The Change Dude’s Blog

2010 Outlook – Creation or Destruction?

The fundamental impulse that sets and keeps the capitalist engine in motion comes from the new consumers, goods, the new methods of production or transportation, the new markets, the new forms of industrial organization that capitalist enterprise creates.

Joseph Schumpeter, in his key work Capitalism, Socialism and Democracy, originally published in 1942 argues that for capitalistic business to survive a continuing cycle of Creative Destruction must take place.  Certainly the last 12 months have provided the business community with a wealth of destruction.  The outstanding question is: Will 2010 offer an even greater abundance of creation?

I often describe the necessity for organization renewal to occur routinely in business to build the drive within employees to innovate and customers to advocate.  2010 demands Uber-renewal strategies.  I’ve seen some of the lowest employee engagement scores since the days of Roman slavery over the past few months.  Some scores well below 20% engagement.  Most are hanging on to their existing jobs just long enough to move on to other opportunities.

Low engagement of associates is even driven deeper as they have great concern over the organization’s commitment to its customers.  Organizations that pride themselves on the highest quality products and world class customer care worry that both these areas may be impacted.

What are your renewal strategies and plans for 2010?

Human Resource groups have experienced phenomenal levels of stress dealing with layoffs, the incumbent severance servicing and flagging morale of survivors.  As we enter the next phase of this economic cycle every organization needs to develop a clear path for 2010.

When planning for 2010, it is budget time for most organizations, take the offensive and build an environment where creativity and innovation can flourish. 

Top 5 Renewal Focus Areas:

1. Visible, interactive leadership.  Get out of the office and lead your organizations.  I can not overemphasize the importance of leaders to be seen and felt by every member of the organization.  This is not a time for “leadership via email”.  Be present as leaders and transparent with the vision of the future. 

2. Emphasize personal development.  Associates need to see and experience opportunities for growth and development.  Be creative in developing these opportunities across the organization.  Formal training programs aren’t the only way to develop skills.  Look to cross-functional “intern” programs where associates can experience work in areas of the company where their interest lies. 

3. Rebuild the community. We all need a sense of place and connection to our workplace.  Many of the nodal communities that were built over many years have been disrupted.  Put a special focus on developing ways for new nodes to form.  Bring social events back to the workplace and celebrate success, both individual and group.

4. Animate the Customer’s Voice.  Bring customers front and center to the organization.  Widely publicize and share customer comments, survey results, and recovery events.  Put a level of excitement into the associates around the value your product of service brings into the lives of every customer.

5. Money matters, pay attention.  Promotions, salary increases, bonus payments all play an important part in the emotional health of associates.  When the balance sheet allows pay attention to sharing the renewal with everyone.  Pay particular attention to those most negatively impacted in 2009.

Destruction is behind us…. give creation precedence.

October 21, 2009 Posted by thechangedude | Thinking About Associates, Thinking About Customers | Leave a comment