As companies continue to lay off employees in droves, Silicon Valley
has become a survival battleground for middle and senior managers
-- and it may be draining the bottom line.
Key to survival
is effective communication with CEOs and board members, said a group
of "big dog" valley executives at the "Speaking to
the Big Dogs" conference this week in Redwood Shores.
Panelists included
E.piphany Inc. co-founder Steve Blank, Propel Software Corp. founder
and CEO Steve Kirsch, Aerogen Inc. CEO Jane Shaw, Cisco Systems
Inc. vice president Bill Rossi and Trust of Public Land COO Felicia
Marcus.
More than 300
middle and senior managers attended the conference, from companies
including ALZA Corp., KLA-Tencor Corp., Lockheed Martin Corp. and
Novellus Systems Inc.
Blank said
managers are increasingly nervous these days.
"If they're
not, they should be," he said. "In the past booming businesses
tended to cover up weak executives. Now it takes strong executives
to cover up weak businesses."
Increased anxiety
and nervousness was the cry from attendees.
"People
are on edge," said attendee Leonard Marshall, a Novellus design
services supervisor. "Definitely there's more work and pressure."
Members of
his team now work 50 to 60 hours a week, regularly on Saturdays
and sometimes on Sundays. His six-strong group used to include 14
employees who worked 40 to 50 hours a week.
With layers
of personnel being stripped away, employees are feeling more exposed,
said conference attendee Bill Cotter, a Novellus management development
manager.
He said the
effect is increased individual productivity. However, because fewer
people are doing the work, overall productivity has not increased.
Event organizer
Rick Gilbert, president of Redwood City-based training company Frederick
Gilbert Associates Inc., said the management fear factor is very
real.
"Fear
of being laid off is in the back of their minds," Gilbert said.
In the face
of shrinking budgets, he believes management teams are increasingly
competing for project money, which means added stress and anxiety
when talking with C-level executives -- CEOs, CFOs, etc.
"The fear
of blowing it has increased," Gilbert adds.
"More
employees are now being asked to present their corporate insights
to the big dogs", said Cisco's Rossi.
"It means
more risk for some little dogs," Rossi said. "At Cisco
we're digging into operations more. É It's been a good thing
for those with reasonable aspirations."
Rossi believes
most middle and senior managers relish the chance to talk more to
top executives.
But attendees
said otherwise.
"There's
a level of insecurity," said Novellus attendee Molly Foster.
Attendees from
other companies echoed her sentiments, but asked that their name
and company name remain anonymous.
Managers' nervousness
and insecurity may have ripple effects, said Blank, E.piphany's
co-founder.
For example,
managers may delay giving bad news to the big bosses, which could
drain a company's bottom line.
"These
days CEOs need "bullets not bullsh*t," Blank said. "A
certain level of manure was acceptable in boom times, but not now."
When dealing
with CEOs, managers should give them the skinny, advises Gilbert.
"Make
your first line your bottom line," Gilbert said. "They
want to know: What problems you are dealing with and what you are
doing to solve them. If you have good news, tell us how you're going
to roll it out to other divisions or clients."
Speakers' other
pearls of wisdom included: Practice your pitch in 45 seconds; limit
your presentation to three core messages; and if the CEO or board
begins to fidget, re-engage them by asking a question.
Possibly the
most salient piece of advice came from Aerogin's Shaw: Use data
to make your point.
"If you're
a big dog and you're not persuaded by data, then in God we trust,"
Shaw said.
The executives
agreed the rules of communication have changed in today's shaky
economic climate.
Like Blank
said: "Dealing effectively with big dogs used to be nice to
have. Now it's a) essential; and b) at minimum gives a company a
competitive edge."
Rhonda Ascierto is a Biz Ink reporter.
You can reach her at
rascierto@svbizink.com.
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Valley
CEOs want bullets,