20090805

Leadership Lessons for hard times - 3



Friends,

Lesson 3 : Be transparent with employees . . .

The only way to address uncertainty is to communicate and communicate. And when you think you’ve just about got to everybody, then communicate some more.—Terry Lundgren, chairman, president, and CEO of Macy’s

One legacy of the current downturn will be a reinforced belief in the value of frequent, transparent communication with employees, and not just the CEO’s direct reports. The CEOs we interviewed could not overemphasize the power of openness at all levels.

“At Cardinal, we work hard on internal communications,” says Clark. “We do a lot of town hall meetings, for example. We used to just do them around earnings time, but now we do them to discuss any major initiative that’s under way.” Clark also notes that investor relations (IR) and internal communications work hand in hand, so that any information that goes to the investor community is reworked for employees. “We do a very good job of making sure information doesn’t get in front of one group without getting in front of the other.”

Source: McKinsey, August 2009 • Dennis Carey, Michael Patsalos-Fox, and Michael Useem

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