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Judith Cushman & Associates Retained Executive Search in Communications Judy Cushman's Blog |
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The Cushman Report To subscribe to the email version of The Cushman Report, please send a note to info@jc-a.com with "subscribe" in the Subject line. Click here to view past editions. The Cushman Report Breaking News, Trends and Information about the Communications Marketplace May/June 2002 The Market and Recognizing that We Need to Regroup This newsletter discusses the market and where hiring fits as we move into a recovery fueled by consumer spending. This is also the time to acknowledge how much a year of recession, the tragedy of 9/11 and the decline in the technology sector have impacted us personally. As we approach the summer (it was below 40 degrees last night in the Seattle area so approach is a good word) it is appropriate to regroup and regain perspective and balance. I attended a seminar discussing how an organization and its leadership should respond to downsizing and the needs of its team. In thinking about agencies and corporate communications departments, I don’t think we are examples of how it should be done, despite our expertise as professional communicators. The point made is, intellect aside, writing capabilities aside, organizational change is emotionally charged and we react to it at a gut level as a perceived threat. It takes knowledge, discipline, courage and leadership to help an organization through a downsizing. I also continue to explore building a revenue model for the COMDEX (and other) party lists and seek sponsors to provide the financial base to support this effort. Responses to my other idea about building a paid subscriber base to “The Cushman Report” (in addition to continuing to circulate a free short version of the newsletter) suggest I continue as I have been for the time being. Please feel free to forward this newsletter to friends and colleagues. They may subscribe at no charge by sending an email to info@jc-a.com with "Subscribe" in the subject line. If you would prefer to unsubscribe, please send an email to info@jc-a.com with “remove” in the subject line and your name in the body of the message. Judy, President, Judith Cushman & Associates, jcushman@jc-a.com (425) 392-8660, Issaquah, WA 98027 OBSERVATIONS ABOUT THE REPERCUSSIONS FROM 9/11 AND THE RECESSION “SURVIVOR’S SYNDROME” PERSONAL NEEDS COME FIRST COMMUNICATION, a TOP PRIORITY MAINTAIN YOUR BALANCE NEWS FROM JUDITH CUSHMAN & ASSOCIATES Economic indicators tell us that we are coming out of the recession fueled by consumer spending. Business growth and confidence in the strength of the recovery is lagging.. Companies I talked to earlier this year indicated they would be revisiting hiring decisions at mid-year and deciding if plans to add to staff would be implemented. My concern as I said in the last newsletter had to do with the sustainability of an upturn as we traditionally move into slower periods later in the third and fourth quarters. The midyear turn toward the positive is sluggish and I had hoped to see stronger signs of confidence by now. In the business cycle, a point is reached when the bandwagon effect kicks in—everyone is on the move, so companies gear up to keep up. We just haven’t hit that critical mass, yet. Once we do, the market will move very rapidly, since we are all wired into what everyone is reporting. From a timing standpoint, investing in early stage career planning and activating your to network are appropriate steps to take now. Positions won’t be filled quickly, but hiring managers anticipate they will be over the next several months. They are inclined to pay attention when a qualified candidate knocks on the door for a “get to know” meeting. I was recently interviewed for a forthcoming on-line “Wall Street Journal Careers” article about the impact of the recession on salaries and salary negotiations. When the story appears I will send out an alert. Meanwhile, here are my observations, which are in line with remarks in the last newsletter. As laid off employees continue to find the market tight, their attitude becomes more and more flexible about what work and salaries they will consider. It means that overqualified professionals are applying for positions at levels that pay below their normal range. By initially indicating an interest in a more junior position, they are immediately signaling their flexibility around compensation, driving the market down. Employers are not negotiating to force acceptance of reduced compensation packages, they are simply taking advantage, opportunistically of current market conditions. This approach applies when a salary range is mentioned at the start of negotiations or at the initial interview. It may well be the top of the range is at the minimum figure an overqualified candidate will consider. Or perhaps the lower end of the range for a comparable job (to the one lost) is now acceptable when 6-months ago it was not. Companies that normally would adjust ranges upward annually are under no pressure to take action, affecting salary movement into next year. With stock options in the recent past losing their value and appeal, offers today that include stock are discounted. While companies expect new employees to demonstrate confidence in the organization and stay for the long term (hence the stock options) new hires are just not that interested. Having left situations where the promise of a bright future vanished all too quickly, the focus is now on near term tangible benefits with specific dollar values spelled out in the offer letter, if that can be negotiated. It will take years before confidence and the desire for long term incentives will return. Recouping financial losses, having cash for deferred big ticket spending and replenishing depleted savings are the practical goals that cash or cash equivalents meet. Ranges that I have previously discussed remain stable. There is no upward pressure and I don’t anticipate any at least until the beginning of the New Year as hiring picks up. Overall, a good average deflation from early last year is in the order of 20% of base. For example, a position at $100,000 would now be at the $80,000 level. The life sciences industry, with the numerous Investor Relations, Public