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Blog: The Business of Management
 

September 3rd, 2008

From Bad to Worse: Finding Out About a Layoff Via E-Mail

I’ve written before that layoffs are a one-on-one activity, that there’s only one right way to fire someone—in person, face to face, supervisor to worker. There’s a reason for this, and it is simple: It should be handled that way because management should be forced to personally confront the consequences of its actions.

Sometimes, however, organizations do dumb things and opt NOT to handle layoffs in a personal manner. RadioShack did this a couple of years ago when it dismissed 400 people via e-mail, to the company’s ever-lasting shame.

An e-mail firing, I said at the time, is the ultimate management cop-out because it further dehumanizes a process that is pretty inhuman to begin with.

Well, here’s another example of a company letting employees know of a layoff via e-mail, but unlike RadioShack, this instance was due to a dumb mouse-click mistake.

Advertising Age, a sister publication of Workforce Management, reports that “struggling media agency Carat is planning a major restructuring of its U.S. operations, including an undetermined number of layoffs—news it accidentally released today via a memo the agency’s top New York-based HR executive e-mailed to the entire agency that appeared to be intended only for senior managers.”

Yes, the company’s chief people officer accidentally e-mailed Microsoft PowerPoint and Word documents about how the company was planning to handle layoffs “to all staffers before the mistake was realized, and it was pulled back by the IT department.” The documents, which were sent to Advertising Age and are now posted on adage.com, “detail talking points for managers as they talk to clients, vendors, the press and employees as Carat tries to navigate the fallout from the news” of the layoffs.

If you look at the documents, you’ll quickly see that the company was trying to take great care to manage the layoffs and give managers guidance on how to talk to employees and clients and manage the situation to the best of their ability. There’s some silly politically correct language in there—they want layoffs referred to as “right-sizing”—but for the most part, Carat’s management team seems to have been trying to do the right thing.

Unfortunately, those good intentions won’t matter in the end. All the soon-to-be former employees of Carat will remember is that they were told about a mass layoff—that might include them—by e-mail. Sure, it was inadvertent, but no one is going to remember that part. What will persist is the sting of being dismissed in a very impersonal way.

Another problem for Carat will be scraping off the ceiling the people it wasn’t firing—who Carat really wants to keep, in fact—but who also got the misdirected memo. One of the talking points prepared for managers in response to any questions about further reductions noted that “although no one can ever predict what the future will bring, we do not anticipate another action of this nature in the foreseeable future.” Somehow, I don’t think the left-behind employees will buy that.
 
Advertising Age asked me to comment for its story since Workforce Management writes about these issues all the time. As someone who has occasionally sent out an embarrassing e-mail to the wrong person (which almost everyone does at least once), I feel for Rose Zory, Carat’s chief people officer, who sent out the e-mail in question. She simply made a mistake, in the heat of the moment, and probably wants to crawl into a hole right now.

But as I told Advertising Age, “You would think that the chief people officer would be more careful given their position in the company—a reasonable assumption to make—but that’s not always the case. Owning up to the problem, apologizing and emphasizing it was a terrible mistake won’t solve this or make it better, but can go a long way toward getting beyond it quickly. Still, if I were the CEO, I might want to start looking for a new chief people officer. You pay those people to step up in these situations, not make it worse.”


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Comments

Great article.

I think it illustrates that each type of work dialog has one or more appropriate communications channels and for sensitive HR stuff email and text message or instant message are not it. Also certain dialogues need to be private and others public.

About a year ago I blogged some idea on a framework for this for networks but I think it applies to any organisation - http://www.bioteams.com/2008/08/06/making_virtual_communities.html

As far as I can see there are 3 basic types of DIALOGUES humans have with each other:

1. TCB (Taking Care of Business) – getting things done
2. Grooming – Nurturing relationships through trivia and small talk
3. Emoting – Sharing how we feel – good and bad

and there are 3 different ways they can do it (ENCOUNTERS)

a. 1:1 (one to one) – a two party conversation
b. 1:M (one to many) – one person is talking to a group
c. M:M (many to many) – a group where all members are talking with each other

and there are 3 different CHANNELS they can use

There are 3 main channels we can use for these dialogues:

x. Speech – over the phone or face to face
y. eMail/Web – any form of asynchronous communications
z. Messaging – any form of real-time communications via web or mobile phone

You can then analyse the conversations which are happening in an organisation to see whats missing and whats inappropriate

HOPE THIS HELPS

Best Regards

KEN THOMPSON
BLOG: http://www.bioteams.com

The worst part about this situation is not the accidental misdirect of the layoff email. It’s what that email revealed. I think it’s shameful and totally deceitful that Carat is placing “blame” on its workers for the reassignment of accounts.
“Mary Smith will be moving off your business. Now that we understand your business better, we are replacing her with someone whom we feel will be a better partner for you.”
“Mary Smith will not (sic) longer be working on your business. In order to serve you better and provide greater innovation we have made a staffing change to your business.”
Why should “Mary” take the fall for the company’s failure to perform?? Seems quite slanderous to me. Then again, this statement makes Carat seem just as incapable as poor Mary: “Now that we understand your business better…” Looks like someone didn’t do their homework or due diligence. What will the client think of the agency’s service and competence prior to this “revelation?” Not much. I’d ask for a refund and find a new agency. If I were Mary, I’d seek legal action.
This is a crisis communications train wreck on several levels, committed by a company that supposedly communicates for a living. Perhaps this is why Carat is not striking any gold. Is it any wonder agencies, especially PR firms, get such a bad rap for spin-doctoring everything (I’ve been in the industry 20 years)??? OMG just tell the story straight. Your clients, employees, and the media will have infinitely greater respect for you. And, they’re all smart enough to figure out the truth anyway. How transparent and patronizing.
Layoffs are an unfortunate fact of the current economy, any economy, really. The most successful companies have had to face them, too, in record numbers. Nothing so embarrassing that a company should feel the need to lie to its clients and make employees who already feel bad look bad, too.
The HR person who pressed “send” should not be fired. The author/s of the terrible client “talk points” should.


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