A TRANSPARENT LEADER IN UNCERTAIN TIMES

The weeks that followed the tragedies of September 11 were frantic for Andavo employees. The airlines were canceling most flights, and because the airlines’ telephone lines were jammed, Andavo became their “mouthpiece,” fielding client questions about the location of their executives and how to get them home. Andavo offered full refunds, including all fees that are normally nonrefundable, and did not charge for ticket refunds. “It seemed the right thing to do,” Rivers said. Yet doing so would cost Rivers dearly.

At the end of a 2-week blur was what Rivers now refers to as “the moment in the kitchen.” In the employee break room, Andavo’s controller informed Rivers that there was more money going out the door than coming in. At the current rate, Andavo would have to close its doors by the end of the year. “The future flashed in front of me,” Rivers recalled. “If we were losing that much money, the obvious solution was massive layoffs. But there was a voice inside me saying there had to be another way.” After a lot of thought and consideration, Rivers decided how to go forward.

She Was Overwhelmingly Honest

A week after the conversation with her controller in the kitchen, Rivers shared the bleak financial picture with all her employees. Most were gathered in Andavo’s conference room, and others were listening via a telephone conference. Rivers told them that in order to survive even for the next couple of months, more than a third of them would need to be laid off. Yet, she added, she really did not want to see that happen. The only other way, Rivers explained, was to creep along with deep cuts in expenses.

She Asked for Their Feedback

“ Help me make this decision,” Rivers told Andavo employees. While employees huddled in groups and began looking at cash flow, Rivers left for the airport, headed for the San Francisco office. When she landed in California, she checked her voice mail and received a message from her employees: They wanted to stay, and to do so, they would take a 10 percent pay cut, slash expenses, and work like hell. While Andavo employees took these kinds of measures in trying to make things work, Rivers would not lay off anyone. Her promise would be a hard one to keep.

She Remained Composed

Over the weeks that followed, Rivers kept a calm presence, setting the pace and keeping everyone focused on the plan. “She’s a very real person. She shows that she understands what people are going through, and she shows her emotions, but she does so in a calm way that doesn’t get everyone panicked,” one employee said.

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