From time to time leadership teams are faced with a major strategic decision to reduce and redirect dollars and human resources to meet a major downturn in the marketplace. Let's take the scenario where they don't want to let staff go, nor do they want to shift their services away from what they know what works and what made them successful. Revenue is dwindling fast and if they don’t do something soon they know they will be attending one of those dreaded meetings with their banker.
If you are in this position it is time to take a surgeon’s look at all your policies, processes and procedures. Engage your key management personnel in finding ways to do more with less. Your task is to map out everything and measure it against your overall strategic direction. In today’s parlance this would be akin to LEAN, - when we did this we called it "Finding Efficiency." Your overall strategy is to find the savings to weather the storm without terminating employees. One way to accomplish this is to follow a rigorous decision-making process with the following steps:
Finally, make sure that the decisions you make accomplish the results you intended. So evaluate the results on a quarterly basis and “tweak” the decision to meet new conditions as they arise. Here is what I found when companies did this: the economic storm was weathered and the company moved ahead with an improved bottom line which allowed them to keep their valuable people and improve services to their customers in the long term.
From the archives, Fontanie Learning Solutions
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