Morale - Keeping the morale high ground

There's a strategy game in which lots of different managers are in a hot air balloon that is losing height. The objective of the game is to decide which of the managers should be ejected to save everyone else based on whose skills are the most important for survival. Welcome to 2009 and a version of that game that is taking place right now as business leaders manage organisations in the recession.

Managing in a recession is daunting, yet managing organisations is a tough job no matter what the business climate. However, are leaders making it even tougher for themselves by ignoring the critical elements for their own, and their team's, success: morale and motivation? High morale generates high energy, which in turn underpins success. Low morale fosters negativity and fear, which underpins inefficiency at best and failure at worst. Creating and fostering strong morale is good common sense and yet most employers depend upon financial incentives and job security to address such motivation.

Concern

Business owners, managers and staff, whatever role they perform, are prone to worry and low morale. The recession brings greater probability of these twin risks and it is a mistake to assume that you do not have to worry about people issues because everyone will have their heads down, wanting to stay put. They may be focused on job security but your talented people will be watching carefully how you respond in these difficult times and whether or not your values and qualities stand up to the test. They may also look at your competitors to determine if they are giving out stronger messages of leadership and long-term confidence.

Tough economic conditions provide an opportunity to wipe the slate clean. The psychological contract between managers and staff needs to be a very positive one during such conditions and there is a great opportunity to create a strong identity and purpose for your organisation to help you through the recession. If, with a positive psychological contract, you can marry the needs of your business with those of the staff then you are creating a win-win situation that provides high energy and a solid foundation for the future.

Human beings are complex and no business leader can be responsible for solving the individual needs of their staff members. However, managers can provide practical and personal development opportunities and support that enables people to think and make adjustments they feel comfortable with; perhaps developing emotional strength to become more resilient, achieving extra energy from understanding basic nutritional requirements and by walking more and driving less, or discovering the strength of meditation to help make difficult decisions. Small changes to self-awareness and personal routines can have a dramatic impact on the individual and the organisation for which they work.

Consider

There are many examples for leaders to consider. A leading insurer saw staff advocacy for a business-critical software system increase from 11% to 84% by having the insight to help staff understand their lack of motivation and how this could be addressed. Another organisation with a focus on self-awareness and team spirit saw absenteeism fall dramatically while improving productivity and removing the need for overtime.

Enlightened business leaders understand the link between low morale and poor customer service, between high energy and innovation, between high motivation and resilience. Your talented people will recognise that quality in you and preventing poor morale is a far easier task than trying to cure it.

- Mark Davies will speak on Peak Performance in Tough Times at the Biba conference at Manchester Central on Friday 16 May, 10.30-11.10.