Lean, learn and lead – recovering staff performance after corporate trauma

Cuts and efficiency drives can create problems in public sector organisations and staff need support

Article written by Mike Robinson at the Berkshire Consultancy.  Full details here.  The Berkshire Consultancy are facilitating two workshop for us in September:

Delivering Cost Reduction and Efficiency Savings in the Public Sector - click here for details
Masterclass in Contract Management and Supplier Relationships - click here for details


Lean, learn and lead – recovering staff performance after corporate trauma

Just as trauma patients need a combination of remedial support (medicine, physio and encouragement), so too do staff in organisations who have experienced corporate trauma.

This trauma could be a radical restructuring ("You still have a job, but more stress for the same reward"), or more commonly this past year, a "cost-out" programme involving redundancy and significant change for the survivors ("You still have a job, but most of your workmates don't"). Staff understand the reality of the current economy, they see the news, they intellectually "get it", but emotionally they struggle to come to terms with the outcome.

Both the public and private sectors have embraced ongoing efficiency programmes. Continuous improvement and lean or Six Sigma have become part of business language, with the result that staff believed they were as efficient as they could be. While previous recessions found plenty of fat to trim, there is a sense in the UK that we have become leaner in productivity terms – the public sector has seen widespread outsourcing and other measures to keep costs down. When this notion is challenged by radical cost-out programmes yielding 20-40 per cent savings and redundancies, the shock felt by staff and management is palpable.

The first effect can be one of short-term corrections, either adding staff back into the organisation (temps/contingent labour to shore up output) or taking second-order savings as the full extent of efficiency measures are exploited around the business (cuts in HR from having fewer staff to represent).

Often, though, there is an extended period of stasis. No one has much appetite for further shaking out of cost; staff are wary, management are coming to terms with the new risk profile they have to manage, and leaders are hoping they have done enough to restore profitability/efficiency without destroying the fabric of the organisation.

It is here that a 'lean, learn and lead' approach comes into play.

When applying lean principles to an organisation, we advocate that auditable benchmarks are established to demonstrate that efficiencies are sustainable. The period before the trauma could be seen by the cynical/hard-nosed as one of latent inefficiency, or by the enlightened/optimists as a valid investment in resources for the upturn. It can be confirmed which it is by measurement and validation of the lean actions taken. This helps staff understand why cuts were made, and why they are where they are.

The learn part ensures staff understand that the efficiency measures are sustainable, and they are intensively coached in developing the appropriate new skills to deliver more with less.

The final part, lead, is for the leaders of change, the management board or the senior civil servants, to develop new skills to lead the change. Better influencing, change management skills, better delegation and working through stakeholders are all part of this.

As with a patient in intensive care, during the post-trauma period staff should be closely monitored and listened to by managers, who look for evidence of improvement. When they see it, they should acknowledge and celebrate progress made. This approach relies on senior staff who can work with the behavioural aspects of change, while adopting a tough efficiency approach on process and systems.

The result is staff who are less traumatised by radical change, and who feel supported in getting better in the organisation.