John Waters, Inc. is a large firm specializing in engineering consulting and planning. From 1973 until 1983, the firm grew exponentially, increasing its technical and support staff from 95 to nearly 500 people. By 1985, the number of personnel had stabilized to some 550.
The firm uses a matrix organization; while staff may be assigned to a technical or engineering specialty such as structural, thermal or environmental engineering and report to the appropriate manager, they also work on various jobs under project heads.
Internal Communication at John Waters, Inc.
Because of the company's rapid growth and the large number of new employees each year resulting from both staff additions and turnover, management decided to institute a program of "informational meetings." Begun in 1984, these sessions were scheduled over a period of several weeks, each meeting attended by no more than 20-30 staff members. Management spread out the meetings over a period of time to enable all employees to receive relatively personal attention.
Addressing the meetings were the president, Paul Thomas, and personnel manager, Lee McBride. Representatives of the various corporate groups such as accounting or marketing would occasionally attend as well. The meetings' theme usually encompassed history and projection of the future: "how we got there, where we are going," so to speak. Thomas was a highly energetic, action oriented executive who took pride in his company's development. While he no longer knew all of the employees personally, he wanted to convey his interest in their work.
Mr. Thomas, an engaging speaker whose charm had been instrumental in not only attracting high quality personnel but in retaining contracts as well, usually did most of the talking. He discussed revenue goals, financial, technical and staff developments and projections for the coming years. The meetings were held in the Board Room with everyone seated around the large conference table. Yet, Mr. Thomas desired an informal atmosphere: wine and cheese was served after the session's end. Thomas and co-presenters invariably responded to all questions, although the more difficult ones were parried with wit rather than direct response.
To keep staff informed of company policy and of company events, two bulletin boards could be found near the coffee area on each floor of the Manhattan office. One board was set aside for official notices and memos, and the other was reserved for employee notes, bowling scores, conference notices, and the like. Mr. Thomas frequently used posted memos to make announcements of promotions, policy changes and general information.
Like many firms, John Waters, Inc. maintains an internal newsletter containing items about staff promotions, professional achievements, sporting events and office activities. The newsletter does not permit unsolicited employee contributions.
For a brief period in the early 1980's, the personnel department published another newsletter. In it, employees wrote anonymous questions or comments about company policy. The newsletter came to a quiet end when the young woman who had been assigned the task of producing it left the company.
The Late 1980's: John Waters, Inc. and the National Economy
After 1989, some groups at Waters began experiencing "soft spots" in the work-load. As a result, some personnel went from job-chargeable work time to overhead. Since the cost of overhead is built into rates quoted to prospective clients, the company could quote competitive rates and maintain its favorable price structure.
These "soft spots" reflected cuts in federal spending for public works projects, changes in policy by the Environmental Protection Agency as well as contractions in the economies of several states in the Sunbelt where John Waters had previously retained many contracts. Many employees discussed the subject of decreasing company profits and the topsy-turvy fortune of a company that only several years before had expanded with the aid of federal funding to state and local governments. Although no one seemed to have many facts, it was generally accepted that John Waters, Inc. was having hard times. A period of belt-tightening, not surprisingly, began. Management sought cost-cutting measures in every area and overhead budgets came under intense scrutiny.
At the same time, some groups involved in other work projects received stepped-up work schedules. Existing staff in these groups were hard pressed to handle the volume of activity required by the new dictates.
In early June of 1990, several technical and administrative staff members were fired. In advance of the dismissals, rumors circulated through the company about impending lay-offs, and a sense of dread permeated the offices. Several clerical positions were not filled after becoming vacant. Typists were shifted to even-out the workload. Overtime was strongly discouraged. And yet, employees reassured each other that the company was basically sound. According to the grapevine, other environmental companies were firing as many as half of their engineering staff. No such "purge" seemed likely at Waters.
During the same period of early summer, 1990, some familiar faces reappeared in the offices of John Waters, Inc. A few former employees who had left for other jobs had apparently been rehired and were working on one of the larger design projects.
A number of "free lancers"
also began working in the drafting area but did not mix much with the rest
of the staff. On the morning of August 5, a handwritten note appeared
on the bulletin board of the floor occupied by the personnel department:
You are Lee McBride, Personnel Director of John Waters, Inc. You've shown the memo to Paul Thomas and briefly discussed the situation at the company. Because he's wrapped up in negotiations with a new client, he cannot completely concentrate on what you're saying. And, he doesn't have the time to discuss the matter in depth. He asks you to write a memo to him analyzing the situation and making recommendations as to how best to proceed.
You've been in this position for the past seven years and have earned Paul Thomas' respect and friendship. At the John Waters Company, the Personnel Department is a significant "player" in the corporate hierarchy.
© 1987 New York University, Stern School of Business, Management
Communication Program. All rights reserved. Revised 1999.