Why Putting People Issues on Back Burner Is a Bad Move

By Marcia Ruben • November 24th, 2008

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Creative Commons License photo credit: SDCDeaCerte

According to a recent Conference Board Report, described in the November 20 edition of the Wall Street Journal, executives are now putting people-issues on the back burner. Top executives’ highest concern is excellence in execution, and consistent execution of strategy by top management. While it makes sense that efficiency and flawless execution are front-burner issues, I believe that this is an over-correction that will come back and bite executives once the economy starts to straighten itself out.

The greatest challenges and barriers to excellence in execution are always the soft, people issues, and particularly resistance to change. According to the Conference Board report, speed, flexibility, and adaptability to change are the third highest concern. Ironically, unless an organization has a flexible, adaptable culture already in place, the lack of one will get in the way of flawless execution. And, as anyone who has attempted to change a corporate culture knows, it is not something that happens overnight.

Certainly, employees understand that we are living in perilous times, and those who still have jobs will no doubt do all they can to pitch in. However, once the pressure is off, management practices that do not fuel employee fulfillment will be remembered. I have worked within companies at the tail end of downturns. To a person, management who have contributed yet do not feel rewarded start planning their exit strategies as soon as they see signs of an improving economy. Leadership teams that do not pay attention to their succession plans and make efforts to retain key employees, may find that these top employees put them on the back burner when the economy improves.

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Marcia Ruben, Ph.D., CMC

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