Help! Our New CEO Is Ruining the Workplace

Dear Mike,??

I'm a senior HR manager at a well-established company that has recently gone through a major public scandal involving our former CEO, whose questionable financial decisions and unethical behavior (which included diverting company funds for personal use and misleading investors) have left our employees feeling betrayed and demoralized. To regain stability, the board has appointed a new CEO, Jane, with a strong reputation for ethical leadership. However, Jane has implemented a series of drastic changes in company policies, which has only added to the overall unease among employees.??

For example, she has imposed strict controls on expenses, requiring even minor expenditures to be approved by multiple layers of management. Additionally, she has introduced a rigorous performance evaluation system that many employees feel is invasive and demotivating, leading to a tense atmosphere in the workplace, with employees frequently expressing frustration and anxiety during team meetings and over the water cooler.?

From an HR perspective, I understand the need for Jane to demonstrate strong leadership and take decisive action to repair our company's image. However, I'm also concerned that her approach is causing further unrest and disengagement among our employees. How can I work with the new CEO to strike a balance between implementing necessary changes and addressing the emotional needs of our employees, while also rebuilding a sense of trust and confidence in the company's leadership??

Sincerely, Worried About My Worried Team?

Dear Worried,??

Poor Jane. This is a difficult situation, but you need to meet her with a little bit of give. Can you suggest some areas to Jane where she can connect with the employees, either through communication or by loosening up on things that aren’t that important? You and Jane need to stay on top of how things are moving, because I’m sure you’re both aware that too much change, too fast can be impactful – and not necessarily in good ways. Sometimes, too much change prompts people to question whether staying at the organization is right for them.?

From Jane’s perspective, she needs to clarify the purpose of these changes and make a sort of informal deal that, as the company starts to right itself, they’ll get back to an operating model that people are more comfortable with. Fixing things, in any context, starts with internal transparency, and she needs to make sure people understand that the company isn’t taking a hard look at minor expenditures to make individuals responsible for bad organizational choices, but rather trying to implement transparency across the organization so that everything feels sensible.??

Fixing things, in any context, starts with internal transparency

Positioning Jane as the bad guy here isn’t going to be helpful. At the end of the day, no matter where we fall in the hierarchy, all of us have messy, complicated personal lives to face when we leave the office. Leaders, no matter how high they build their shiny walls, are human beings who suffer and struggle just like everyone else. Letting a little of her human side peek out may encourage people to stop treating her like an interloper. I’m not saying she needs to host group therapy sessions to disclose the details of her personal life but a little bit of genuine camaraderie is likely to help everyone. It might be good for you to spend some time with Jane and find out where her comfort level is, and how to best expose her personality — and the human side of her — to the rest of the employees.??

I do that by goofing around in meetings. Usually, even when the topic of discussion is serious business, it’s not quite that serious. One of the first things I did at Yapstone was show up in an eagle costume (not a cool football jersey, but an actual bird costume from my 4th of July party). You and Jane need to figure out what will work for her – not everyone has an eagle costume to leverage.??

HR managers often feel a strong connection to their employees, sometimes even more so than to their own leadership. Given the tone of your question, you may want to take a minute to examine where you’re coming from. Right now, your company is facing an uncertain future and you're all looking toward Jane for help. It may feel like she's punishing everyone for mistakes made before her arrival, but HR isn’t meant to take any one side, but rather to act as a mediator. Jane can extend the olive branch, but it's up to the team to see it as something positive instead of a punishment. This isn't about taking away from them; it's about helping the company survive through difficult times. If they can take a step back and look at what this transition could bring them, instead of getting bogged down in the negative, then Jane may emerge as everyone’s hero. But only if everyone is willing to put their internal preferences aside and push through.?

In today's business climate, most of us feel unsure at least a few times a week. If you have a question about a difficult workplace scenario, my inbox is always open. Message me here on LinkedIn or leave your questions for me anonymously . After 22 years as a serial fintech entrepreneur, I've averted my share of disasters. Let me help you outsmart yours.