Should you honour the decisions of previous leadership?

Last year employees at California-based insurer Farmers Group were told they could work remotely on a permanent basis. Barely a year later, the company’s new CEO, Raul Vargas, completely reversed the policy, calling everyone back to the office at least three days a week. 

This is just one example of how any manager starting a new role can expect to face some big decisions. 

The reversal faced significant backlash, not least from those employees who had made major life changes as a result of the initial policy – selling their homes and moving to different US states. 

Vargas insists the reversal was to improve “collaboration, creativity and innovation” – but as a leadership decision affecting nearly 60% of the workforce, it could have significant implications on employee engagement, morale and brand reputation.

It’s a cautionary tale for any new leader or manager considering making radical changes to previous policy. It also brings up a question about whether incoming managers and leaders should honour to the decisions of previous leadership – a situation that Dr Victoria Carr CMgr MCMI knows all too well.