The contribution of professional communication in the management of restructurings.

2020-07-16 · 17 min read

The beneficial effect of professional communication in any organizational restructuring, and especially when there are mass redundancies involved, is now widely recognized, backed up by facts and figures. The effect operates at a number of levels.

1. Being in control of the project right from the beginning and keeping control throughout the process

There is a saying: “If you want peace, prepare for war.” Preparing for a corporate restructuring must avoid all amateurishness and ensure the inclusion of all the target groups on which the firm depends. Specific preparation must be made to back up the internal announcement, handle the press and other mass media, and manage external communication.

Crisis scenarios will have to be studied in advance and borne in mind when formulating a crisis plan. There must be provision to train people in handling the media and uncertainty. All of this will have to be included in specific arrangements for organization and planning. A professional approach to communication will give the firm a significantly greater chance of succeeding in its plan.

 

2. Ensuring the senior managers’ credibility and protecting the firm’s reputation when dealing with the media in difficult circumstances, while also retaining trust among customers, banks, strategic suppliers, governmental authorities, etc.

At times of corporate restructuring, the press and other media primarily focus on the attitude the firm adopts towards the staff, rather than looking at the basic problem. A journalist knows that a firm’s announcement of an “intention” actually means that it is determined, and that nothing will prevent it from carrying out the plan! On the other hand, all eyes will be on the firm’s attitude towards industrial-relations problems. Specific training in handling the media will make it possible to frame messages that correspond with the media’s values while meeting the firm’s aims. The same is true in relation to customers, banks, important suppliers and the authorities. A proactive and personalized approach will make all the difference in terms of trust in the firm and the firm’s reputation.

 
3. In case of a collective dismissal, avoiding trade unions or staff members resorting to legal proceedings for failure to comply with Belgium’s Loi Renault, with the risk of financial and other penalties being imposed

Every word is important when there is an intention to close or restructure a firm, as it may be used against the organization. A professional approach to communication will ensure that the messages communicated both internally and externally comply scrupulously with the law. This must apply not only to documents but also in orally communicated messages from managers. Those in charge of communication must, for this purpose, have a good knowledge of what is implied by the Loi Renault and also have wide experience enabling them to brief senior and other managers. Bringing a professional approach to bear in communication should avoid legal appeals being made, based on shortcomings or communication errors at any stage.

 

4. Avoiding the dissemination of incorrect information that can produce conflicts

A basic rule for success in communication is being proactive. Being the first to disseminate a message is definitely an advantage over the trade unions. It is not enough, however. The announcement of a corporate restructuring must be framed according to certain communication principles if it is to be persuasive throughout the firm. Expressing the “business case” for a restructuring in terms that are clear and comprehensible to everyone is a job in itself.

It has been shown that clear and proactive communication avoids giving trade unions an opportunity to sow doubt, and makes it possible to avoid “emotional” types of industrial action.

 

 5. Ensuring the plan’s credibility and that its effect is beneficial for the future, with no loss of the employees who hold the key to the firm’s successful relaunch

In any restructuring, two types of message have to be communicated: messages for those who may leave the firm and, even more importantly, messages for those who will remain and on whom the firm will depend for making the relaunch or plans for change a success.

This is a delicate exercise. Achieving the right balance depends on numerous factors. Control over these is important, so as to avoid losing key employees and prepare for a successful relaunch.

 

6. Avoiding or limiting industrial-relations conflicts, and managing crises, while keeping the firm as fully operational as possible

Avoiding and managing industrial-relations crises are a job in its own right within the communication field. Keeping the firm operational in particularly volatile or emotional circumstances is not something where you can ad lib. In either case, expertise in managing human behavior and change is essential, as is solid experience of managing industrial-relations crises. This experience has to be communicated to the managers (through general training and specific briefing) to assist in controlling difficult situations that can arise in everyday dealings with the staff.

 

 7. Managing the situation when negotiations have reached a stalemate

Often, a stalemate can be overcome by a thoroughly convincing communication initiative to the staff, sometimes backed up by the media. Examples have occurred where staff representatives have refused to participate in the works-council meeting where an announcement was to be made. Other cases have been where there was a ballot to accept an industrial-relations plan, etc. There is no shortage of instruments, but what really matters is to develop a winning strategy, based on extensive experience of the field.

 

 8. Training and supporting the supervisory staff in their communication activities aimed at changing opinions, accepting that the information and consultation phase is over, and ensuring the business continues

Middle management is a fundamental link in communication with the grass roots. People now stress that 80% of the messages communicated by a firm have to go through the supervisory staff, with only 20% being amenable to management from the center. This is especially true for middle managers, who often find themselves very much alone when dealing with a restructuring plan and staff reactions and questions. It has been noted that appropriate training in change-related communication and frequent back-up in the form of arguments or questions & answers are really helpful for these managers. The positive influence on grass roots’ opinions and on continuing business is widely recognized.

 

 9. Managing the post-restructuring relaunch in order to achieve the plan’s aims

During a restructuring, a lot of energy is expended and resources deployed in the communication of the project and the management of the different steps of the process. This often creates a specific dynamic in terms of communication channels that should be kept open and alive after the restructuring. This contributes a lot to remobilizing the employees around the company project in order to provide the impetus needed to remotivate the staff and achieve the firm’s plan.

Ludovic Goethals, Partner

 

Do you want to discuss confidentially and without commitment certain points related to a restructuring? Whether in Belgium or in Europe, our experts are at your disposal. Click on the name to schedule an online  meeting.

Ludo Goethals

Katrien Decroos

Georges Vandenhove

 

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