Cutting Meetings - Cutting Costs or Alienating Employees?

Posted on February 7, 2009
Filed Under Managing Business Relationships |

I received this article in an email today and thought it raised an interesting point. Although all businesses are having to become hyper cost sensitive and cut costs wherever possible in this abysmal economy, cost cutting decisions can’t be made without consideration of the implications, both long and short term.

For example, cutting meetings and training sessions may seem like a no-brainer on the surface, but the Harvard Business Journal argues that cutting out interaction with employees, vendors and other business partners can send the message that they aren’t important and can cause relationship damaging alienation.

The article reads:

In a post at Harvard Business Online, John Baldoni worries about the impact budgetary cutbacks will have on corporate meetings this winter. “I hear from colleagues in the communication business [that] meetings are being scaled back or canceled to a large degree,” he reports.

“Scaling back makes sense; canceling meetings does not.” Here’s why:

  • Meetings give your leadership team the chance to outline the company’s plan for the coming year—critical information for external partners like dealers, vendors and franchisees.
  • They can also give your sales team an immediate sense of what to do in the short term.

“Both constituencies need to take the measure of their leaders and to discover for themselves if those at the top have the right stuff to lead,” says John Baldoni.

He recommends presentations that offer a clear vision for addressing current economic conditions; create the sense that you’re not only up to the challenge, but prepared to face it head on. Also, cultivate an interactive atmosphere that encourages participants to share their stories and offer feedback.

The point: “Cancelling such meetings, except when there are no other alternatives, sends the message that employees and even vendors and customers are expendable,” says Baldoni. “Instead, keep corporate confabs on the schedule and use them as a tool for energizing your constituents and renewing their trust.”

The same can be said for investing in your employees’ personal and professional development. I have heard from numerous colleagues that travel expenditures have been one of the first things to go. But I would advise employers not to simply ban all travel point blank.

As we have discussed, the best ways to survive this type of economy are:

  1. run lean and mean
  2. invest in your people!

If your employee wants to attend an event that will give them valuable education and help them perform their job with more confidence - which will ultimately benefit the business as a whole - consider their request.

And, back to the golden rule, the key to business longevity is relationship. Maintain face to face interactions with your clients, and make the effort to meet in person, albeit less frequently, despite the short term costs. The long term benefits are much more valuable!

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