Founder and Deputy Chair of orgvue. Rupert Morrison is an entrepreneur, economist, and visionary in data-driven organizational management.
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Latest U.K. figures by the Mental Health Foundation have shown an estimated one in six people will have experienced a common mental health problem in the past week. Meanwhile, in the U.S., nearly one in five adults live with a mental illness of some kind. These figures are stark, yet sadly, they’re unlikely to be surprising. As a society, we’re so inundated with numbers, many of us have become numb to their impact.
But I’m frequently reminded. I’ve lost count of the number of people who’ve spoken to me following a keynote speech or conference to relay the emotional toll and difficult periods that have taken place during times of business transformation. They don’t talk about the numbers or the bottom line. They’re acutely focused on their people because they’ve seen firsthand the consequences of business transformation done badly—the most common being adverse impacts on employees' mental health.
When it comes to transformation, I’ll be among the first to reiterate the importance of a data-driven approach. I did write a book on data-driven organization design after all. But, data is no substitute for compassion. We cannot lose sight of humanity during times of transformation. Here are the fundamentals in getting it right.
Sacrifice shock for certainty.
In many businesses, transformation planning often results in layoffs and downsizing. That’s particularly true when considering the commercial side of transformation. And sure, that’s one part. But organizations must take an informed and proactive approach—that’s what the concept of rightsizing is all about.
Yet, ongoing disruption is giving business leaders a blinkered view. They’re tirelessly working to navigate boom and bust cycles, overlooking the fact that planning the workforce is the best route to success.
This parochial outlook and short-termism are what create shock. Imagine you’re a senior executive in a global business. You’ve never had performance issues. Imagine amid a turbulent year for the business you’ve been sent to an assessment center to determine your ongoing suitability for your role in line with a potentially new business strategy. Now imagine, after being put through all of that, you’re let go and told your role and your services no longer have a place in the future strategy of your company.
The immediate reaction is likely to be one of shock. That’s because what’s lacking is a clear case for change communicated with clarity from the very outset: a way for people to understand the why.
This all comes back down to humanity over data or numbers. For most of us, work isn’t just a transactional thing. It’s a central part of our identity, our ego and our self-esteem. If the strategy isn’t clear, people won’t be able to understand, much less accept, tough decisions. When tough decisions are thrust upon the workforce, it causes a breakdown of trust and certainty. This is as crucial for the people directly impacted by transformation as it is for those who stay behind in the organization. They must be able to understand in order to move on, and clarity is paramount to making that a reality.
Keep pace, and move with compassion.
If you’re looking at the organization with a short-term mindset, you by default become reactionary to the ebb and flow of disruption. That type of thinking leaves businesses floundering and making decisions too late. When decisions are made slowly or on the back foot, compassion becomes the first casualty.
It’s simple: Pace gives space. By moving quickly and asking the right questions, business leaders can give themselves time to react and take back control over the speed and direction of travel. The first part of this is not succumbing to magic numbers. Instead, prioritize the right fundamentals. That means adopting a long-term focus that takes into account the right work required to deliver against long-term goals, the right workforce and team to deliver against those goals, and the right time over an extended period.
Next, strike the right balance. This is something that ultimately has to be a judgment call made by management based on the best data available and with an informed view of the risks involved. That all comes down to analysis, planning and replanning based on multiple scenarios, and applying that continuously. It’s adopting a "what if" mindset.
When it comes to planning your people, it’s vital to ask the right questions. Do you have the capital? What are the financial or external forces at play? Can we sustain delays if things don’t pan out as quickly as expected? The point is, creating a plan or strategy isn’t one moment in time. It’s planning for multiple moments with multiple plans based on multiple scenarios. It’s not just an employment contract, it’s a duty of care.
Make your process personal.
Humanity trumps data, every single time. You’re not just dealing with a bunch of data points. Every figure and every node represents a human being, a piece of work or a competency they’ve developed. And because we live in an era of data overload, we forget there’s an emotional attachment and a story behind what the data tells us.
So, while you can’t model for every eventuality, you can be deliberate in how you’re anticipating the future and its relevance and impact on your organization. It’s crucial to anticipate with purpose, run "what if" scenarios continually and not open yourself up to getting caught by surprise.
A long-term focus is a crucial aspect of a good strategy and strong leadership. That’s non-negotiable. This focus takes into account mega-trends and optimizes beyond the quarter and fiscal year-end. Global organizations must recognize this if they’re to get to grips with what work needs to be achieved, assessing which teams have the skills and competencies to complete it, and only then reshaping their organization. Any individual who forgets the human stories behind the data has lost sight of the game and risks failing to carry out the duty of care organizations have to their people.
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