The Few & the Many: Free Trade, Outsourcing, & Communication

Home
>
Business Management
>
The Few & the Many: Free Trade, Outsourcing, & Communication

The Few & the Many: Free Trade, Outsourcing, & Communication

Have you noticed that some sound ideas get bad publicity? Two I have in mind are outsourcing and free trade.

No doubt you could name others, but looking at these two initiatives helps us understand a communication challenge for many companies and not-for-profit organizations.

Free trade and outsourcing both produce a few (well, relatively few) big losers, and many (very many) small winners.

More specifically, free trade leads to big losses for a relatively small number of companies and their employees. Companies can go out of business or be forced to drastically restructure; employees can lose their jobs. The adjustment pains they suffer are very real and very significant.

On the other hand, all consumers in a country that adopts free trade are winners. In other words, just about everybody. The gains for each person are small, yet, taken together those gains far outweigh the losses suffered by the losers. And the gains keep paying dividends year after year.

The story is much the same for outsourcing. A few employees take a very big hit, losing their jobs. At the same time, though, a lot of other employees get to keep their jobs because their companies become stronger. A few suffer for the many.

Which do you hear more about? You hear far more about the losers, of course. Why? Well, as a former news writer and announcer I can tell you that losers holler louder and longer. They actively seek media coverage. And that's not all: stories about layoffs have an inherent drama that stories about the preservation of jobs just can't match.

In addition, small-scale winners often don't know they've won, how they've won, or what they've won, so they don't march in protest or call news conferences. Add to that the general principle that good news isn't big news.

What do you do if you face a decision leading to many small winners and a few big losers? First, hammer away at the context, at the circumstances that drive the decision. For example, don't announce to employees that a new piece of equipment that does the work of three people will make you more efficient. Rather, explain the competitive pressures that force greater efficiency, and the consequences of failing to meet those pressures.

Don't assume everyone shares your knowledge. Few stakeholders understand the broader picture, and even if they could, the pressure of day-to-day events may keep them focused on just one piece of it. It's essential to start with as few assumptions as possible.

Communicate frequently: in advance, during, and afterward. Explain the problem, outline the options, list the decision criteria, announce the solution, and report on how well the solution has worked. Or not worked, which becomes the new problem.

You won't convince everyone your decision is the right one, but you might convince enough people to make further progress possible.

In summary, when a few people suffer big losses and many others make small gains, you can expect the losers to complain very loudly, and the winners to say little or nothing. To deal with these situations, communicate frequently and carefully.

Robert F. Abbott writes and publishes Abbott's Communication Letter. If you subscribe, you will receive, at no charge, communication tips that help you lead or manage more effectively. You can get more information here: http://www.Communication-Newsletter.com

In The News:

Yahoo! News: Top Stories

Job losses stack up as recession deepens (AP)

AP - Trying to survive a deepening recession, employers are cutting their work forces to the bone, leaving more Americans unemployed and with dim prospects of finding a new job any time soon.

Illinois House on verge of impeaching Blagojevich (AP)

AP - Gov. Rod Blagojevich faces almost certain impeachment by the Illinois House, a historic step that would trigger a trial to determine whether the Democratic governor should be tossed out of office.

Rifts show as Obama urges quick action on stimulus (AP)

AP - Lawmakers are under orders to finish action on President-elect Barack Obama's nearly $800 billion economic recovery plan by mid-February. But already it is plain that a set of serious fissures need to be bridged if the bill is to be completed within five weeks.

Israel to continue offensive despite UN resolution (AP)

AP - Israeli jets and helicopters bombarded Gaza Friday and Hamas responded with a barrage of rockets, as Israel's government said it will press forward with its offensive despite a U.N. resolution calling for an immediate cease-fire.

Obama to finalize national security team Friday (AP)

AP - President-elect Barack Obama is completing his national security team by announcing his unusual choices for CIA director and a national intelligence director who may face tough Senate confirmation questioning over how he confronted the Indonesian military when civilian massacres were occurring in East Timor.

