SERIES OF ARTICLES
In order to better support our companies, we are launching a series of expert articles aimed at supporting organizations and their HR function to position themselves strategically in the current context of uncertainty, and to anticipate challenges to optimize their performance. Several topics will only be briefly covered in the next few lines, but we will come back to them in more detail in our next articles. The members of the Solertia team – HR Center of Expertise, are mobilized to support you in this period of instability.
We aim to provide you with high-quality information, along with practical tools and strategies. Some industries may be more affected than others, and the impact of HR varies across different sectors.
This second article is intended for entrepreneurs, executives and the HR function of Canadian companies whose business strategy is affected by the threat of U.S. tariffs.
In our previous article, Impact of U.S. Tariffs on Small and Medium-Sized Businesses: Implications and Strategies for the HR Function, we discussed the importance of the HR function being involved in reviewing business strategy in response to the new tariffs. We would like to remind you that it is essential to assess the impact on your organization in terms of the business strategy in order to anticipate and effectively manage the resulting HR issues and impacts. Moreover, the organization’s HR capabilities play a key role in evaluating possible strategies. Otherwise, even the best strategy cannot be executed if we do not have human resources to implement it.
We have also launched a list of HR essentials to review in the current context. This list is intended to be collaborative with the HR and entrepreneurial community in Quebec. Many of you have contacted us to offer ideas for improving the list. You can find the updated version below.
At the heart of this transformation and turmoil are employees; real drivers of our organizations. It is crucial to involve them in the reflections and actions resulting from these new economic dynamics, and thus, to mobilize them in the management of change.
In this article, you will find key elements to effectively manage this change within your teams.
Building a Common Understanding
The first two actions will allow you to build a common vision of the context and the changes to come. This is a first key to a successful transformation.
1. Communicate to Reassure
Quickly inform your employees of new tariffs, if it has not already been done, and what it means for the business. Be transparent and authentic about the ongoing reflections, upcoming actions, and negative consequences you want to avoid by acting quickly.
Set up regular communication moments to answer questions, to address the uncertainties and ensure a smooth and accurate flow of information. Identify the employees most likely to be affected or worried about tariff threats. Determine the best approach to involve them and communicate, in a timely manner, the direction the organization intends to take.
2. Train to Advance
Train your teams on the concrete impacts of the new tariffs by explaining the repercussions on the economy, on your industry as well as on the various functions of the organization, prioritizing those directly concerned. Do not assume that everyone understands the magnitude and expected consequences of these tariffs. Take the time to explain them with the appropriate context and tone.
It is essential to highlight the benefits, the mitigated risks, and the reasons for the change to facilitate acceptance and integration of the new business direction and the resulting processes. Additionally, providing proper training on new processes or technologies will help facilitate the transition.
Educate your teams on agility and resilience; these skills are essential in a changing and uncertain economic environment. To do this, it is essential to ensure strong leadership alignment among the Organization’s management and to lead by example by demonstrating high adaptability and agility, particularly in the management of priorities.
Engaging in Change
The following actions will allow you to mobilize and engage all teams in the change. This is a second key to a successful transformation.
3. Engage for Success
Leverage your talents and specialists by involving key employees in the decision-making process. Seek their input to enhance adaptation strategies in response to new tariff structures, such as cost optimization and process improvement.
Create work groups or crisis committees to plan and implement changes in collaboration with teams, making them active participants in the transformation. This approach will not only provide reassurance but also strengthen engagement and a sense of belonging by involving them in the solution.
4. Equip to Take Action
Identify the key roles and skills needed to implement the chosen strategies.
In this context, it is almost certain that roles and responsibilities will be changed to allow the new strategy to come to life. This may be a good time to use or refine your Responsibility Management Matrix (RASCI). Our article on the subject can help you with this: RASCI, the Responsibility Matrix Tool: a means for overcoming labour shortages by optimizing the efficiency of work teams.
Build capacity by providing the right coaching, resources and decision-making flexibility to succeed. Use transformational leadership; delegate to teams rather than dictating what to do, this will motivate them and give them the autonomy to move faster.
5. Evaluate to Adapt
Regularly measure the evolution of teams and results so that you can quickly adjust your actions and strategy. Stay agile! Provide the support needed to enable teams to overcome challenges. Use key metrics, both human, operational and financial, to evaluate impact and benefits on an ongoing basis.
It will be beneficial to use an engagement survey to continuously take the pulse of your teams and to adapt the change management strategy accordingly. An ad hoc survey can also be used.
In Conclusion
It is essential to provide all stakeholders in your organization with a common understanding of the situation in order to better anticipate and lead changes together. You must commit, equip and support the implementation of the actions necessary to navigate through this economic uncertainty and thus ensure the sustainability of your company and the retention of your key talents.
By taking a proactive, strategic, and agile approach to the threats of U.S. tariffs, leaders and the HR function can not only protect their organizations, but also position them for a prosperous future.
Contact Us
This situation is new to everyone and is changing rapidly. Stay tuned for our next articles on this subject and contact us if you need any support.
Do you have any questions after reading it? Would you like us to delve deeper into a particular topic? If you would like to discuss this with one of our specialists, please contact:
Frédérick Blanchette, President, Managing Partner: 1 844 220-8008, Ext. 206 • fblanchette@solertia.ca
Stéphanie Saumur, Strategic Manager: 1 844 220-8008, Ext. 489 • ssaumur@solertia.ca
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