates you having to drive to the outplacement company’s office to receive service and support, or one that you can access from the convenience of your own home? Now you have a choice!

Have any displaced employees ever complained about their outplacement services expiring before they found new employment? Now you have a choice!

Have you ever had to grant outplacement program extensions to displaced employees whose services ran out before they found new employment? Now you have a choice!

Have any displaced employees ever complained about having to drive long distances to an outplacement provider’s office, especially with the price of gas? Now you have a choice!

Have you ever personally visited the offices of your outplacement provider to see how many of your displaced employees are regularly coming to the outplacement company’s office to fully utilize their outplacement programs? Now you have a choice!

If you were displaced from your job and had a spouse or partner, would it be of value if the company that displaced you also offered you a spouse or partner employment assistance program? Now you have a choice!

Call Richard Spann at 1-800-376-8176, or e-mail him at rick.spann@gigincmail.com so that we can discuss if our “at home” or “virtual” product line is right for your company.

For More Information:
http://www.gatewayinternationalgroup.com/ http://www.larrymaglin.com/
http://www.lawrencemaglin.com/
http://www.joekran.com/
http://www.josephkran.com/

Staff Review by: Joseph (Joe) Kran, Lawrence (Larry) Maglin and Rick Spann

Get yourself connected

by Walter Sonyi, Jr.

There is nothing new about networking - haven't we all heard that it isn't what you know but who you know? The difference is that networking today has taken on a new magnitude of importance. It has been described as an "art", a "way of life", and some people even make claims for its spiritual value. It is something more than a business lunch and less than a political campaign, and it is a subject everyone seems to have an opinion on.

So what, exactly, is networking? Essentially, it is the modern term for making lots of business acquaintances, the understanding being that if you amass enough of these acquaintances, you will derive enormous opportunity for financial and personal gain. Of course, amassing them isn't quite enough: you have to work them correctly. Here is where networking becomes a science, understood by a new breed of professionals with bulging databases who have the credentials to represent the industry of the truly connected. These gurus bring us such compelling concepts as "bootstrap", "pigpen" and "power" networking. Despite the jargon, the prodigious literature on the subject does throw up several recurring themes, which you might do well to remember when prowling for that crucial contact or planning a major change in the course of your career.

Such events are all very well, but what if joining a networking group sounds like worse torture than a Britney Spears novel (yes, it does exist)? Can't you survive perfectly happily going about your job with diligence and skill and leave networking to the extroverts and the name-droppers? Well yes, up to a point. But if you want your career to thrive, you really have no option but to continually extend your range of contacts, whether you like talking to strangers or not. The good news is that you don't have to get to know anyone very well. You don't have to reveal deep truths, or even to possess any. You have to know people, lots of people. You will be known by who you know.

Malcolm Gladwell, in a brilliant New Yorker article entitled Six Degrees of Lois Weinberg, describes the "power in relationships that are not close". He recalls the 1974 classic Getting a Job by sociologist Mark Granovetter who reported that some 56% of professional and technical workers he interviewed in a Boston suburb had found their jobs through a personal connection. These opportunities mainly came about through what Granovetter calls "weak ties".

"Granovetter argues that when it comes to finding out about new jobs - or for that matter, gaining new information, or looking for new ideas - weak ties tend to be more important than strong ties" writes Gladwell. Think about that. We generally reckon that the most important and influential people in our lives and careers are those we are closest to. But these people tend to have similar interests and move in similar circles to ourselves. The real power of networking lies in an ever-widening circle of acquaintances, improving the likelihood that, following the logic of the six degrees of separation, you too can associate yourself with anyone in the world. Granovetter calls this "the strength of weak ties".

If, like me, you're convinced that networking is a necessary, if somewhat painful, activity, which may just reap unknown benefits in the future, then it, helps to be familiar with some of the techniques employed by the experts.

John Naisbitt, author of Megatrends, offers some sound advice: "In the networking environment, rewards come by empowering others, not by climbing over them." Herein lies the first rule of networking: the "givers gain philosophy" or as William Blake's puts it, more elegantly: "Always give without remembering, always receive without forgetting." If you set out to share what and who you know with other people, the chances are they will reciprocate, or at least remember your generosity when the time comes for you to call in a favor.

Just opening your mouth at an event full of strangers can require a lot of courage, especially if you are naturally shy, or feel you're the last person anyone will want to talk to. However, BBC radio producer Carol Stone, in her recent book Networking: The Art of Making Friends, points out that "the sternest people melt when they think you could be interested in what they have to say". If you have listening skills, then it shouldn't be hard to show them off when you find yourself in a networking situation. And be prepared to make the first move. "Do you mind if I join you?" is seldom met with the answer "yes, I do". Your own introduction then gives the other person the chance to launch into their story, and you're away.

