Professionally, I work in the tech sector. Right now, when tech is making money hand over fist, many companies are laying people off. Not one here and one there, but significant percentages of people.
In my experience, companies do need to make rapid-enough decisions about when to lay some people off to save the company as a whole. But as an outsider, this layoff business looks suspicious. Especially since many of the senior managers in these organizations stand to receive record bonuses this year.
Who benefits and who loses from these layoff decisions?
It’s an important question everywhere: at work, in politics, and—especially—in life.
Layoffs aren’t the only management decision I see that makes me suspicious. Here are other decisions that divide us into beneficiaries and losers:
- When managers believe they can “objectively” assess anyone’s performance. (See Myth #5: We Can and Must Have an Objective Ranking System.)
- Those same managers micromanage and remove too much autonomy from the people doing the work. (See Leadership Tip #9: See & Stop Micromanagement—Learn to Trust Instead.)
- Or, when managers want people to work overtime for any number of reasons. (See Management Myth 15: I Need People to Work Overtime.)
In my experience, managers who act this way do not consider the questions about who benefits or loses as a result of their management actions and decisions. Instead of optimizing up for the organization, these managers seem to be transactional, focused on their money and how they win. It’s all about how they benefit.
When we ask who benefits and who loses, we decide the kind of power we believe in. (See How Do We Balance the Power to Make Decisions with Who Feels the Outcomes? for the kinds of power.)
How Do You Choose to Act or Decide?
When I’m faced with these kinds of questions, I often use my personal integrity to decide. Even when that choice meant I might not have a job later that day. I had that freedom because both Mark and I worked. That gave us financial resilience to manage any problems my big mouth created. You might not have the same freedom.
Last month, I decided that I would no longer post on Twitter/X. Musk’s decision to promote antisemitic propaganda and tropes triggered my decision and my reactions.
I lose the value of all my followers. Those followers allowed me to market my products and services, something that matters to consultants. But my personal integrity demands that I stop using that platform. I decided I did not want Musk to gain from my inaction.
I am under no illusion that Musk and Twitter/X will have to lay people off because of my actions or decisions. However, now that advertisers, people with real money, are leaving the platform, my small actions might matter more.
And maybe, if enough people also choose my decision and actions, maybe we can all further erode his finances.
Each of us can choose our actions and decisions. However, the more we consider who benefits and who loses, the more we can create nuance in our actions and decisions.
That’s the question this week: Who benefits and who loses from other people’s actions or decisions?
Johanna, what you wrote absolutely has the ring of truth, pealing loud and clear.
I made the decision to strike out on my own once I understood that my core values and beliefs were completely at odds with the trends I was seeing and experiencing. I remember telling the president of the last company where I was employed as an executive that if there was ever another layoff, he might as well put my name at the top of the list, because if the company wasn’t making money it wasn’t the “worker bees” to blame, but the top management. Later, as a contractor, I had the nearly unbelievable experience of being in a Cleveland hotel room where my husband was recovering from a heart operation (we had to stay there until he was well enough to fly home), sitting at the desk while listening to the CFO of the company tell me that my contract was canceled, effective immediately. He said, “As you know, sales have been lagging, and we are having to make some dramatic cutbacks. Sorry you’re having trouble, but there’s no way around this.”
Three months later, that same man called me and begged me to come back, because they hadn’t been able to figure out how I’d been able to do the work I’d been doing for them, and customers were starting to complain. I knew they’d keep me only until they could figure out how to accomplish what I did — and I’d be on their chopping block again.
I didn’t go back. I wished him well and rang off, my conscience clear.
It was such a simple decision. I wasn’t willing to trade away my integrity, my courage, my commitment to quality, for personal gain.
I don’t do business with companies that place profit over people. Another simple decision.
I left X the day Musk took over Twitter, sauntering in the front door carrying a kitchen sink. His messaging couldn’t have been clearer. Everything and everyone was going to be thrown away, including that sink. I remember puzzling over what could have possibly motivated Jack Dorsey to turn his brainchild over to a psychopath. In my opinion, Musk is just a horrible person, lacking any of the redeeming qualities one might hope for in humanity.
I actually hope he crashes and burns — just like his space ships.
Marsha, thanks. Even if we have purchase orders, consultants/contractors do not have the “rights” of employees. That’s one of the many reasons I either ask for 50% payment or 100% payment in advance. That doesn’t work so well if you have what I suspect was a “do this work for us every week and we’ll pay you every week” approach. That was years ago, and I bet you would charge differently now. (I would call this a trusted advisor or consulting contract now, and ask for either a yearly or quarterly payment in advance. But you and I have learned from our previous engagements!
As for integrity—yes. That makes our decisions much easier. Also, I have a motto: “Don’t do business with jerks.” That makes decisions easier, too.
I still have a profile on Twitter, but I stopped using Twitter when Musk reposted the antisemitism nonsense. I don’t have to support his ability to make money with my content. Not if he acts like a jerk. (He’s worse, but I’ll stop there.)