Leadership is easy 18/24
Leader's responsibility: "The head of the fish rots, but the tail is clipped"
As the old saying goes, “the fish rots at the head,” but when a company falls on hard times, the tail is often cut first—employee benefits and jobs. This has become a common response in many organizations: when a crisis hits, cuts start from the bottom while management continues largely unchanged. But what if the real problem lies in decisions made or not made by management? When a critical situation is caused by a lack of change, do managers take responsibility for their choices or is the burden unfairly placed on the shoulders of employees?
When times are tough, the first step is often to cut wages, cut benefits, or even lay off workers. Why? Because it’s the easiest thing to do and provides immediate short-term cost savings. But does it really solve the company’s problems? If we look deeper, the question becomes: Why are employee contributions being cut in the first place, rather than reevaluating management decisions? When a company is in crisis, should we believe that the front-line worker is responsible for how production moves or how market trends are assessed?
The reality is that managers set strategy, choose direction, and make decisions about how the company will compete in the marketplace. If these decisions fail, why should employees be blamed for the loss of profitability? Is it fair to hold a production line worker accountable for market changes or bad management decisions?
We can draw a comparison from the world of team sports. In sports, we have seen how even the best teams do not always guarantee victory. Conversely, average players can easily outperform top stars with the right management. The success of the team does not depend only on the individual talent of the athletes; the role of the coach is critical. In sports, the coach is responsible for the strategy and tactics used against the competition. If the team loses, the coach has to take responsibility. We rarely see players being sacked or replaced en masse after a poor performance. Instead, a coach who does not achieve the desired results is scrutinized.
So what about business? When a company is struggling, we don’t often see executives resign or be replaced. Instead, the focus is on cutting jobs and reducing employee-related costs. It’s like blaming employees for a failed business strategy or falling sales numbers. However, these employees do not make decisions about market position, production or sales strategy. Management often stays put, despite the fact that it is their indecision or poor judgment that has gotten the company into trouble.
In many organizations, the division of responsibility is questionable. Why are workers the first to be targeted in hard times? They are, as it were, responsible for management mistakes or business strategy failure. When a marketing strategy fails due to a misunderstanding of customer relationships, or when product development misses the mark – do we really blame the assembly line worker? The truth is that these issues fall squarely on the shoulders of management. They drive the company’s strategy and they have to bear the responsibility when things go wrong. But too often that doesn’t happen. Management stays put until workers resist layoffs or reduced benefits. A company’s difficulties are often the result of “inadequate employee input” rather than management failure. It seems that when the company is performing well, success is considered the vision of the management. But when things go wrong, the employees take the blame.
There are several reasons for this. Managers tend to have more power and discretion, which allows them to protect their positions by shifting blame downwards. In addition, organizations are often structured in such a way that responsibility is dispersed, creating ambiguity about who is truly in charge. But the truth is that crises are rarely the employees’ fault. Strategic errors and indecision occur at the management level. In times of crisis, it’s easy to point the finger at employees because it’s a quick fix. Cutting labor costs gives the company some breathing room, but it doesn’t solve the underlying problems. The solutions lie in management: can they accurately assess the situation, recognize the signals of market changes, adjust strategies when risks materialize and take responsibility for the company’s success?
Leadrship is not just about monitoring day-to-day operations and responding to problems as they arise; it’s about creating a long-term vision and motivating the team during difficult times. Managers have a responsibility to accurately assess market conditions and guide the company through turbulent waters. When a company finds itself in crisis, it is often a sign that management has failed to fulfill these responsibilities. Like a sports coach, a leader must take responsibility for failure and step aside when necessary. If the driver does not do it himself, this decision falls on the shoulders of the owners.
Organizations need to rethink how responsibility is distributed. Managers have a central role and their responsibilities should be clearly defined. If, for example, sales revenue decreases, the first solution should not be to cut costs for employees, but to review the decisions made by management. Is the strategy flexible enough? Have all options to improve the situation been explored? Is bad decision making the real problem? Employees can be laid off to reduce costs, but if the organization’s operations and strategy are not corrected, layoffs will not save the company.
Responsible leadership means being willing to accept the results of your decisions – whether they are successful or not. The best managers know that employees are a company’s greatest asset, and keeping and motivating them is the core of effective management. Difficult times provide an opportunity to make better decisions rather than taking the easy way out by making cuts at the expense of employees. In fact, process and management inefficiencies are often the biggest sources of cost.
When the company is facing difficult times, the leader must be the first to look in the mirror. Are their decisions the cause of the company’s crisis or is the problem elsewhere? Managers are responsible for ensuring that the company can survive and grow in the market, and they must be willing to take responsibility for this. Managers are like the coaches of a sports team: they have to set the strategy and lead the team. If the strategy fails, the responsibility should not be placed on the shoulders of the employees. A team’s success or failure begins and ends with management decisions. Are you ready to take responsibility for yourself?