Taking tough decisions as an EO business – practical steps
The UK might have narrowly avoided a recession so far, but that doesn’t change the pressure many companies continue to face. These are tough times, and tough times bring tough decisions – particularly when restructuring, redundancies and cuts to hours are involved.
Elon Musk’s approach understandably made global headlines (for all the wrong reasons) when he took over at Twitter last year.
In fact, the CIPD put the billionaire on the cover of its People Management magazine as an example of ‘how not to make people redundant’ and went on to explain the legal, commercial and personal considerations a good employer should instead apply, in its informative article within.
So if you’re the leader of an EO business taking tough decisions in the current climate, what should your priorities be? What is best practice?
Here, our Associates Lisa Fryer and Kathie Robb share their insight and five practical steps to support leaders to take tough decisions when they are EO.
Do your research – then clarify options
You have a tough decision to make. Start by investigating your options, clearly setting out each one’s pros and cons.
‘This will help when it comes to seeking the support – or even agreement – from stakeholders,’ says Kathie. ‘Remember that in an EO business you may need your Trust Board’s approval if redundancies or significant changes to your structure are being considered.’
Next, do your research and check current best practice with trusted sources, including the CIPD and your legal advisors or accountants. They will help you navigate the statutory requirements and meet minimum expectations.
You should be mindful of your business’s values, ethos and wider reputation too.
As Lisa (who is also JGA’s Operations Manager) explains: ‘There’s nothing wrong with working to minimum statutory requirements, but if your customer base values trust and respect highly, you should take this into account.
‘Younger customers and the power of social media mean that a poorly-considered action can have a significant impact on your reputation (as seen at Twitter) – risking your business’s sustainability in the longer term.’
Keep your employee-owners informed and engaged
One of EO’s benefits is that the best solutions can come from within.
In companies with a genuinely effective EO culture, the employees will already understand your business’s challenges and direction of travel.
‘While it might be scary to explain that tough decisions must be taken, if your employees are already informed and engaged it’s likely these won’t be a huge surprise,’ Kathie points out.
‘Values-led businesses tend to work with transparency and appreciate honesty, so bear this in mind.’
Avoid taking hasty action under pressure
So what mistakes might leaders make when taking decisions in today’s climate – and how can they avoid them? Lisa identifies the top two as taking ‘hasty action’ as a result of feeling pressurised because of rapidly evolving situations – and not seeking expert advice.
‘There’s a risk of just doing what might have been done before, even though legislation, attitudes and expectations might have changed,’ she says.
Another pitfall can be the informal leaking of concerns and challenges, causing unnecessary unrest, speculation and distress.
If your network is raising concerns, Lisa recommends working with ‘general observations rather than specifics’. Save those details for trusted specialist advisors instead.
Seek expert advice on best practice HR if you need it
Having the right HR policies in place (ideally from the start) will also support leaders when they face tough choices.
‘Investing time in an HR policy for restructuring and redundancy might not be your priority when all is well, but it will give your business a solid basis if needed later,’ Kathie explains. ‘Flexible working, career breaks and contractual flexibility as an employer might also afford a more open discussion / conversation when the tough times hit.’
Don’t forget to ensure any HR policy is updated to keep it legally compliant. You should also take account of changes in attitude and expectations, especially around restructuring and redundancy. Seeking expert external advice can be particularly useful here.
‘Any Trust Board worth its salt will be asking the operational leadership to identify the current top challenges facing the business and, more importantly, what plans are in place to mitigate their impact as early as possible’
Kathie Robb, JGA Associate
Draw on the insight and value of your Trust Board
As you’d expect, sound governance comes into its own when tough decisions need to be made.
In an EO business, the Trust Board can add real value, with its oversight of the business risk register and role as a conscience for the Operational Board providing a positive support for effective decision-making.
‘Taking a more measured approach and looking through the longer strategic lens, the Trust Board can ask difficult questions during the good times and increase scrutiny and challenge as situations change,’ Kathie reveals.
‘Any Trust Board worth its salt will be asking the operational leadership to identify the current top challenges facing the business and, more importantly, what plans are in place to mitigate their impact as early as possible.’
