Recession Lessons July 13, 2010ArchivesOff

Recession Lessons

It is possible to recession-proof your career.

By Lora Shinn

Your career survival is a justifiable concern in today’s shaky job market. Commercial bankruptcies increased by 49 percent over the last year. News of layoffs crowds the airwaves, and with company valuations at more appealing levels this year, larger firms have gone bargain-hunting.

When a deal goes down, even higher level professionals can be left wondering if their consolidated jobs are safe – and for how long.

Beth Johnston knows a thing or two about surviving economic ups and downs. As the senior vice president of HR at Delta Air Lines Inc., Johnston helped shape employment policy and employee relations in response to the airline’s 2005 bankruptcy. Now she’s assisting in the high-profile proposed merger between Delta and Northwest Airlines.

She describes this stage – after the announcement but before regulatory approval – as the “engagement” period. And just like the prenuptial variety, the corporate engagement is a stage that gives many the jitters. Dysfunctional behavior, such as prematurely jumping ship, often occurs at all levels of employment, says Kate Sweetman, a principal management consultant with the RBL Group.

PINK checked with career coaches and merger veterans like Sweetman and Johnston for advice on how professional women can keep their jobs – even them – while simultaneously preparing for new ones, if needed. The result is a quick guide to recession proofing your career so you are able to steer it through the rough valleys that may lie ahead – with confidence instead of consternation.

Keeping your chin up. Now’s not the time to dwell on negative numbers, says Sandy Hofmann, COO of Closets and More. She was CIO and chief people officer for the software company Mapics Inc. before it was acquired by Infor Global Solutions in 2005. “When it’s a time of tumultuous change, focus on solutions,” she says.

During her own transition at Mapics, the executive team agreed to leave as part of the agreement with In for. But before going, the team worked together to document processes and showcase their talented employees. “The new management could expect a smooth transition,” Hofmann says. The alternative – leaving with a scorched-earth policy – only burns the embittered executive in the end, experts say, particularly inside tightly knit industry networks where reputation is paramount. In Hofmann’s case, she didn’t even have to go on interviews after the acquisition. Her network sought herout as a proven team player and offered a new opportunity. “The reputation I built was mine,” Hofmann says – a reputation defined by her performance and not her employer’s status.

Co-workers and employees want leadership during challenging times, and a positive outlook on the situation eases stress and enables success – and sets you apart against the backdrop of sour faces and low morale. “Positive but realistic” is the approach Sweetman advises. “If it’s bad, say it’s bad, but look for what you can do,” she says. Take responsibility for poor outcomes, then move quickly to rectify them; otherwise, it’s easy to become the company scapegoat – and the first to receive a pink slip.

Sweetman says hard times cause many executives to put their heads down and work twice as hard, retreating into what Hofmann calls the “professional cloister.” But hiding out isn’t good for the career. Instead, those execs may be seen as distant, unconcerned or uninvolved in solutions.

Spotlighting personal brand. Career coach Helene Lollis, president of Pathbuilders Inc., suggests creating an internal marketing plan, demonstrating your business sense in planning meetings and proactive projects. “Think of yourself as a product in the marketplace that is the organization: What are your unique features and benefits?” she asks. Then, align those strengths – maximizing resources, thought leadership or an ability to motivate – with the company’s strategic needs.

Lollis speaks of a high-performing Georgia-Pacific sales manager who successfully survived the acquisition by Koch Industries – eventually taking on a newly created role and training Georgia-Pacific staff on Koch’s business approach. “The manager was branded as a credible, effective communicator who had great relationships throughout the organization,” Lollis says.

Sweetman explains that some industries will do extremely well during a recession – and so will some individuals. She says survival comes from diversifying your prospects, which you can achieve by marketing your brand through networking.

“You’ve got to maintain a very strong network – broad and diverse – founded on how you are providing value to other people,” Lollis says. And when you do need to reach out in uncertain times, Lollis suggests providing contacts with complete information about your interests, capabilities and ability to provide value. You then build a network of “informed promoters” and establish a toehold in the larger community.

Joining the team. 
When Lollis worked at American Oil Co. during its merger with British Petroleum, many Amoco managers reacted with doom and gloom instead of seeing the merger as a time of opportunity. She notes that integration teams, the executives who steer the course of a merger, have an enviable position of assimilating business processes and creating a new and better whole. “If you’re jumping on board to help and guide others, you’re in a position of strength,” Lollis says.

“It’s a participatory sport,” Johnston adds, “not a spectator sport. This is not the time to stand on the sidelines.”

At the same time, stay true to your business ethics, advises Nancy Virkler, who left her position as vice president of operations at Amsterdam Savings Bank after a tumultuous merger with a rival savings and loan I  Amsterdam, N.Y. “Know what happens in a good merger and what happens in a bad merger,” Virkler says, “and then ask yourself what kind you’re

How can you tell? Virkler suggests looking for established retention plans for top management, as well as clear communication on decisions, integration and your position within the organization. “As a VP,” Virkler says, “I still didn’t know if my services would be used six months after the announcement.”

Prepping your parachute
. While keeping an updated résumé on hand is always a good idea, it’s a key requirement during a down economy. “You’ve got to be ready to hit the street,” Hofmann says. “If the bus is slowing down, they might let me off or they may throw me under the wheels. I need to be prepared for it either way.”

She says those in an uncertain situation should have a personal e-mail account with notable addresses of network clients and co-workers; industry journals and memberships arriving in the home mailbox; and an ability to pack up and leave on a moment’s notice.

“That way, women can say, ‘I’m leaving intact, with my skills, with my résumé, with great relationships inside and outside,'” Hofmann says. “It doesn’t matter whether you’re let off or you have to catch another bus. You’re not leaving your life behind.”

5 Merger Mistakes and Remedies

If a company suddenly comes bargain-hunting for your firm during a vulnerable time, your career could be on the line too.

Experts advise that you avoid these common missteps:

Don’t jump ship on the day of announcement. Do take time to make an educated decision, and be part of the transition leadership.

Don’t assume that every detail has already been planned and every job meted out. Do try to secure your place — even a step up — in the new regime.

Don’t badmouth the acquiring company. Do keep an open mind. It could be your employer for years to come.

Don’t withdraw from integration information or evade discussions. Do remain an engaged team player so you’ll be more likely to preserve your job.

Don’t avoid telling your employees bad news because you’re afraid of the reaction. Do use upfront honesty to preserve morale and productivity during the transition.

This article originally appeared in the August.September 2008 issue of PINK Magazine.

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