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n How can we make it clear to all that we have considered every
alternative before engaging in staff reductions?
n What should senior management do to demonstrate that they are
really sharing the “pain”?
n What should we do to show that our policy for reducing staff is
fair?
n How can we avoid the idiotic approach of “last in first out”, thus
losing some of our most necessary, expensively recruited people?
mini case study
A client company had every reason to downsize. The economic cycle was in decline.
Their sector was hit hard. They had, through sloppy management in the past,
developed a top-heavy, grossly overstaffed organization with much duplication of
effort and a massively bureaucratic structure. They had never heard of either the
Auschwitz syndrome or of corporate Alzheimer’s, but they expected trouble and asked
for help even if it was no more practical than having consultants in the business on
whom they could pin any blame for the inevitable.
We were able to help. In outline what we did was as follows.
We identified three distinct categories of leavers with different needs.
n Some would be happy to take the “package” and retire. They would need
some advice ranging from investment through to ways of filling their time to
“keep out from under their partner’s feet”.
n Some would need to find another job as quickly as possible. They would need
help with job-hunting strategies.
n The remainder would look upon this as an opportunity to start their own
businesses. They would need help with identifying and applying their key
strengths, business planning and marketing.
n We designed and applied psychometric tests to enable people to reconsider the
groups that they had put themselves in and backed this up with individual
counselling where requested. For example, it was important that those who
had opted for an entrepreneurial new career had the strength that it takes to
succeed. Our role in ensuring that there were no feelings of guilt among
survivors necessitated a “no failure” approach.
n We designed and conducted training in essential skills and knowledge relevant
to each group.
n We organized and held internal recruitment fairs and gave free business
consultancy to the start-ups.
n Finally, we trained survivors and leavers together in essential influencing and
sales skills on the grounds that entrepreneurs need to sell their products or
services, job hunters need to sell themselves and employees need state of the
art influencing skills so that their valuable ideas are not lost.
60 Key management questions