Walking the Talk – Management Must Lead by Example

In today’s economic environment businesses are making tough decisions.  They are laying off people at a great rate, cutting back on non-essential costs, and pushing through price increases on their customers, all in an effort to improve the overall performance of a business.  Banks are a great example of this, they are looking for any way to increase their revenues through new fees and charges while quietly (and sometimes not so quietly) laying off people. These businesses, especially the public ones, have no choice.  Their share prices reflect the belief by shareholders in higher and higher returns from these companies.

However, while these changes in an organisation can be difficult for the employees (no one likes to see collegues lose their jobs), senior management often dont cut back on their pay packets or their perks, thereby creating an us and them culture in a business.  If senior management don’t walk the talk, they run the risk of undermining the culture of a business.