Stocks point lower ahead of employment report (AP)

AP - Investors showed nervousness Friday ahead of the government's monthly employment report, sending stock futures moderately lower.

Democrats begin new session with labor bills (AP)

AP - Democrats are ushering in what they believe will be a new labor-friendly era in Washington with House votes on two bills aimed at helping women fight pay discrimination in the workplace.

Broadcasts to mobile devices to start in 22 cities (AP)

AP - TV stations in 22 U.S. cities announced Thursday that they will start broadcasting their signals this year in a format designed to be received by mobile devices like cell phones, MP3 players, GPS units and in-car entertainment systems.

Ex-'Sopranos' actor faces prison for burglary try (AP)

AP - A former actor on "The Sopranos" faces up to 15 years in prison for a botched burglary in the Bronx in which an accomplice shot and killed a police officer.

Tebow leads Fla. past Okla. 24-14 for BCS title (AP)

AP - Tim Tebow gave Florida the jolt it needed, and the Gators toughed out a second BCS title in three years. Their 24-14 win over No. 2 Oklahoma in a choppy, sloppy affair Thursday night made them a national champion.

World waits on jobs data as recession weighs (Reuters)

Reuters - Steep falls in European industrial output underlined the severity of the world economic crisis on Friday and more grim news was on the way with the United States expected to report the biggest monthly job cuts in more than 30 years.

U.N. calls for immediate Gaza truce (Reuters)

Reuters - Israel pushed ahead with its two-week-old offensive in the Gaza Strip on Friday, defying a U.N. Security Council resolution calling for an immediate ceasefire.

Panel steps up criticism of Treasury: report (Reuters)

Reuters - A report being released on Friday alleges that the U.S. Treasury has failed to reveal its strategy for stabilizing the financial system, not answered questions asked by a government watchdog, and has done nothing to help struggling homeowners, the Wall Street Journal said.

Obama team working on overhaul of financial rescue (Reuters)

Reuters - U.S. President-elect Barack Obama's economic team is working on an overhaul the $700 billion financial rescue program with the aim of doing more to spur the flow of credit to the struggling economy, an Obama aide said on Friday.

EU seeks gas supply return after deal on monitors (Reuters)

Reuters - Russia's state-controlled gas monopoly said a deal to monitor gas exports via Ukraine would be signed on Friday, allowing for the resumption of supplies to Europe cut off by Moscow's price row with Kiev.

Citi backs measure to help avoid foreclosures (Reuters)

Reuters - Financial giant Citigroup Inc will support a proposal in Congress to rewrite U.S. bankruptcy law to help troubled mortgage borrowers avoid foreclosure, Chief Executive Vikram Pandit said on Thursday.

Illinois panel recommends governor's impeachment (Reuters)

Reuters - A legislative committee on Thursday recommended the impeachment of Illinois Gov. Rod Blagojevich, citing widespread abuse of power including allegations he tried to sell the U.S. Senate seat vacated by President-elect Barack Obama.

Health care overhaul needn't break bank: study (Reuters)

Reuters - An analysis of proposals to overhaul U.S. health care by President-elect Barack Obama and members of Congress suggests it is possible to insure all Americans without significantly raising total health spending.

Israel presses on with Gaza strikes despite UN resolution (AFP)

AFP - Israel battered Gaza with bombs and shells on Friday, vowing its offensive on Hamas would go on despite an order by the UN Security Council to stop the assault that has killed hundreds of civilians.

Russia hopeful of resuming Europe gas supplies (AFP)

AFP - Russian gas deliveries to Europe could resume later Friday, the head of Russia's state gas firm said, raising hopes for an end to a transit dispute with Ukraine that has left several European states without gas at a moment of bitter cold.

The Few & the Many: Free Trade, Outsourcing, & Communication

Business Management Business Management