Mindsets matter: Are your leaders on board?

When the pandemic hit, companies around the globe transformed overnight, powered by adrenaline, survival instincts and a workforce united with management against a common threat.

Now as the C-suite looks to launch transformation initiatives to tailor costs to new economic realities, they face a distinctly different threat: Employee mindsets have shifted. Dramatically. Most alarming is that the greatest disconnect is likely among those closest to the C-suite – the top managers who must lead the charge, rally the troops and execute change initiatives. In fact, one-third of upper managers and nearly one-quarter of middle managers are either change resistant or alienated at work.¹

This disconnect is not only startling, it is a massive liability, which is why leaders must act with urgency to understand the mindsets of employees today. Because achieving meaningful change is not about issuing edicts: it’s about enlisting employees in the mission.

Companies were forced to make immediate, radical changes to survive during the height of the pandemic. Now, the C-suite will need to focus on longer-term transformations to drive growth and resiliency – circumventing silos and tailoring costs to support new business models and build capabilities, including technology and talent. However, it is clear this business transformation is not going to look like those in the past. Lasting change has always been elusive with major transformations. The threat now as the C-suite prepares to launch transformation initiatives is that employee mindsets have shifted. Significantly.

This new dynamic raises the stakes. It requires the C-suite to approach change initiatives differently, with a deeper understanding of employee mindsets and new, more meaningful ways of addressing them. The pandemic brought together employees and management as colleagues fighting a common enemy. More than a year later, employees expect more from their leaders. They are also fatigued. Many are searching for purpose in their work. Moreover, they are asking fundamental questions about the role of work in their lives. The old days of top-down edicts from the C-suite are over.

The prolonged realities and stress of work and life without outside distractions have people re-evaluating their priorities. Many are making moves as a result. They are not just leaving their jobs. They’re moving across country, changing careers, rethinking their work week and commute, or leaving work entirely through early retirement.

There is a clear dynamic at play that goes beyond pent-up desire to change jobs. After a year of lockdowns, workers have not only reimagined their jobs and careers, but they are also reconsidering their ambitions and how their work lives contribute to their lives more broadly.

Leaders cannot ignore this new dynamic. We all know employees are as important as customers. Yet many leaders still approach them as a captive audience with top-down communications focused on informing them instead of enlisting them in the transformation initiatives. There is a stark contrast between the two.

To be successful, employees need to be partners in the transformation, yet many are not. The failure to actively enlist workers in change processes can lead to critically low levels of engagement. Most concerning? The greatest dissent is found among upper managers–employees that play a critical role in leading the charge, rallying the troops and implementing change. They are least likely to be on board with transformation measures. One-third of those closest to the C-suite are either resistant to change or alienated. About the same is true for nearly one-fourth of middle management. If those on the front lines – managing directors, senior vice presidents or plant managers – are not on board with the mission, it is unlikely to be successful.

It’s no longer a binary question of whether you employ a top-down or bottom-up approach to transformation but finding the balanced path that works for your situation. Speed and clarity of direction are important, as are employee buy-in and trust. Finding the right balance is key. Understanding where your employees’ mindsets fall both individually and across the organization can enable a customized approach for each mindset segment.

We found four distinct mindsets in our research:

The COVID crisis made it clear to employees and business leaders that they have to get there together, or they don’t get there at all. This is one pandemic lesson that still applies.

Transformation cannot be something that happens to employees. It should happen with them.