Most of the networking gurus repeat another golden rule: keep your promises. How often has a person said they'd do something that might make a real difference to you, then completely forgotten about it? We're all guilty of it from time to time, and this is where good organization comes in. I know someone who is constantly interrupting conversation to write names and ideas in a tiny notebook - this gets irritating after a while, but at least he's the kind of person who does what he says he's going to do. Stone maintains a database of over 14,000 names, from which 1,000 get the coveted invitation to her Christmas party. When you operate at this level, there's no option but to manage your network of contacts like a military operation. The rest of us should just be sure to write down who we've met, with any action points, as soon as we can after the event. Waiting until the alcohol has worn off is not a good idea.

Some people approach networking as they would hunting. They beguile their way into their prey's company, stalk them until the perfect moment, and then pounce. I prefer a horticultural analogy: cultivate a wide variety of plants, and the chances are some will bloom or bear fruit when it matters.

So, when you next find yourself with the opportunity to network, don't fall into the habit of speaking only to those you already know. You can open up exciting new worlds for yourself: all it takes is some effort, a positive attitude, good manners and a little organization behind the scenes. All of which are easier to cope with than the school reunion or a round of golf. Unless, of course, you like that sort of thing.

Staff Review by: Joseph (Joe) Kran, Lawrence (Larry) Maglin and Rick Spann

VIRTUAL OUTPLACEMENT

CAN MAKE BETTER SENSE IN TODAY’S WORLD

Traditional outplacement for executives and professionals has evolved quite a bit over the last two decades. In past years, these employees were often provided with significant career transition support. They could often count upon the following:

A. Being assigned to one highly qualified, seasoned advisor. This advisor would often work with the individual for the duration of his/her job search. Most, if not all, work being done was on a one-on-one basis. Training and coaching were highly personalized.

B. Resumes and cover letters were written by experienced writers. The employee’s task was simply to review and approve them.

C. Having an individual office or cubical to make phone calls and conduct business. Often times, the individual’s phone was answered by a receptionist or a personalized message was developed for him/her.

D. Research and office support were done by office support staff. An experienced research administrator was there to generate all available information when requested. Letters were typed and mailings were done for the client.

E. Other professional support staff was available as needed. Retirement specialists, relocation experts and credentialed mental health practitioners were on call.

OBVIOUSLY TIMES HAVE CHANGED. Largely because of cost, assistance has been dramatically curtailed. Client companies no longer can afford these more comprehensive services and are still looking to provide quality services, but at lower prices.

In order to be able to make the adjustment to these lower fees, many career transition companies often have had to limit quality to make a profit, especially those companies who are part of larger conglomerates and, thus, have a higher overhead. Now, with some exception at the highest of levels, executives and professionals generally are provided with the following:

A. An advisor “of the day”. This advisor is not dedicated and is at the provider’s office to offer advice to anyone who seeks it. The employee is only able to speak with whoever is on call on any particular day. Although reasonably qualified, these advisors are not as sophisticated and experienced; they often work on a per diem basis for as little as $275 per day.

B. Employees are given templates so that they can write their own resumes and cover letters. The advisor will provide only basic editing and commentary.

C. No office, cubical or phone usage.

D. Modular training done at the provider’s schedule by another low level advisor. No additional support professionals to provide unique support.

Not surprising, employee satisfaction with the career transition services which are being offered is decreasing. But because of budgetary constraints, companies are hard pressed to do anything about it.

THERE IS AN EXCELLENT ALTERNATIVE. Virtual career transition services can make better sense. The cost of virtual vs. office based outplacement is very favorable. Virtual is no more expensive, often less. By using this delivery method, the employee receives many of the same high level quality components which were provided in earlier times:

A. High quality, dedicated advisor

B. All development/training done one on one

C. Resume and cover letters done by experts

D. Additional support personnel

AND WHEN GIVEN THE CHOICE, YOUR EMPLOYEES OVERWHELMINGLY PREFER VIRTUAL OUTPLACEMENT. In a recent survey, 91% of employees chose virtual over office based programs. This survey was done before the current high priced gas situation! The reasons for their choice were:

A. No travel time.

B. Their own technological sophistication as well as that of the systems used.

C. Work is done on their schedule, not the company’s.

D. Actually more personal. One-on-one vs. group/modular sessions.

E. Is more directed at specific client needs as opposed to those of the classroom.

F. Visual capability is available.

For More Information:
http://www.gatewayinternationalgroup.com/

http://www.larrymaglin.com/
http://www.lawrencemaglin.com/
http://www.joekran.com/
http://www.josephkran.com/

Staff Review by: Joseph (Joe) Kran, Lawrence (Larry) Maglin and Rick Spann

Making Layoffs the Right Way

by Walter Sonyi, Jr.