‘Smoothing the curve of change and helping to minimise any shocks – this is where sound governance can pay real dividends,’ Lisa adds.
Support your leaders to deliver change well
Of course, tough decisions don’t only affect those on the receiving end of difficult news. Leaders are people too so a good EO business should be providing them with the right professional (and personal) support to deliver change well.
‘It’s easy to assume that senior leaders will be capable and ready to communicate and support the delivery of tough decisions,’ says Lisa, ‘but the business should check that those who will be responsible for the execution of any plans are well-informed and up-to-speed on all communications, decisions and what is open for discussion.
‘The business should also provide the opportunity for this group to feedback and access specialist advice, even if it’s through an internal lead. Lastly, if you want to deliver and execute tough decisions well, you’ll need to demonstrate empathy at all levels – remember this isn’t the same as sympathy.’
Taking tough decisions as an EO leader – practical steps
It’s a lot to take in. So what five top practical tips would Kathie and Lisa offer to EO leaders taking tough decisions in challenging times?
1. Take time to take stock as soon as possible. Don’t get wrapped up in the day-to-day – you need to be heads-up to the horizon so you can limit any surprises. Check with your networks for any incoming trends or concerns to ensure nothing slips through. Chances are, other business leaders will be considering similar challenges so ask around and share what you can in exchange.
2. Speak to specialist advisors before you get to the crunch. Seeking their input early could save time, energy and keep the whole situation a lot calmer in the long term.
3. If you’re an EOT, fully utilise your Trust Board. Ask for their challenge and be prepared to listen and act on their questions. Trust Boards tend to have employees on them, frequently from positions that are not senior leadership, so their experience and perspective can be invaluable.
4. Engage with your governance and wider employee groups, where possible. If you’ve identified an incoming problem and they’re able to support with solutions (however creative) this may lead to a smoother outcome.
5. Don’t assume you’ll get everything right. Remaining alert to how any change is being managed and experienced by your employees can make a huge difference. If your business already supports open and effective two-way communication, fewer employees should be frustrated or begrudge any personal impact in the longer term. Graciously accept feedback from employees about their experiences, acknowledge where improvements could be made for the future and appreciate their honesty.
Want to know how JGA’s transition, people and governance services can support you and your EO business to take tough decisions in challenging times?
Doughnut economics – the challenge and opportunity for EO
Doughnuts, hosepipe and the future of the planet… not quite the mix you’d expect to find in your usual business lecture, but then Kate Raworth isn’t quite your usual business lecturer. She’s the influential economist focused on making 21st century economics fit for the ecological and social realities of today.
She was also the inspirational speaker at the Employee Ownership Association’s annual Robert Oakeshott Lecture at Bayes Business School in London last week.
Kate’s topic? ‘Redesigning business with Doughnut Economics’ and, specifically, the opportunity for employee-owned businesses to help society meet the challenge to change.
As she explained: ‘Currently, we are a world perilously out of balance, overshooting our planetary boundaries. We need new theories, business models, government policies and ways of living to turn this around…. We need to become regenerative and distributive to thrive.’
Her challenge to the audience of EOA members and advocates was clear: ‘Employee ownership is intentionally distributive by design – can it be regenerative too?’
Redesigning business to be a force for good
Our MD Jeremy Gadd attended the event and was intrigued by what he heard from Kate and her colleague Enrich Sahan, Business and Enterprise Lead at the Doughnut Economics Action Lab.
He was also interested in Kate’s response to the questions the audience asked, including his own about the most common ‘yes but…’ she hears when discussing doughnut economics with businesses.
The answer? ‘Yes but… the market or my shareholders won’t take it,’ she revealed. ‘The beauty is we’ve shown the design can change that.’
‘It was certainly a thought-provoking afternoon,’ Jeremy says.
‘What was so appealing about Kate’s presentation on doughnut economics wasn’t the academic interest it stimulated or the ‘yes but…’ question, but how easy it is to see why employee-owned organisations are by their nature well-placed to embrace the concept and vision that was shared. They’re the ideal recipients of doughnut thinking!’
Why? ‘Because when people understand the challenge they face, the choices they can make and are given the freedom to make these choices, empowering them through the culture of employee ownership releases so much positive energy,’ Jeremy replies.
