Great Leadership Requires Great Communication – Duh!
Wednesday, December 10th, 2008
The problem with my title is everyone knows this, but then why doesn’t everyone do it? Because we get caught up in our egos, making office politics king, instead of creating open lines of communication so everyone is in the loop.
The CEO (Tony Hsieh) of Zappos (a brilliant online shoe company), published an email to his employees on his blog that explained why they laid off 8% of their employees. It was a brilliant way to communicate to the employees of Zappos.
The first email let everyone know of the hardship of making the proactive move to layoff 8% of their people.
“Today has been a tough, emotional day for everyone at Zappos. We made the hard choice of laying off about 8% of our employees. The layoffs will affect almost every single department at Zappos. In addition, we are also looking at closing some of our brick and mortar outlet stores in Nevada and Kentucky.”
“This is one of the hardest decisions we’ve had to make over the past 9.5 years, but we believe that it is the right decision for the long term health of the company. The rest of this email will explain why…”
Read the rest of the first email to his Zappos employees here.
The next email that came explained the ramifications of the move and what changes the employees should expect. I can’t say enough about being open and honest about a company’s choices with everyone. When we let employees and customers in on the thought process behind a decision we create understanding and trust. If a company explains the rationale of their choices, the employees will accept and actually make a difficult process easier.
“Last week was a tough week for everyone, as we went through the process of laying off 8% of the Zappos family. At the same time, it was also heartwarming hearing all the stories of Zappos employees and ex-employees getting together for drinks Thursday night after the layoffs as well as over the weekend.”
Check out the follow up email to their employees here.
This is a great example of how you can open the lines of communication at your company. Don’t forget to take notes because we can all learn from Zappos.
Sidenote: We definitely don’t use the word “duh” enough.
If you liked this article I know you’ll like:
- The Magic of Allowing Employees to Do What They Love
- Who Matters More at Your Company – The CEO or HR Manager?
- 5 Fun and Easy Tips to Let the “Real You” Shine Through at Work, Southwest Airlines Style
Good article with good example, Karl.
One of requirements to be a successful company is a capability of a leader to communicate company’s vision, mission and policies to all level of employees.
Arswino’s last blog post..No More With Me
I’ve been at companies twice, when layoffs occurred. The first time, probably about 15 years ago, everyone knew it was coming, yet there was no “word” from anyone high within the company that it would happen. I remember the day well – as people were called into a conference room – and notified that was it. Very sad, the way it was done. I ended up leaving that company shortly thereafter. The other time occurred with the company I am currently with – several years ago. It was much closer to “right”. The upper mgmt of the company is very committed to sharing information – the good and the bad. I believe there was an email from the president before it all happened. And then, the people that were let go were also given access to outplacement services – to help them get back on their feet again. I think one big difference is the ownership of the company for us – where I’m at now is 100% owned by all the employees. So, we all have a stake in the success of the company. Versus a publicly or privately owned company – controlled more by forces outside of our control.
Anyway, Karl – this is a good reminder on the importance of communication. I believe it is the biggest issue we face – not only at work, but also in our personal lives as well. The better we can do at honestly communicating, the more understanding we’ll have from others.
During times of difficulty, like our economy is seeing now – this is such an important point to remember.
Lance’s last blog post..Sunday Thought For The Day
Hi Arswino, if the CEO leader doesn’t set the tone of the company who will. Leaders come at all levels, but most companies look up when needing guidance and the only person you can’t look up is the CEO. S/he must act quickly, compassionately, and with a ton of wisdom.
Hi Lance, great example. The process of downsizing is so much easier when a company clearly states it’s goals and why that have done so. It makes the tough pill of losing a job or a friend to a layoff a little easier to swallow.
Your CEO sounds like a very effective communicator. That might be why zappos.com is so successful. Great insider story!
Thank You,
Giovanna Gacia