Ian Kerner saw it coming. The CEO of Arc, a New York-based Internet consultancy, knew by October that his business was slowing down, and that the next round of funding his investors had promised was probably not to going to come anytime soon. Something had to give; some people would have to go. "This wasn't a case of singling people out for performance issues. I knew I had to do something significant," Kerner says.

"Significant" was an understatement. After a "brutally frank" assessment of Arc's project pipeline, Kerner concluded that he had to let 40 employees go - half of Arc's staff, almost all of whom he had hired personally. "You have very few opportunities to get smaller, and if you miss the right moment to shrink, you go out of business," observes Kerner. "But I felt anxiety, guilt, a desire to help them, a desire to forestall the layoffs."

Firing good employees is one of the toughest tasks a business leader can face. And these days, it's a task that's getting harder to avoid. After years of learning how to manage growth, executives are now being reminded that they need to know how to run a shop in lean times, too.

"There's little worse you can do in the work world than take someone's job away when they've done nothing wrong," says Helen Drinan, CEO of the Society for Human Resources Managers.

Unfortunately, nearly half of U.S. companies fail to provide their managers with any layoff training. But there is a right way to go about downsizing. Do it well, and few of the victims will take it personally. Your "surviving" employees will remain committed to the hard work ahead as well. And your conscience will rest easier if you know your smooth handling of the situation helped soften the blow.

"Companies that are in business for the long term recognize that how they lay people off is just as reflective of what kind of company they are as how they reward people," Drinan says.

The best time to prepare your employees for a downturn is when things are going well. Discussing layoff procedures before they are even a threat allows for a calm, clear exchange of information, which will prove valuable in the event of actual bad news. Regular updates on company or division performance are essential. Keep your employees informed, and they'll be upset -- but not surprised -- when layoffs are announced.

Don't go it alone. Given the number of financial, legal and emotional pitfalls layoffs can bring, human resources professionals lead the effort in most companies. Whenever possible, consult with an employment attorney as early as possible, if only to avoid possible legal ramifications; employee lawsuits are up more than 2000 percent in the past two decades, according to Jackson, Lewis, Schnitzler & Krupman, an employment and labor-law firm.

Having been mandated to cut positions, how do you decide who stays and who goes? It's an easier assignment if you're excising an entire department or division. When Kerner assessed his company's prospects, he chose to close the firm's satellite offices wholesale, and trimmed certain types of jobs he didn't see a market for. "I decided the age of business plan writing was over, so the people I had to write plans weren't going to be as useful going forward," he says.

If, however, you need to cut with a smaller knife, the problem is unfortunately not as simple as keeping the best and jettisoning the rest. Employees with specialized skills (such as knowledge of a certain programming language or a crucial account) may be indispensable despite lackluster performance.

This still leaves you a fair amount of leeway. Redundant positions, relatively poor individual performance, or budget imperatives that suggest cutting higher salaries - all are potentially valid reasons to let someone go. Just be sure to document your reasons for electing each employee, so that in the unlikely event of a discrimination suit, you will have a paper trail to support your reasoning. In larger layoffs, you should make sure that no single ethnic, racial or other demographic group is overly represented on the cut list.

Look out for age discrimination in particular, cautions Lisa Moran, a New York employment attorney. Since age often legitimately correlates to slowing performance or higher salaries, you may find cause to concentrate your cuts on more senior employees. Just make sure you're acting on quantifiable data on performance or cost and not just a general sense that, for example, your 55-year-old salesman "isn't a good fit."

Moran also cautions clients about the WARN Act (Workers Adjustment and Retraining Notification). This federal statute requires companies that have at least 100 full time employees and that are laying off more than 50 of them to give two months' warning before making the cuts. "Most people don't know about this and they get into lots of trouble with it," says Moran. Companies that don't provide the necessary 60-day advance warning not only have to pay laid-off workers for the balance of the 60 days, but also may have to fork out punitive damages.

The next step is to develop a clear message explaining the layoffs. The message must be delivered uniformly to everyone concerned: affected workers, remaining staff, and even investors.

This is also the right time to give your lieutenants the help they'll need to do the job properly. The training should go through the layoff selection process, timing and other logistics, the message managers should communicate, and how to deal with the survivors. Training meetings also give managers a chance to write a script for the dreaded meeting. As unnatural as it may seem during an emotionally intense meeting, having comments prepared can help to keep the interaction from becoming personal.

