(Notes written while on the airplane returning from London. Grant W, consultant.)
"How can we make these changes to cut costs and improve service?" is a frequent question these days. As managers try to wrestle with this goal, discussions often dance around a very important restriction. The restriction which more often than not is not even openly addressed is: "... without hurting employee morale."
I have observed numerous discussions where efficiency-producing suggestions gained little or no support. Managers resisted changes even though costs could be cut and quality and service improved. But, amazingly, the real reasons for resistance -"Some people may not like it" - were never, confronted.
Discussions offered passing hints of feared morale drops and poor ratings on job satisfaction and 360 surveys. It is as though high morale is a given, an inherent right and that suggested changes must honor this right thus, there is little need for discussing alternatives that threaten the right of all people to experience high morale.
Employee morale is very important. In fact, prolonged periods of low morale encourage motivated and talented people to leave. And a low morale group has higher absenteeism and more accidents. Also, they are just no fun to be around.
I recommend this approach "Employee morale is not an entitlement. Morale is earned." And you earn the right to high morale by making the organization succeed. (It is hard to have high morale if you are on the last place team in a ten-team league, no matter how good the players, pay or manager.)
A manager commented to me: "I have a real morale problem in my department. We just lost a huge order because our costs are too high"
My intuitive response was: "What do you expect? You, want people to be happy about this. Why focus on morale? Cost is the problem. Find ways to eliminate costs, and then worry about morale."
The highest obligation of management is, to produce services (products) that customers want at a cost they are willing to pay.
When we do this we can celebrate success and provide recognition. And magic, high morale appears.