Sunday, April 14, 2013

Telecommuting at Yahoo and the importance of communication

I have been thinking recently about the Yahoo CEO Marissa Mayer's decision to stop telecommuting at Yahoo.  While I have a number of thoughts about the wisdom of doing so, I want to write this post about something else: Communication.

It is well known that humans like to understand the reason for things.  In fact, many social psychologists spend a lifetime studying attribution.  Whenever anything happens or people behave in a certain way, people try to figure out why.  This is especially true for CEO behaviors, particularly those that have such a personal impact.

Again, while the reasons may have been good as to why telecommuting was curtailed at Yahoo, and there are many good ones available, the real issue was that the reasons seem to have not been provided to employees and they were left to figure it out on their own.  And, more than likely, the reason that most employees will come up with is wrong.  This is where the real problem exists.

Communications scholars also know that a rumor flourishes in the absence of information and that informal networks at companies are faster and more trusted than communiques from management.  By not providing a reason for the behavior, Ms. Mayer is guaranteeing that the rumor mill will be running rampant.  The other issue with a rumor mill is that it cannot be controlled by management.  Once a rumor has started, it will spread and become part of the fabric of the company.  Even if the real reason is eventually provided, it will be much less likely to be believed. This is even more true if there is an issue of trust regarding Ms. Mayer, which this action has undoubtedly precipitated.

Bottom Line for managers: Make sure that any change is accompanied by an abundance of communication and that the opportunity for high quality feedback is available.  This suggests using as rich a communications media as possible.  So, rather than a memo, small group meetings, or even where possible face to face communication should be the norm.  You really don't want your employees making up reasons for things that are going to be wrong and potentially damaging.