Lately, 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
during a time of cost
reduction and layoffs
is a great way to
- 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.
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More articles on Personal, Team, and Organizational Effectiveness:
- Let Me Finish, Please
- We use meetings to exchange information and to explore complex issues. In open discussion, we tend to
interrupt each other. Interruptions can be disruptive, distracting, funny, essential, and frustratingly
common. What can we do to limit interruptions without depriving ourselves of their benefits?
- We Are All People
- When a team works to solve a problem, it is the people of that team who do the work. Remembering that
we're all people — and all different people — is an important key to success.
- Virtual Presentations
- Modern team efforts almost certainly involve teleconferences, and many teleconferences include presentations,
often augmented with video or graphics. Delivering these virtual presentations effectively requires
an approach tailored to the medium.
- Management Debt: I
- Management debt, like technical debt, arises when we choose paths — usually the lowest-cost paths
— that lead to recurring costs that are typically higher than alternatives. Why do we take on
management debt? How can we pay it down?
- How We Waste Time: II
- We're all pretty good at wasting time. We're also fairly certain we know when we're doing it. But we're
much better at it than we know. Here's Part II of a little catalog of time wasters, emphasizing those
that are outside — or mostly outside — our awareness.
Forthcoming issues of Point Lookout
- Coming December 20: Conceptual Mondegreens
- When we disagree about abstractions, such as a problem solution, or a competitor's strategy, the cause can often be misunderstanding the abstraction. That misunderstanding can be a conceptual mondegreen. Available here and by RSS on December 20.
- And on December 27: On Assigning Responsibility for Creating Trouble
- When we assign responsibility for troubles that bedevil us, we often make mistakes. We can be misled by language, stereotypes, and the assumptions we make about others. Available here and by RSS on December 27.
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- Person-to-Person Communications: Models and Applications
- 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 we'll explain — and show you how to use —
a model of inter-personal communications that can help you stay out of the ditch. We'll place particular
emphasis on a very tricky situation — expressing your personal power. 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's a date for this
- Embassy Suites by Hilton Jacksonville Baymeadows, 9300 Baymeadows
Road, Jacksonville, Florida, 32256, USA: January 15, 2018,
Monthly Meeting, Northeast Florida Chapter of the Project Management Institute. Register now.
- Embassy Suites by Hilton Jacksonville Baymeadows, 9300 Baymeadows Road, Jacksonville, Florida, 32256, USA: January 15, 2018, Monthly Meeting, Northeast Florida Chapter of the Project Management Institute. Register now.
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- Most of what we know about managing projects is useful and effective, but some of what we know "just ain't so." Identifying the fallacies of project management reduces risk and enhances your ability to complete projects successfully. Even more important, avoiding these traps can demonstrate the value and power of the project management profession in general, and your personal capabilities in particular. In this program we describe ten of these beliefs. There are almost certainly many more, but these ten are a good start. We'll explore the situations where these fallacies are most likely to expose projects to risk, and suggest techniques for avoiding them. Read more about this program. Here's a date for this program:
- The Power Affect: How We Express Our Personal Power
- Many people who possess real organizational power have a characteristic demeanor. It's the way they project their presence. I call this the power affect. Some people — call them power pretenders — adopt the power affect well before they attain significant organizational power. Unfortunately for their colleagues, and for their organizations, power pretenders can attain organizational power out of proportion to their merit or abilities. Understanding the power affect is therefore important for anyone who aims to attain power, or anyone who works with power pretenders. Read more about this program.
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