How often do we hear from leaders that decisions are “business decisions?” “We are going to lay off 12,000 people because it’s a business decision.” “Our ROI (return on investment) is our top priority.” “Focus on the bottom line only.” These are phrases that I hear day in and day out from business owners and leaders and the people who work for them. They are understandable phrases from exhausted and stressed-out leaders and yet, how do those words affect those who work for these leaders? Trust me. Not so well.
Maybe a company needs to lay off 12,000 people, but if you are saying it’s just a business decision without understanding that it’s a holistic decision that will affect thousands more than just the ones you are laying off, employees will be dramatically affected by these layoffs. Also, the families of the laid off as well as the others at the organization are all impacted. Decisions aren’t made in a tunnel, or at least they shouldn’t be. Decisions by excellent leaders are made holistically and with thought and compassion for the people and processes that these decisions impact.
Maybe even more important than the verbiage is the decision making that only regards the bottom line. Yes, you can cut 12,000 people and that will change your bottom line, but will it mean continued excellence to your customers? Will it motivate your employees and thus reduce turnover? Is your bottom-line decision a good one for the long run or is it one made in fear and desperation in the moment without considering a meta-view of so many other aspects of your decision?
Decisions by excellent leaders are made with thought and compassion for the people they impact. #leadership #business #work #career #compassion Click To TweetAlso, what interpretations will your employees make when they hear that these are business decisions? Will they begin to question if you care about them or their families? Will they feel as if they are simply cogs in a money-making wheel or actual contributors to a greater good? One of the top reasons that people leave organizations is not feeling appreciated and useful in that setting. If I’m here just to make you (or the organization) money, I’m not going to be too motivated, and I may feel as if my work is simply transactional and not transformative. Is that how you want your people to feel?
If not, it’s time to rethink “It’s a business decision” both in the words you are using and the behaviors you are choosing. Step back from the fear of losing money for a little while and take a meta or holistic view of the big picture, the players, the processes, the long-term ramifications, and yes, the bottom line. The bottom line alone won’t give you the clearest picture and is not the best path for decision making.
Love,
Lisa Kaplin Psy. D. PCC