‘This energy can be such a force for good and if, like me, you believe that business can be a force for good and that true change will only come through cultural entrepreneurship, then the scary challenges we face every day become exciting opportunities to embrace.
‘That feels a little easier when you have a genuine stake in the place where you work.’
Empowering employees to make a difference
Of course, for this to happen in practice, employee ownership needs to be more than a description on a piece of paper. The ability to maximise both its commercial and social potential requires a genuine culture of shared ownership across all levels of the organisation, which takes time and energy to evolve.
‘Currently, we are a world perilously out of balance, overshooting our planetary boundaries. We need new theories, business models, government policies and ways of living to turn this around…. We need to become regenerative and distributive to thrive’
Kate Raworth, ecological economist and EOA guest speaker
In our work at JGA, Jeremy says he’s often asked: ‘How do you know when a business has really embraced employee ownership?’. This question was on his mind as he listened to Kate’s view that ‘being an EO business is a very good starting point for redesigning business’.
His own view is that it starts with clarity about the responsibility, opportunities and rewards of EO.
‘People freely share information, ideas and challenge,’ he explains. ‘The employee owners have a clear sense of purpose, understand their role in the organisation and believe they truly matter and can make a difference.
‘You know when a business has really embraced EO because you can see, hear and feel it all around you. There’s a palpable belief that anything is possible.’
Looking forward to a ‘brilliant year’
The afternoon started – and closed – with the opportunity to network with other EOA members as well as meet several of the EOA’s team who had travelled down from Hull to host the event, which was sponsored by Brabners LLP.
This included EOA Chief Executive James de le Vigne who said he was delighted that the first in-person Robert Oakeshott Lecture for three years had attracted such a strong gathering of ‘employee ownership pioneers and advocates’.
Even without the prospect of more doughnut economics, he confirmed he was ‘very excited’ for the EO sector’s future as he predicted a ‘brilliant year ahead’.
Want to know how JGA’s transition, people and governance services can support you and your EO business?
Coaching 2023: Why it's still worth it for leaders
It’s the start of a new year, usually a time for fresh beginnings, but even the most resilient businesses would probably say they’ve ‘had enough’ of change. Budgets are tight, with a squeeze on spending. So is this really the time to invest in coaching for your leadership team?
‘Yes,’ says Corrine Thomas, JGA’s change expert and Coaching Lead. Corrine knows this is exactly what people would expect her to say, but points out that change – and change programmes – will continue to impact every sector throughout 2023. This makes it even more important that leaders are equipped to manage change well.
Why? Because despite the recession there’s still a strong job market.
‘People are choosing to leave employers if they’re not treated as individuals and their input recognised,’ she explains. ‘Getting your people into a place where they feel motivated, strongly connected to your company and engaged, means they’re more likely to stay, be loyal, and make change programmes happen.’
‘Ultimately, it’s the people within a business who will determine whether a change programme succeeds or fails.’
Supporting leaders to navigate change
Corrine has built a career around supporting change at an organisational, professional and personal level.
Often her work is a blend of all three, as at JGA where she is now leading our team of experienced executive coaches as they deliver our refreshed coaching service: Coaching through Change.
She’s excited that the programme uses Engage, a powerful evidence-based digital toolkit, to assess the psychological readiness and impact of leaders facing change.
Building collaborative senior teams
Coaching is a crowded market, so how is JGA’s Coaching through Change programme different? And why is Corrine confident that it delivers good value for companies facing change right now?
The key is in three words: readiness for change.
‘In a challenging economic environment, Coaching through Change enables individuals to assess their own readiness for change and, with the support of a coach, identify practical actions to overcome any hurdles,’ she explains. ‘This allows them to feel confident, capable and emotionally committed to the change.’
Corrine also points to the programme’s positive impact on the way in which teams work together.
‘Building high levels of trust and having open and honest conversations sits at the heart of this,’ she says. ‘Coaching through Change brings the leadership team together to explore each person’s strengths and the areas they need to work on to be a high performing team.’
The programme includes facilitated workshops which guide leaders to engage in deeper conversations and constructively challenge each other to create collaborative working relationships.
