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
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
Free the office slaves
Free the office slaves: No more working day.
The 9-5 working day has come to signify office slavery.
In actual fact though, most knowledge workers work longer than 8 hours a day. A 2011 survey (ASHE) suggests that the average manager in the UK works over 9 hours per day, while extreme hours among certain groups (bankers and lawyers in particular) regularly involved sustained periods of working up to 120 hours a week.
What do set working hours signify?
Extreme hours hurt us. A study by Alexandra Michael, published in 2012, followed investment bankers over a 9 year period. The report concluded that people suffered physical, mental and emotional problems, including depression, a greater number of sick days and relationship breakdown.
Even normal hours often hurt us though. Studies suggest that those in the office spend a large proportion of their time unproductively. They might be checking personal emails or social media sites, or simply carrying out their basic work in a very un-productive fashion. Anyone spent ages staring at a spreadsheet unable to make head or tail of it? Ever fallen asleep in a meeting when supposed to be coming up with ground-breaking new ideas?
The energy cycle
Energy, creativity and brilliance rarely arrive on demand. Instead, human beings work in cycles. We can focus for limited amounts of time. After that we need rest in order to recover.
The ‘ultradian’ pattern, as it is known, normally depends on working in cycles of 90 minutes, with energy troughs in between – normally of about 20-30 minutes. The working day takes no notice of this, however.
Sometimes of course, we enter that wonderful state that Mihaly Csikszentmihalyi referred to as ‘flow’ – where we are hardly aware of the passing of time because we are so absorbed by what we are doing. When we manage to achieve this, the idea of cutting it off with a commute home or a lunch hour seems crazy.
Manage energy, not time
Radical companies understand the need to manage energy, not time. Sometimes that means that workers can work far in excess of the normal working day – developer stories of being so absorbed in a problem they didn’t leave the office until 3am are common. At other times it means workers do far less than the traditional 8 hours and in a different way – starting late, for example, leaving early to pick up children; taking a walk.
No working day means that life and work are more closely blended. It’s not unusual for radical managers to answer emails late at night or to come up with ideas as they sit on a beach with their family. They are not oppressed by this (“oh no! the phone is beeping again!”), partly because they are just as capable of taking a nap when they feel like it or running errands in the middle of what others would call the ‘working day’.
Being Radical
Leo Widrich is a co-founder of Buffer, a company which allows people to manage multiple social media accounts more easily. He manages his own day by splitting it into 90-minute windows and then achieving a certain number of tasks – one per window. A side benefit is that this helps increase focus on just one task at a time, eliminating much of the cost of task-switching. He then tries to plan his rest periods. Instead of allowing these to be filled up with emails or meetings, he goes out for a snack or reads a book. This ensures genuine downtime that allows the brain to recharge and creative ideas to swim up from the subconscious.
So what should we do?
It’s simple really – set people free to work as much as they want, when they want.
There’s no need to say ‘do you mind if I leave early today because blah blah blah’. Just go. It can help to share with others what you’re doing and how to get hold of you so they can co-ordinate with you, but there’s no need to ask permission.
Nor is there any need for that irritating parade of being the last to leave the office, or the first to get there. If someone is emailing late at night it’s because she had a thought and wanted to communicate it, not to demonstrate how dedicated she is.
Some managers might start sweating in light anxiety. How do you know the person won’t bunk off, won’t take advantage, won’t drop their productivity etc.? The answer is that regardless of hours put in people know if someone isn’t pulling their weight or isn’t performing. You can still ask poorly performing people to buck up or get out. But most people want to do well and want the company to do well so they work hard, but you’ve created an environment that helps them work effectively.
You can just trust them.
And just that one piece of advice – trust – frees up a lot of your own time in or out of the working day.
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