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Ladies and Gentlemen, I need not remind you that we face difficult times ahead. We will see significant cuts in budgets. And that will lead to massive job losses. Our normally-stoic staff, able to rise to the challenge, able to go the extra mile, will suffer greatly. Our promise that we will look after them will be broken. Many will not feel looked-after. Their commitment to public service will wane as they, rightly, try to find ways to manage their own lives. I expect you to rally the troops. Abandon your Blackberries all ye who enter here. This is not a time for e-mail but for eye contact, warm words and, above all, a physical presence. As leaders, you must lead. So, be present. Find ways into the office which enable you to talk to ordinary members of staff. Pass the time of day with them. Find out how they feel about things. Move the conversation beyond the banal and look for ways to make them feel you really care about their fate. Remember, appearances are all in these times. You will need the common touch. You will, no doubt, be using complex programme-driven approaches to deliver real savings. But leave such language behind. Let them hear no talk of deliverables, cashable savings, timelines, mandates, or even PIDS. This is a time for messages to focus on people, their contributions, and your sorrow at losing so many valued and valuable staff. Develop and test short speeches needed for particular occasions. When you lose valued members of staff, find out in advance what they have done over the past 10 years to help you achieve your council goals. Talk eloquently about what their colleagues would say about them. And do. And make the moment feel special. You will have to do this many times. But each time will matter as much as the one before. Keep your message consistent. We are in this together – you should say so. We would not be here but for the profligate and irresponsible behaviour of the banking classes. Say this too. These are not circumstances of our making but we will manage as best we can. Take no delight in change. Regret every step. Do not allow any of your staff to believe that old scores are being settled by new challenges. Remember at all times that eyes will be focused on you and your leadership team. You will well remember the First World War poster which said: ‘In times of war, to dress extravagantly is worse than bad form – it's unpatriotic.' It is as true today as it was then. If you do buy a new car – and I would urge you to wait – leave it at home. Do not dress as if you were heading to a SOLACE conference. Leave at home designer suits, twinkling jewellery, costly cufflinks and your Jimmy Choos. Dress inexpensively and act as if every penny mattered – to you personally, as well as to the council. Keep up a steady flow of communication. Share as much as you can as early as you can. Others will encourage a culture of secrecy. They will talk of risks to the council's reputation if bad news is to leak out. Your staff can all too readily be the last to know. Make sure they are the first. Morale will plummet as each newspaper headline tells them more than you ever would. It will damage productivity, your reputation and your chances of success. Bear in mind that you, and you alone, carry responsibility for the success of your change plans. Not all politicians will agree with your approach. Those who support you will be reluctant to publicly do so – cutting services is not a popular message. Those who oppose you will burn your effigy in the town square. But our end is clear – maintaining public service at all costs. So, you must prepare yourself for the worst. If sickness levels climb, be wary. If there are disputes which turn into strikes, be cautious. If the newspapers are filled with pictures of you climbing into luxury models or old snaps of your salubrious home, be fearful – forget pay rises – best to offer to take a pay cut. In such circumstances, I will expect you to do the right thing. None of us is as important as the service itself. You may well receive a call from me if things look bad. I will expect you to thank everyone for their efforts, to say that you are glad to have been a part of this public service, and to leave with no fuss, no package and good grace. It will be for the good of the service.

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WHITEHALL

A memo to chief executives

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