‘Risks and issues that arise are discussed and addressed more rapidly than before,’ she adds.
Changing leaders’ mindsets to achieve results
This is confirmed by initial feedback from the first EO client businesses to engage JGA’s Coaching through Change support.
As one leader told Corrine: ‘We had a brutally honest conversation yesterday after our workshop. This has been needing to happen for about six months. I’m so proud of us – the session really helped us.’
Corrine reveals that participants have found it ‘invaluable’ to be able to reflect on their feelings, thoughts and ideas in their sessions.
‘Guided by our experienced executive coaches, they have enjoyed the space to explore what they want to do to change their mindset. This has increased their confidence, motivation and commitment to the challenges they face.
‘Our Engage survey has been key to starting conversations around how open to change each leader feels. It has provided an accurate reflection of their mindset and, with the support of the coaching, everyone has taken practical actions away to work on.’
At a time of recession, Coaching through Change will ensure that organisations and their leaders avoid the costly impact of poorly-managed change.
Want to know more about how JGA’s Coaching through Change service can support your organisation? Get in touch here.
JGA @ IRM UK's Business Change & Transformation Conference 2022
Most of us can probably guess why developing personal resilience will support businesses to deliver change effectively, but did you know it can also get in the way of success?
This surprise fact (and the neuroscience behind it) was just one of the insights shared by JGA’s Corrine Thomas during her session at IRM UK’s Business Change & Transformation Conference Europe in London last week.
Corrine, who is our Coaching Lead, was at the event with our MD Jeremy Gadd to offer ideas and practical tips based on her own research into resilience involving professionals working in change.
She used her interactive session to explore resistance to change and how resilience can support change readiness.
Supporting resilience to prepare for change
Starting with an overview of personal resilience, she then covered resilience at work and how personal resilience can support, or hinder, the success of a change programme. She also shared practical tips to build resilience for individuals and teams, welcoming questions and feedback form the audience at the end.
‘I was asked if everyone resists change, even people who work in fast-changing entrepreneurial environments,’ Corrine reveals.
‘I explained that we all go through an emotional reaction to change and can adapt very quickly in some contexts, but the process can take longer in others. In many business environments there’s a lot of change, yet we do take time to adapt and be ready for making changes.’
Corrine was also asked about the value of connecting with others and talking about the challenges involved in change. ‘I replied that if, as a leader, you model the behaviour you’d like to see then this will set the norm,’ she says. ‘If it’s normal for people to reach out to colleagues when faced with challenges, then people are more likely to do this.’
Challenging the ‘norm’ to deliver successful change
As well as delivering her own session, Corrine enjoyed learning from other change experts at the conference. ‘There were many high quality presentations and I left with plenty of new ideas to put into practice,’ she says.
‘We all go through an emotional reaction to change and can adapt very quickly in some contexts, but the process can take longer in others’
Corrine Thomas, JGA Coaching Lead
Her top four conference sessions were:
Be More Pirate: Alex Barker, co-author of How to be More Pirate
‘This was about being prepared to do things differently. It can be hard, but that’s how change happens. Alex talked about being willing to go into the unknown and taking small but bold steps.’
Challenging the Narrative and Enabling Effective Change: Dr Debra Paul, MD, AssistKD
‘Debbie spoke of how ‘agile’ and ‘value’ have become buzz words with little attention to what they actually mean when delivering change. She proposed a model for getting to the essence of change and delivering it effectively.’
‘Change? Plunge into it, Move with it and Join the Dance’: Jim Bird, People & Change Partner, University of Leeds
‘My takeaway here was Jim’s advice to engage people in change early, focus on communication and engagement and assess its impact on people, processes, information, technology and the organisation.’
Connected Change: Mark Williamson, Head of People Consulting, KPMG
‘Mark spoke about the importance of taking a holistic view of transformation and embedding the people aspects of change across all of it.’
Putting your people at the heart of change
Corrine strongly agreed with the need to ‘put your people at the heart of any change, creating an environment where everyone can have their say’.
As she points out: ‘Employees want to be engaged, feel they belong and be connected to your company’s purpose. Understanding how to align their personal values and purpose with your business’s purpose and mission is especially important during times of change. It’s important to appreciate others’ perspectives.’