Affairs and public perception issues to respond to, is one area where communications professionals are in demand. Salaries have held up for experienced, qualified managers. Financial services, utilities, energy and health care institutions offer opportunities as well. OBSERVATIONS about the REPERCUSSIONS from 9/11 and the RECESSION Sitting where I do and hearing from so many professionals at all levels and ages, I wanted to report on what I feel is an important issue we are experiencing but not understanding. I also attended a recent seminar titled, “Revitalizing Your Organization after a Layoff, Personal and Organizational Strategies.” That was led by Paula Dillard (www.ascentpartners.net) where what I have observed connected with the underlying psychological issues she outlined, issues that we haven’t noted or acknowledged. A Series of Observations: The first example-- I was visiting with a newly promoted Director who had relocated his family to the PNW (Pacific Northwest). He had recently been given a much larger area of responsibility without any increase in staff. Meanwhile the company suffered losses, as had the rest of the industry, and no additional funding was in the pipeline. He had been working just to keep his head above water and was focused on “getting through.” When we talked, he was eagerly looking forward to a vacation and seemed mentally exhausted. He was coming to the end of a draining emotional and physical marathon. He also had experienced a family health crisis on top of all these pressures. That same week, virtually all the people in our profession that I talked to had experienced severe illness among close family members or had lost elderly relatives. It was a not a coincidence. Another example of overload: a normally well organized senior-level professional working for a Fortune 100 Company was supposed to have joined a group for an important phone conference. Hours after it had ended, I received an email saying she had lost track of the time, even though she had intended to join us, and had lost the details about the meeting. When we spoke later that day, she reported that she had missed several appointments and just seemed to be unable to control her calendar. I told her not to worry and launched into a 15-minute explanation of how she fit a trend. She had hit overload and her body was sending a clear signal that she could no longer ignore her needs. (She was not having a “senior moment”.) The Wall Street Journal on Tuesday, April 30th in the “In the Lead Column” talks about, “Trying to Contact Me? Manners and Business Get Lost in the Crunch.” The writer, Carol Hymowitz confesses that she is simply unable to keep pace with the hundreds of communications she receives each day; so she ignores them. She reports on a trend where people are concerned by how rude it appears we have become and how that is a serious problem. All of us, it seems from a personal perspective, hate hearing from a recording. From the company standpoint, executives say if they answered all their messages that is all they would do, especially considering the elimination of support staff. Staff assistants are a luxury when a company is downsizing, one they cannot sustain. The result is, as guilty or as stressed as managers feel about ignoring calls, executives are making finely honed decisions about what comes first on their to do list, what calls are top priority and work down from there, ignoring the rest. In essence, we are saying that we are working on overload every day. We cannot expect to finish our tasks or to ever have enough time to behave in line with our values about how we respond to people. This creates on-going stress. Yet another case study: a Human Resources Director when she was hired, negotiated working from home one day a week since she has an exhausting commute. She is equally if not more efficient working from her house, but there have been management shakeups and her new boss (one in series) keeps saying that she is needed in the office. Meanwhile, the company’s stock is being battered by the market and it is a high stress environment. The fact that she is not available in person for one day creates a feeling of uncertainty and disquiet for her boss. The Director was hoping the situation would change so that she could take the one day to work remotely. I told her there was no way that she could not expect to change her work schedule given what I learned about the psychological dynamics that come into play during difficult times. The toll we have paid: we are in an extraordinarily difficult period that has lasted for over a year. The impacts from the tragedy of 9/11 and the recession have not been fully recognized. Our bodies finally tell us we must take a break because we experience the harmful effects of on-going stress in the form of illness, fatigue and loss of concentration. That is why in a business where creativity and strategic contributions (thinking outside of the box) distinguish competitors, our decline in productivity is apparent. We have had too much to do to stop and pay attention to our physical and emotional needs and now all of the neglect is catching us with us. As we head into summer when we traditionally take a breather, health issues surface and we gain a perspective on just how high a toll we have paid over the past 12-months. Here are highlights from the presentation I mentioned that offer insights into the dynamics we are experiencing and what actions are necessary to help organizations and their people recover. To initiate change an effective organization requires a “Sustaining Sponsor” with the authority to legitimize the change and who has the authority over the individual(s) who will implement change. An Advocate is any individual or group that has an idea and is in search of a sponsor. If no sponsor can be found within a reasonable time-frame (which varies from organization to organization), that advocate will lose credibility and be seen as a pest and/or a negative influence. For all the good advice and knowledge that can be shared with agency leadership or heads of departments, if the case for improving organizational effectiveness is not having the desired impact, repetition will not succeed. Despite our expertise as professional communicators, there is no guarantee we can bring about change in our organizations.
