Bottom line: it is not the change that is problematic; it is how you handle it. Often times, when changes in executive management and leadership roles are not handled properly, the effects of these changes can manifest in unintended ways: declining morale, lack of productivity, gossip, and even job dissatisfaction; all things that have potential to be a disease in your company.

Open communication with employees

A company's culture is often defined by its leadership. When leadership behaves secretively, you can be assured that staff will mirror the same behavior. Let your staff know what is going on. It seems simple, but by communicating changes and giving people time to mentally adjust to major shifts in leadership, you will effectively squelch gossip about the "what ifs."  Sharing decisions with staff creates a strong culture of empowered employees. Each culture is different, and communication styles may differ, but if you have strong, confident leaders, staff will want to emulate that.

When U.S. Energy Services decided to make a change in its leadership, the executive staff thought it best to talk about the restructuring in a company-wide meeting. Our company culture has always been open and honest, whether it concerns our financials or major business decisions, employees are kept informed. Although our restructuring had been planned for some time, it was a topic worth revisiting for both older and newer employees. It was necessary to continue to be upfront about what the company was trying to accomplish, why the changes were important, and how the changes affected employees. We felt it critical that that we, as leadership, reiterate an "open door" policy to address any concerns.   

As a leader, offering structure and reassurance to employees becomes that much more important when major changes are on the horizon. To be candid, some people handle change better than others. Change is often intimidating and unsettling, and can be perceived a number of ways. Find new ways of communicating. Take the time, even when it's scarce, to clarify what employees can expect and how this change may affect them.  Try to keep company messages direct, specifically address potential concerns and encourage questions. It is rare that you will hear complaints about too much communication.

Consistent messaging from executives

To avoid confusion among employees and a prolonged period of uncertainty in the workplace, the executive team must present one consistent message explaining the reasons for the change in leadership - and present the message early in the process. Any disagreements regarding the message must be recognized and resolved prior to presenting the changes to employees.

Disagreements happen among executives, but an inconsistent message or the appearance of disagreement between the leadership team will quickly permeate through the rest of the company, creating confusion and frustration among employees. If the inconsistencies continue, employees will likely begin to lose trust in newly appointed executives and question the authority of other team members.

Listen, but lead

Reiterate to employees that you are open to their feedback. Take measures to assure employees that their feedback will be heard and taken under consideration. At the end of the day, employees want a leader who will make decisions and take action. Know that you will learn from this experience, but continue in the leadership style that has brought you to this position.

I've learned even when schedules are tight and deadlines loom, dedicating the time and planning necessary for a smooth transition will not only serve as a benefit to the workplace environment, but it will also positively reflect upon you as new company leadership.

 Note to the reader: Todd Overgard was appointed president of U.S. Energy Services in January 2010.