Keep in mind that while human resources managers may be orchestrating the show, they're the conductors, not the performers. Whenever possible, employees should receive the word individually from their immediate supervisor. "It's awful when you've hired somebody, you've nurtured their career, and now you're going to do something that damages their personal and their professional lives," Kerner admits. "That's why a lot of managers want to delegate the job." He found that in most cases, people handled the news very well. "Most people understood and felt that it made sense."

Once you're ready, don't delay. Break the news early in the week, early in the day. Be concise. "After the initial shock, says SHRM's Drinan, "people can't even hear most of what you're saying anyhow."
A few crucial points to hit: Make sure the employees understand how their layoff fits into the bigger picture. "They have to leave with a story they can tell themselves, their colleagues, their family. If the person's going to be one of 25, they need to know they're one of 25," Drinan says.

Make it clear that this is a final decision from which employees will have to move forward. Avoid explaining how hard this is for you, too. This meeting isn't about you -- after all, you're still employed. Instead, concentrate on what the person is going to do immediately after your meeting. Have something on paper detailing the severance arrangement, COBRA (health insurance) rights, and what must be done with company equipment and facilities like phones and computers.

Once the pink-slip meeting is over, now what? Lawyers and human resources executives often disagree about how to handle the rest of layoff day.

I don't think people should have to leave right away. there needs to be a reaction process and space
Moran takes a harder line. "People say it's inhumane to lock down computers and escort people out, but that's what I would recommend as your lawyer. They're your files and your property," she says.

Closing laid-off workers' email accounts and access to your corporate network probably does make sense. If you're allowing them to use their desks for a few days, consider having your IT department provide a generic log-in so they can have access to the web and email.

Security guards, on the other hand, may be an excessive touch, sending a message that you either fear or mistrust your employees. "Their presence is very, very negative in a layoff situation," Drinan says. "I've been in companies laying off thousands of people. I've never had an experience where anybody has done something where you'd say someone call a guard."

Don't expect much real business to take place on the day the music dies. As people absorb the news and begin adapting, "you cannot over-communicate". You have to woo remaining employees to stay all over again." In your role as a leader, don't downplay or soft-pedal business conditions with the surviving crew. Give it to 'em straight, and don't be ashamed of what you've done. Show that you still believe in the company's future, and that what just happened, while surely unpleasant, was the right thing to do.

"Remember, it's about survival," counsels a Los Angeles media executive who recently laid off staff for the first time in his career. "If you don't do it, 100 more people are going to lose their jobs."

Staff Review by: Joseph (Joe) Kran, Lawrence (Larry) Maglin and Rick Spann

Leadership as a Relationship

In a recent article that appeared in Human Resources for the 21st Century, management guru and author Margaret Wheatley identified 7 practices to follow in dealing with the overwhelming change that's taking place in today's business environment.

One of those practices has particular importance to the style of leadership we encourage in our work as executive coaches.

It's the concept of "Leadership as a Relationship." People often think of leadership as a role — or a position — to which someone has been promoted. Instead, we believe leadership is a relationship among individuals.

The better the relationship, the more profound the effect leaders will have on others. In any relationship, the more trusting, caring and honest it is, the more successful it will be in overcoming challenges and facing the onslaught of change we are faced with on a daily basis. Successful relationships are the heart and soul of any successful business.

Successful relationships can overcome the "us" versus "them" mentality that so often manifests itself among employees and management.

Far too often, people in positions of leadership will insist that people follow them. They will demand blind loyalty and punish anyone who doesn't tow the line. These so-called leaders are leaders in title only. When someone is forced to follow, his or her performance is measured by what is expected — instead of driven by what is possible. The status quo may be maintained, but the status quo is rarely enough to survive and prosper in a business environment subjected to the outside forces and technology that change the global landscape daily.

To cultivate successful relationships, leaders must possess the emotional intelligence to not only understand their own motivations and desires as they interact with others, but also the ability to sense what others are thinking and feeling as well.

In today's environment, blind loyalty is a thing of the past. Instead, leaders must insist on individual integrity. They have to encourage people to give their best thinking. They have to ask for diverse opinions and be prepared to find value in opinions that may challenge their own perceptions. Instead of being "followed" into a false sense of security, leaders need to see through insincere platitudes. They need to shun bravado and the limelight and instead, champion the fruits of their relationships.

Leaders need to thrive on the rigorous thinking of others that forces them to act and react and fine-tune their own critical thinking.

Staff Review by: Joseph (Joe) Kran, Lawrence (Larry) Maglin and Rick Spann