We are all now well into the second half of 2010 and are still gripped in the vice of the longest and deepest downturn ITHOE. Some say we are now at the bottom, just bumping along and using all of our analytical skills to predict the inevitable but elusive upturn.
It’s been tough, very tough, and for those leaders who have had the courage and tenacity to right size their business in front of the continual slide, they will emerge from the nadir with the fabric of their business intact. But at what cost? What human cost?
Well, to answer these two questions we first need to look at our responsibilities to the three power groups in any public company.
Firstly, the stockholders. They expect us to run a viable company through the upturns and the downturns. That’s why they invest in us. I think we can put a tick in that box.
Secondly, the customers. They expect on time delivery and service of a quality product, whatever market conditions prevail. I’ll give that one a tick as well.
Thirdly, the employees, the people, the team. They expect security, fairness, trust and integrity from the company and its leadership. I will put a tick in this box but with some explanation.
The downturn has meant significant reductions in numbers of people across the whole business in order to qualify for the three ticks above and particularly to keep the business right sized with the market. Within Hanson Building Products we have not been slow in making these extremely tough decisions. I like to think that these decisions have been executed in the right way. These decisions are taken for strictly business reasons but it should never be forgotten that they involve people.
People with families, mortgages and all the financial commitments that go along with them, not to mention the pride and dignity that goes along with being gainfully employed. Every single time we reduce by even one person, we are creating hardship for someone and their family. But it has to be done to secure the employment of those that remain in the company in the long term and as such keep the fabric of the business intact. For the leader of any company, who is worthy of their position, this is probably the worst part of their job. As I said, it has to be done, but it is HOW it is done that is paramount. It has to be done with care, kindness, fairness and dignity.
Every leaver is a person, a person who has just been dealt a crushing blow and that should never be forgotten by the manager responsible for delivering the news. These folks that leave us are a walking advertisement for Hanson Building Products in the following months and years and the news on how they were treated through the process will be spread far and wide. In addition, the way that people are treated in these circumstances becomes well known within the remaining team and sends a very transparent message to them regarding what sort of leadership and what sort of company they are working for. I cannot stress enough, people are the cornerstone of our business. They are our most treasured resource and should be treated as such. In this company it’s simply not negotiable, it’s a given.
For anyone leaving the company under the downsizing umbrella, the reaction to the news never ceases to amaze me. Sometimes we see bitterness or anger but generally I think this represents a reaction to the shock of hearing the bad news. More often the reaction is one of unparalleled dignity, understanding and grace.
One such guy emailed me this week. I’ll leave you with the body of the note for you to make up your own mind regarding my point:
“I am 32 years old and have been in the concrete pipe and precast business for 14 years. I started from the bottom (cleaning mixers, shoveling packerhead pits, operating pipe machines, loading trucks, leading crews, pretty much done everything) to managing multiple plants. I was hired by Hanson in 2006 by Pat Kelly and Sue Tannenbaum. I was the Plant Manager of the Apple Valley, MN plant and met you in 2006. The plant was not in good shape. I worked extremely hard to turn the plant into something Hanson could be proud of…which I think I did a very good job. In two years we cleaned, painted, organized and improved every aspect of the plant. It was exceptional! I was promoted to Ohio Area Operations Manager by Mike Markey and Eric Wheeler in October of 2008. All of the Ohio plants were in need of serious change. Bringing enthusiasm, energy, and a new way of doing things we were able to improve on cleanliness, quality, CARING about what we do, and the Hanson image. We were on track to be the supplier in Ohio. I was part of a headcount reduction in March 2010 and needless to say I was very disappointed. I loved working for Hanson. I was 100% loyal and wanted nothing less than Hanson to be the best. I will always think of Hanson as mine. I will always think of Hanson as home. I am writing this email to let you know that I wish you and Hanson the VERY best in the future and I hope that Hanson gets better everyday! If you ever need a young manager who is full of energy and passion for the pipe and precast business, and who is a complete “Hanson” man I will be there!!! Again, I wish you and Hanson the very, very best!!!
Keep up the blog, I read it all the time!!!”
What a great guy!! I wish him every success in the future and thank him sincerely for reminding me of just what a precious resource our people are. Treat them well, they deserve it!!