Phil Wilson (00:01)
Nick Kalm, welcome back to the Left of Boom Show. It’s great to see you.

Nick Kalm (00:05)
Phil, great to see you too. Thanks for having me again.

Phil Wilson (00:07)
Yeah, so if you haven’t seen other episodes with Nick, Nick is the leader and founder of Reputation Partners, a good friend and also a work colleague. We do a lot of work together. So Nick, welcome back to the show.

Nick Kalm (00:24)
Appreciate it. Good to be here.

Phil Wilson (00:25)
So today’s episode, we’re talking about communicating right of boom. And when I wrote the book Left of Boom, the boom event in Left of Boom is really more like a union election. The current series that we’re recording right now is around the next 52 weeks. And most of the people that are listening to this are in a situation where they’re trying to avoid a future election.

So if you’re actually in that one year after a vote, or you just in general are trying to create a workplace where people don’t think a union is a good idea. And in those workplaces, there’s still boom events. There’s all kinds of things that can be boom events.

So what I’d like you to do is start right there. How do you think about and talk to your clients about dealing with these boom events, things that would create animosity or negative PR during the regular course of business?

Nick Kalm (01:29)
Sure. Absolutely. I think people are under a tremendous amount of stress these days. Financial stress, personal stress, all the political environment that we’re living in today has just created a tremendous amount of stress. The hangover around inflation, employment uncertainty because of AI, and the return of layoffs that we’re seeing with companies as well.

All of this is really having a big factor now on people’s stress. And I think employers need to have a good baseline understanding that these are issues that are just bubbling below the surface in every organization, whether it is a great place to work or one of those places where morale is terrible and people can’t wait to get out.

On top of it, is the organization communicating well with the employees? Is it listening well? Does it have a good handle on employee sentiment, turnover, safety, attendance, recruiting, retention, morale? All of these things are good canaries in the coal mine indicators that you are vulnerable.

You put those two together, what’s going on in your organization plus what’s going on in the country and the world, and that gives you a good indicator of anything that’s going to change the employee experience. Whether it’s scheduling, compensation, staffing, benefits, work location, AI integration, the list goes on and on.

Phil Wilson (04:07)
Yeah. And that’s sort of table stakes, right? Everyone is experiencing that. You have to anticipate this change and think about what the negative things are going to be that people say about it.

Talk a little about how you get leaders into that mindset of always having that extra chair in the room. Thinking about how employees, especially not the cheerleaders but the people who complain about everything, are going to react.

Nick Kalm (05:23)
Every employee base is a bell curve. You’ve got the ones that bleed company colors. You’ve got the people at the other extreme who believe the company can do no right. And then there’s that big persuadable middle.

Change is almost never viewed positively. Human nature tells people that change means something worse. If your boss says there’s going to be a change in your job responsibilities, nobody thinks it’s a promotion. They assume it’s something negative.

So leaders need to acknowledge that. They need to say, “I know change is uncomfortable. I know there’s uncertainty. I’ll give you the answers I can, and I’ll be honest about what I can’t.” And they need to show that employee impact was considered, not just customers, shareholders, or regulators.

That’s not the natural inclination of most organizations, which is why this is hard.

Phil Wilson (07:57)
You almost have to be thankful for the naysayers. They force you to think through how this impacts employees and why you made the decision anyway.

You have to explain why the decision was made. We don’t make decisions to make customers mad or employees mad. We make decisions because we believe it’s the right thing to do to run the business profitably and safely.

Nick Kalm (09:08)
Absolutely. Leaning into the why is critical.

It’s like a trial lawyer bringing up the negative fact first so they can’t be ambushed later. When you address it on your terms, it loses power.

The same thing applies in organizations. Admitting missteps builds trust. When leaders say, “We should have anticipated this better,” the credibility that creates is enormous.

Phil Wilson (11:37)
Chris Matthews calls that “hang a flag on your problems.” You bring it up first, frame it, and control the conversation instead of reacting.

Nick Kalm (12:41)
Exactly. If something might come out, put it out on your terms. Waiting just puts you in a defensive posture later.

Phil Wilson (13:38)
Let’s switch gears to things you didn’t anticipate. A safety incident, a regulatory change, something forced on you. What advice do you give in those situations?

Nick Kalm (14:28)
Move quickly and provide context. Show whether this is common across the industry. Use data. Use history.

If this is the first incident in 20 years, say that. If hundreds of organizations are affected by a regulatory change, say that. It helps people understand this isn’t unique to them.

Also, explain what the organization was doing to stay informed. Being active in trade associations, monitoring regulations, and doing what a reasonable organization should do.

Phil Wilson (17:18)
There are proactive things you can do even for surprises. The event may be unexpected, but the need to explain safety, policy, or how the business works isn’t. What should companies be doing ahead of time?

Nick Kalm (18:28)
Educate employees on how the business works. Most employees don’t understand it.

Healthcare employees don’t understand reimbursement. Manufacturing employees don’t understand supply chains or tariffs. When something outside the employer’s control happens, employees lack context.

Too many companies try to cram that education in during a crisis. That doesn’t work.

Phil Wilson (20:48)
And until people understand how the business makes money, they don’t care about costs. Revenue is not profit. Profit isn’t suitcases of cash. Profit keeps the business alive.

Nick Kalm (22:03)
Exactly. Capitalism has an image problem. Employers assume people understand how profits work. They don’t.

If you don’t explain it, don’t be surprised when employees react negatively when tough decisions happen.

Phil Wilson (24:14)
To wrap up, if you’re advising a company that hasn’t focused much on communications, where should they start?

Nick Kalm (24:56)
Two things.

First, educate employees on how the business works.

Second, understand your vulnerabilities. Know what critics will say. Use surveys and focus groups. Create channels for concerns.

If you do just those two things, you’ll be far ahead of most organizations.

Phil Wilson (25:55)
I’ll add one more. Don’t avoid the negative topic. Run toward it. Hang a flag on it. People want to hear from leadership.

Nick Kalm (26:57)
Absolutely.

Phil Wilson (27:30)
Nick, thanks again for joining us. This is a topic we could spend days on. If listeners want to go deeper, reach out to Nick and his team at Reputation Partners. Thanks for being back on the show.

Nick Kalm (28:12)
Always a pleasure, Phil. Thank you.

Phil Wilson (28:14)
Talk to you soon.