The global economic slowdown of 2022 has been a complicated and challenging time for executives who have had to pivot from a growth-at-all-costs strategy to managing the investor expectations, while keeping a disengaged workforce happy and managing business operations amid a deteriorating economic outlook.
As business leaders, getting the C-suite all on the same page when it comes to understanding what matters the most and communicating that to employees is incredibly important when crises emerge.
Digital Journal spoke with Dean Quiambao, CPA, Partner and Chief Relationship Builder for Armanino, a top 20 consulting and accounting firm. He works closely with C-suites of high-growth firms and established public companies counseling them on ways to improve their communications and better align the C-suite to maximize communication and business operations among other initiatives.
Digital Journal: Why is it so important that the C-suite aligns itself in the face of a recession?
Dean Quiambao: As consultants and accounting professionals, we often work with companies that are struggling to right-size themselves in the face of, or during, a recession. If you ask the question: “What are you focused on the most?” and you get six different answers from the six different C-suite executives, the problems around communication bubble up quickly. Oftentimes, the C-suite isn’t aligned towards a singular goal or addressing key metrics as a unit. During an economic boom, it is easier for the CMO, CTO, CIO, CFO, and CEO to work in a more siloed manner because the results are typically easily achieved.
Working cohesively can only make a company stronger during challenging times because minor issues in each division can have ripple effects across the company if they go unaddressed. If an executive keeps their head down, keeps to their department, and tends to the needs of that one department, that isn’t teamwork. During times of economic uncertainty, such as the one we find ourselves in today, the C-suite and company leaders must meet regularly to identify and work towards specific metrics that are vital to the company’s continued success. Setting a common goal and seeing that goal through as a team is imperative to maintaining cohesion in both the C-suite and the company more broadly.
DJ: What are some common mistakes firms or C-suites make during times of volatility and uncertainty?
Quiambao: During times of volatility or uncertainty, it can be daunting for leadership to be clear and honest with the company. To be blunt, C-suite executives can be scared to tell their employees the truth – whether it be related to unfavorable metrics or challenging issues on the horizon.
This is where executives make mistakes. Hiding the reality from the company can create larger problems down the road. Employees can feel betrayed when they’re told that everything is alright when it isn’t. There is always a sensitive line to consider as a C-suite member in terms of what is shared with the company, but it’s important to provide transparency on the reality of a given situation with employees rather than being overly or unduly positive. This is especially true during tough times–your team wants and deserves the truth. If communicated correctly, it can help them rally behind the company.
DJ: What are some of the best steps the C-suite can take to ensure the entire team works in unison?
Quiambao: In times of volatility, the C-suite must recognize that everyone is on the same team. Department heads should not be biased in favor of their respective department, but should instead encourage inter-office collaboration. Too often people default to staying in their lane rather than collaborating with other leaders, but they need to venture beyond their comfort zone to ensure a collaborative environment. In times of volatility, full company “town halls” or meetings can be useful so that everyone is aware of the key initiatives and how they integrate across the company. Leaders and C-suites should ask questions about the importance of information needing to be shared with other department leads, such as the impact of a CMO’s decision on the CFO’s duties.
Executives and company leaders must think critically about how their department can be of service to and work with other departments. It’s all about working together, across the company to create solutions, to foster greater unity.
DJ: What types of effective communication should companies implement during these times?
Quiambao: The best organization and innovation come from the ground up, which is why it’s so crucial that executives communicate how important their employees are to the operations of the firm as a whole. The most vital question that firms need to ask is: “Do our everyday employees know how their job performance impacts important metrics?” If C-suite executives are pounding the table and complaining that the metrics are slipping, it may be because day-to-day employees aren’t aware of how their jobs affect this data. By communicating appreciation for employees and leading by example – showing up, spending meaningful time with staff, working effectively – the C-suite can catalyze a more cohesive organization.
DJ: Oftentimes, the gap between employees and the C-suite can expand during times of rapid expansion or downturns. What should the C-suite do to narrow that gap and become better connected?
Quiambao: On a very human level, the C-suite needs to come down (both literally and figuratively!) and be with the staff in organic and authentic ways. Executives can’t just sit in their ivory towers and expect metrics to improve, they need to be surrounded by the people they lead and hear from them about the challenges they are facing and the wins they are achieving. The C-suite should show up for and encourage its workforce by interacting with them regularly and organically. Don’t eat lunch alone at your desk — show up and connect with people without it feeling forced. If leaders aren’t present, then what motivation do their employees have to perform at the top of their game? This is often when the best ideas are developed since problems are forced to be solved in high-stakes environments. There’s no way around it – the C-suite needs to listen to and collaborate with their workforce to be better connected with them.