The cultural reality of companies that have experienced cutbacks has a name: “Survivors Syndrome.” There are fewer people, less money and reduced resources yet there is more work in an atmosphere of fear, distrust, betrayal and anger. Behaviors reflect depression, stress, fatigue and the company is rife with rumors and blame. In stressful situations, personal needs come first.
When individual needs clash with business goals, personal values win out every time. Employees need to feel comfortable, to be understood, to feel welcome and important. Feeling comfortable translates at least partially to gaining control over the work environment. How many times have we heard that phrase, “I need to get this (program, team, project, schedule, budget) under control.” This is really the reason why a department head wants his people in the office, to feel comfortable and in control. Meanwhile, the company must serve customers, market itself, continue research to create value, plan for the future (despite the fact employees are struggling to survive day-to-day), manage resources, cash flow and remain viable. Under stress, we tend to be more rigid and revert to our least effective work style. We develop tunnel vision and charge ahead to do what must be done (and tune out information and feedback, e.g. we don’t listen well.) We put employee development and performance management on hold, feeling we are in a crisis situation. We tend to provide less direction and less communication when that is just what is needed. Communication should be the top priority to help mesh personal and organizational goals: to rebuild the organization, to let go of the past, to assist employees and to meet personal needs. Yet in a heads down, just get it done, atmosphere, these thoughtful and time consuming activities are ignored. The excuses are all too common: “there’s not enough time; I am on deadline and what I have to finish takes priority. Things are changing so fast I don’t know what to tell people and it makes me feel uncomfortable to discuss these issues.” During stressful times, the rumor mill goes into overdrive and what communication there is can be false, misleading and detrimental to the organization. Companies that do not provide adequate, candid information will find the gap filled by informal employee forums and web sites. To be an effective communicator and supervisor during these times requires a thorough understanding of your personality and your ability to be objective in emotionally demanding situations. Build on personality strengths and know where you are vulnerable and feel threatened, e.g. if control is an issue, be aware of that. Also, know how you feel about your reaction to the cutbacks and how the emotions of others impact you. The biggest challenge is to maintain an emotionally healthy balance and be able to be with others when they are angry, depressed and frustrated; to acknowledge all the emotions of these difficult times and let it go at that (knowing you can’t fix them or eliminate them) and to recognize what you can or cannot control and move forward as the workplace changes. Acknowledge how much of a drain it is to maintain balance and allow healthy outlets for the stress. Do not apologize for taking time off and engaging in fun activities. To summarize: the future of an organization depends upon
NEWS from JUDITH CUSHMAN & ASSOCIATES As a result of the success of Tech 2002, the National Conference I recently chaired, I’ve created a consulting division, in addition to the recruiting services. This division is designed, for example, to meet the needs of companies emerging from the recession that are evaluating how best to organize and then hire staff (if that is the right solution.). There is a complimentary two-hour interactive module for start-ups and small cap companies (under 200 million in revenue). This scoping module is for decision-makers who should first define communication resource options before spending any money on executive search firms. Various pieces of the recruiting process are also available on a consulting basis. I also continue to support a Life Sciences/Biotech initiative to create a communications task force. We are making progress on a mission statement that says our goal is to create a database of credible public perception research. This is a national effort and I hope to have more news in the next few weeks. I continue to focus on seeking assignments in this area and will be starting a search shortly for a top-notch science writer based in Washington State. Discussions are underway with a number of other companies. I am seeking sponsors for the COMDEX party list published in November and possibly other major shows as well. If your organization will be there and has a message to be delivered and seeks high visibility with the PR and Media communities, please let me know. |
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Judith Cushman & Associates 15600 NE 8th St., Suite B1, PMB 178, Bellevue, WA 98008 s (425) 392-8660 Fax (425) 746-8629jcushman@jc-a.com s www.jc-a.com The Judith Cushman & Associates web team would appreciate feedback concerning this site. Please e-mail your comments, questions and suggestions to heathers@jc-a.com. |
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