M&A / New Corporate Leadership

Keeping control over your own message to employees

Paul Tellier, past president and CEO of Canadian National Railway, started the cultural transformation of CN in the mid 1990s. Tellier widely credited employee communication as the foundation of the railroad's culture change led by Jana Schilder, then employee communications director. In February 2013, CN was selected by The National Post and Waterstone Human Capital as having the best corporate culture, now under the direction of president and CEO Claude Mongeau. — Paul Tellier, past president and CEO of Canadian National Railway, started the cultural transformation of CN in the mid 1990s. Tellier widely credited employee communication as the foundation of the railroad’s culture change led by Jana Schilder, then employee communications director. In February 2013, CN was selected by *The National Post* and Waterstone Human Capital as having the best corporate culture, now under the direction of president and CEO Claude Mongeau.

The worst thing for profitability during a major transition is if employees wonder about their future.

When a new CEO or top management team is announced, the first thing most employees ask themselves – and each other – is usually “Am I going to get fired?”

It’s the same thing they ask when news of a merger, acquisition or spin-off comes out.

The worst thing for productivity – and profitability – during a major transition is for employees to be wondering about their future. Without a strong communications plan, your best people may start looking for new jobs and under-performers will be even less effective.

During any significant change, the worst thing top executives can do is leave employees wondering “What’s next?”

At First Principles, we help CEOs and other senior executives tell all levels of an organization what’s next and how it will affect each employee. Employees can handle bad news. What they dislike is uncertainty.

Whether the news is good, bad or indifferent, the worst thing to do is to say nothing.

Because what starts as a rumor on the shop floor – however unfounded – can end up as tomorrow’s headline. Without a solid, accurate and honest internal communications plan in place before wild stories start flying, the company can easily lose control of its own message.

Even worse, employees can lose respect for management. That’s not good for the business, for the employees or the community where the organization lives and works.