The IRM UK conference was a major gathering of change professionals. So did anything surprise Corrine this year?
‘There was still a lot of talk about agile methodologies and tools to enable change,’ she says.
‘These frameworks support change and it was refreshing to hear people talk about the tension between slowing down and taking time to listen to the voice of employees – versus the pressure to be more agile and implement a solution quickly. I’m a big believer in the value of taking small steps towards change.
At JGA, we support values-driven organisations to prepare for and successfully navigate their own way through change, with our range of Transition and People services. To find out more
How resilient are you as a leader, business and team?
How resilient is your organisation? Resilience means different things to different people, but it’s usually about our capacity to recover quickly from setbacks: to stretch beyond what we thought were our limits, and then spring back into shape.
However, for Corrine Thomas – JGA’s Coaching Lead and an expert on transformational change – there’s more to resilience than having the strength to ‘cope’. Resilience is also about being able to use adversity or a challenging transition as an opportunity for positive growth.
As she points out: ‘Resilience is about how we as individuals, leaders and teams find ways to get through and learn from the hard times. Resilience involves behaviours, thoughts and actions that anyone – and any business – can learn.
Building a culture of resilience
So how can your company build resilience to support your positive growth?
For Corrine, it starts with recognising that every organisation is made up of people who handle life’s pressures differently – and navigate change at varying speeds.
‘Everyone, regardless of level or role, experiences difficulties in life,’ she points out. ‘This can range from unexpected events that take us off track to more traumatic challenges such as job loss, serious illness, uncertainty in the economy or world events like the war in Ukraine.
‘Each change brings a tide of thoughts and strong emotions. Yet people generally adapt well over time to life-changing and stressful situations, due in part to resilience.’
Placing your people at the heart of what you do
Are values-driven organisations generally more resilient?
Corrine agrees that she would expect them to benefit from their inclination to put people at the heart of what they do – provided they bring that commitment to life.
‘By creating a supportive and trusting environment, tapping into the individual’s strengths and being there for them in difficult times, both the organisation and their people will thrive.’
At an organisational level, she highlights the importance of taking steps to maintain sound governance, with good financial control, robust processes and a clear strategy for managing risks in place.
‘This strong foundation will support the organisation to navigate, learn and grow when faced with difficult times,’ she says.
‘Resilience involves behaviours, thoughts and actions that anyone – and any business – can learn’
Corrine Thomas, Associate and Coaching Lead
Practical steps to strengthen resilience
So what should you do next? Corrine shares her practical tips.
If you are an organisation who wants to build a resilient culture:
Place your people at the heart of your organisation to create a culture where everyone feels trusted, valued and understands how their contribution connects to your purpose and goals.
Prepare yourself by focusing on agility, so you can confidently adapt to challenges and changes in the business environment.
Invest in learning and innovating for the future, to support your ability to ‘flex’ to the demands of your sector and nurture sustainable growth.
If you are a leader who wants to foster resilience in your team:
Create an environment where each member understands the purpose and values of your organisation and the behaviours required to bring these to life.
Set clear goals that are meaningful to each person so they understand how they are contributing to meeting your organisation’s strategic aims.
Spend time as a team, face to face or virtually, to foster an environment where each person feels a sense of belonging and connection to your organisation and team.
If you are an individual who wants to nurture your own personal resilience:
Notice what is going on in your thinking at difficult times, because this can impact how you feel. Identify when you might, for example, be getting things out of proportion or blaming others when things go ‘wrong’.
Acknowledge those negative thought patterns – practice reframing them into something more useful.
Explore your strengths: what are you good at? Tap into those strengths wherever possible, and particularly during hard times.
‘By creating a supportive and trusting environment, tapping into the individual’s strengths and being there for them in difficult times, both the organisation and their people will thrive’
Corrine Thomas, Associate and Coaching Lead
The right support at the right time
Strengthening your organisation’s resilience won’t happen overnight. It needs thought, time and (when useful) experienced professional support to help embed the mindset and behaviours required for positive growth.
At JGA, we support businesses, leaders and teams to strengthen their resilience at both an individual and organisational level. Our expert transition, people and governance services include accredited professional coaching, leadership development and board development support.
