When the economy is in a downturn many organizations begin to target programs to cut from the budget. Those that do not boast an easily calculated ROI are generally the first to be considered, and leadership development programs may be among the first to be eliminated. However, a down economy may be an opportune time to review and revitalize leadership development initiatives. These programs can be revamped to address issues brought on during times of financial stress and help to ensure that future financial projections are positive.

Leadership development programs should be updated to address:

• Leading and Managing Change: Change management becomes increasingly important during times of economic uncertainty when fundamental changes occur that affect the employee base. As humans, employees often resist change, which can prevent important initiatives from producing positive outcomes. In order for such initiatives to produce the desired results, employees must be engaged and accept the change. This requires managers to be equipped to lead and manage change effectively.

• Effective Communication: Communication becomes increasingly important in an uncertain economy. Effective communication can prevent employees from making false assumptions that may lead to a disengaged employee workforce or even unplanned attrition. It is important to clearly convey whenever feasible the organization’s current financial standing, initiatives being undertaken to address the changing business landscape, and the anticipated possible effects on the workforce. Any information on the organization’s future financial projections and/or strategic direction will be helpful in promoting open communication, and employee-employer partnership and trust.

• Performance Management: Equally critical is ensuring that employees clearly understand what is expected of them and whether they are meeting performance expectations. When changes occur, job responsibilities may also be altered. Assuming that employees know what is expected of them can lead to individual or team failures. Employees should be coached in a feedback-rich environment in order to achieve optimum performance.

• Corporate Responsibility: Leadership development programs should focus on manager responsibilities and behaviors. Ensuring that managers understand how even small expenditures can drain organizational budgets is critical. Managers need to be trained to take ownership of their department and/or team and to identify and address areas in which actual costs can be reduced in order to operate successfully within reduced budgets and increase profit margins.

Even when an organization realizes the value of leadership development, the associated costs may still be a concern. One approach is to bring development/training in-house to train multiple managers and therefore reduce the costs associated with sending individual managers to training. This type of internal development provides the opportunity for managers to discuss and address issues being faced by the entire organization. Conversely, an advantage of external training is giving individual managers the opportunity to learn from others with different experiences in different industries. New and fresh ideas can then be brought back to the organization and shared with other members of the leadership team.

When budget cuts are eminent, forward-thinking organizations connect leadership development directly to organizational goals and initiatives. Remember that the level of a leader’s effectiveness directly impacts the future of the organization.

Author: Robert Krajewski, Associate HR Business Partner, Helios HR

In this Issue

Letter from the President – Welcome 2009!

Communicating Low or Non-Existent Salary Increases

Leadership Development in a Down Economy

Career Transition Services

Also This Month...

Helios HR New Location!
Due to continual growth, we have moved to larger office space at 12007 Sunrise Valley Drive, Suite 420, Reston, VA 20191. Come visit us!

2009 Helios HR Apollo Nominations Now Open through Feb. 25!

Nominate your company or another who promotes employee development. Find out more and apply online!

Management Development Training
Register for the 2009 Winter/Spring session kicking off January 28th! Continuing Ed Units (CEUs) available.

Association for Corporate Growth (ACG)
Attend the 2009 Mid-Atlantic Strategic Growth Conference & Capital Forum March 19 & 20, 2009 at the Bethesda North Marriott Hotel - Keynote Speaker Mark Feldman, Authority on Mergers, Acquisitions, and Corporate Change
Annual Conference Registration Link

Coat Drive a Huge Success!
1,271 coats have been collected for our less fortunate neighbors. Heartfelt thanks to all who contributed!

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