Truth 30. Listen to the grapevine

A few years back, the rumor mill was especially active at Coca-Cola’s Atlanta headquarters. The company was in the midst of a major reorganization that had included 5,200 layoffs worldwide earlier in the year. Rumors were saying that key executives were leaving, that there were ongoing turf wars among senior executives, and that more layoffs were pending. These rumors were beginning to seriously undermine morale at Coke. In an attempt to shut down the rumor mill, the company’s executive vice president tried to set things straight. He acknowledged that the company’s senior management hadn’t done a good enough job of telling employees about the changes that were taking place. He pledged “better and more frequent communication.”

As executives at Coke have learned, rumors can be a major distraction for employees. This doesn’t mean that management can ever eliminate the grapevine. But certain conditions tend to stimulate grapevine activity. And importantly, as executives at Coke did, management needs to monitor the grapevine and respond to the issues with which it’s concerned.