To find out more, please get in touch.
Corrine Thomas will be speaking on ‘How Resilience can support Change Readiness’ at IRM UK’s in-person Business Change & Transformation Conference in London from 13 to 15 June.
Find out more at https://irmuk.co.uk/events/business-change-transformation-conference
Mental health, work and your business: how the right culture can help
How ‘healthy’ is your workplace? Not just physically, but mentally too. What’s your culture when it comes to your people’s wellbeing: is it inclusive, is it aware?
Sick leave due to poor mental health was the top cause of time off work in 2021, costing UK employers an estimated £43bn and making this year’s Time to Talk Day (3 February) more important than ever.
Run by Mind and Rethink Mental Illness in partnership with The Co-op, the day aims to create supportive communities by encouraging people to talk with family, friends or workplace colleagues. And to seek professional help, when they need it.
So today, at JGA, that’s what we’re doing – making time to talk, along with thousands of others, as part of the UK’s biggest conversation on mental health.
Reducing the stigma
As individuals, we know how being more open about mental health can be useful. But why is reducing the stigma also important for organisations?
It’s the right thing to do commercially – poor mental health has a direct financial impact on your performance, through lost productivity, higher absence levels and increased staff turnover. Strengthening resilience will drive your success.
It’s the right thing to do culturally – it’s not rocket science: who doesn’t want to feel engaged and fulfilled by their work? A mentally healthy workplace will make this a reality for more of your people and sustain a positive mindset through good times and bad.
It’s the right thing to do for your brand – your employee wellbeing support is now on the radar of an increasing number of socially-conscious customers, investors and potential employees. It’s part of your commitment to ESG .
Whether your teams are on site, remote or hybrid working, your approach to your employees’ wellbeing is now a core part of who, and what, you are.
Creating a mentally healthy workplace
This shift has been accelerated by the practical and, for many, emotional impact of the pandemic on how we live and work – with more of us doing our jobs from home and/or caring for family members.
‘Organisations have long invested in supporting their employees’ physical wellbeing,’ explains JGA Executive Coach Corrine Thomas. ‘Now the importance of good mental health is being recognised in the workplace too.
‘It’s being talked about more openly and is on the agenda in team meetings. Many companies are investing in training to support their employees to stay mentally well.’
Sustaining an inclusive culture
So the message is clear: supporting your employees as ‘people’ makes good business sense.
But what does this mean if you’re employee-owned or considering EO transition? Does your model bring you a natural advantage when it comes to workplace mental health? Yes – and no.
There’s no proof that employee-owned businesses ‘do’ workplace mental health better. However, the energy that the best EO organisations invest in creating an inclusive culture, based on honest communication and effective employee engagement, should (in theory) give them a head start.
The same could also be said of other values-led businesses, where many would expect a commitment to ESG to put the quality of their employees’ experience of working with them at the heart of what they do.
‘Mental health exists on a continuum: we all have times when we feel low – and other times when we feel on top of the world’
Corrine Thomas - Executive Coach
Time to talk – and listen
As Corrine explains: ‘Employee-owned and other values-driven organisations consider their people to be their biggest asset. They invest in building a working environment where trust and respect are important, and where every person feels that they belong to a community that matters.
‘When things are tough for an individual the organisation will give them support and be available to listen. When the organisation is facing tough times, the individual remembers the support and is motivated to go the extra mile to make a difference.
‘In many EO organisations, teams will take action together, share their ideas and listen to each other around how they are feeling every day. Checking in on a personal level becomes a normal part of the working day.’
Small steps, positive impact
So on Time to Talk Day, what will Corrine be doing? Encouraging people to take small daily actions that contribute to their mental health. ‘It can be as simple as taking 10 minutes out of a busy day to do something you love, have a chat with a colleague, or pause and notice one thing you’re grateful for,’ she says.
‘Mental health exists on a continuum: we all have times when we feel low – and other times when we feel on top of the world. By taking a few simple daily actions everyone can create a set of tools that will support them when times are tough.’
If you would like to know more about how JGA can support you to create a more inclusive and fulfilling workplace culture through our Transition, People and Governance services, please get in touch here.