July 17, 2002	Volume 2, Issue 29
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Double Your Downsizing Damage

by Rick Brenner

Some people believe that senior management is actually trying to hurt their company by downsizing. If they are they're doing a pretty bad job of it. Here's a handy checklist for evaluating the performance of your company's downsizers.

ately, many companies are in deep financial doo-doo. Some have addressed this issue by downsizing. Basically, they fire a lot of people. Often this tactic is so harmful to the company that customers, shareholders, and employees wonder whether management is actually trying to hurt the company.

Is that really possible? To evaluate the performance of your company's Chief Downsizing Officer (CDO), use this handy checklist for executives who really want to ruin their companies in an effective manner.

Be sneaky

Don't let on that you're about to fire 20% of your employees. Giving people a heads up just lets them avoid major purchases and warn their families.

Maintain executive compensation

Don't reduce executive compensation at all. If possible, increase it. This builds resentment among employees, insecurity among customers, and fury among shareholders.

Don't downsize enough

Maintaining or increasing
executive compensation
during a time of cost
reduction and layoffs
is a great way to
build resentment

Make sure that you'll have to downsize again. Doing it twice in quick succession puts everyone on edge permanently.

Announce rolling layoffs

Tell everyone you plan monthly reductions for the foreseeable future, because rolling layoffs could reduce the total number of people affected, assuming conditions improve. But you know what will really happen — people will believe that every month is their last.

Schedule the announcement for December 24th

In Europe, Australia, and the Americas, the optimum time for downsizing announcements is just before Christmas. That way, people will already have spent more money than they would have if only they had known. No point hurting the economy too.

Don't solicit volunteers

Some people actually want to leave — they would prefer a layoff to quitting. Don't lay off people who want to leave, while you keep people who want to stay. You can do more damage if you lay off people who want to stay, while you keep people who want to leave.

Offer early retirement

Early retirement programs offer a relatively safe way to jettison your most valuable and experienced people first, without the legal risks of laying somebody off one week before they become eligible for retirement.

Don't close unprofitable operations

Keep them running. They'll probably lose even more money with only 80% of their staff. Instead, close or spin off any profitable operations, assuming you have any.

Don't cancel any initiatives

Internal initiatives, especially those with only long-term benefits, should remain at high priority. If you must cancel something, cancel anything that might immediately cut expenses or shorten the sales cycle.

Hint that there might be more

In media interviews, when asked if these cuts are the last, squirm. This signals the employees who have alternatives — who are, of course, the most difficult to replace — to get moving on job searches.

How well executed is your company's downsizing program? 1-3: ineffective; 4-7 not so good; 8-10: don't laugh — you might be next.  Top    Next Issue

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Person-to-Person Communication for Project Managers

When we talk, listen, send or read emails, read or write memos, or when we leave or listen to voice mail messages, we're communicating person-to-person. And whenever we communicate person-to-person, we risk being misunderstood, offending others, feeling hurt, and being confused. There are so many ways for things to go wrong that we could never learn how to fix all the problems. A more effective approach avoids problems altogether, or at least minimizes their occurrence. In this very interactive program you'll learn a model of inter-personal communications that can help you stay out of the ditch. In those moments of intense involvement, when we're most likely to slip, you'll have a new tool to use to keep things constructive. Read more about this program. Here are some upcoming dates for this program:

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• Columbia, Missouri: May 17, Full-Day Workshop, Mid Missouri Chapter of the Project Management Institute.
   

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Most people now work in environments that can best be characterized as fluid, because they're subject to continual change. We never know what's coming next. In such environments, managing — teams, projects, groups, departments, or the enterprise — often entails moving from surprise to surprise while somehow staying almost on track. It's a nerve-wracking existence. This program provides numerous tools that help project managers who work in fluid environments. Read more about this program. Here's an upcoming date for this program:

• Columbia, Missouri: May 17, Monthly Meeting, Mid Missouri Chapter of the Project Management Institute.
   

The Politics of Meetings for People Who Hate Politics

There's a lot more to running an effective meeting than having the right room, the right equipment, and the right people. With meetings, the whole really is more than the sum of its parts. How the parts interact with each other and with external elements is as important as the parts themselves. And those interactions are the essence of politics for meetings. This program explores techniques for leading meetings that are based on understanding political interactions, and using that knowledge effectively to meet organizational goals. Read more about this program. Here's an upcoming date for this program:

• Rochester, New York: May 24, Professional Development Day, Rochester Chapter of the Project Management Institute.