HPMD Bullet: Downsizing Objectives

HPMD Bullets

BULLET #42
DOWNSIZING OBJECTIVES

I've reviewed recent literature on corporate downsizing, and distilled the following ten goals which I recommend to you:

Refocus the corporate mission and goals. The people need to know where the company is now going, at a minimum in the near-term (6 months), preferably over a longer horizon (next fiscal year). The question to answer: where will the company be and what will it look like in the foreseeable future.
Gain the commitment of the surviving management group. Ensure department managers are signed up for the refocused mission.
Provide a succinct, to-the-point rationale for the downsizing. All employees, both remaining and exiting, will need to know this.
Plan the downsizing process thoroughly. It needs to be 100% finalized in advance of the announcement date.
Communicate the refocused strategy frequently. This should occur in more frequent company meetings, bulletins, and department meetings led by the most Senior Managers.
Increase access to management. Have all managers schedule more meetings and reiterate an open door policy to help employees through this process.
Have an outplacement plan. This is not simply a severance benefit, but an important event for remaining employees, indicating that the company still cares about people.
Increase the freedom and authority of managers, supervisors and staff. As the workload and responsibilities increase for the remaining employees, it is important that they have more say in how it gets done.
Decrease bureaucracy, paperwork, and reporting. This is related to #8. Since there are less people to produce the same amount of work, the company needs to identify projects and tasks that can be eliminated so the most important functions get done.
Increase motivation through creative incentives and training. Since career paths are now reduced or eliminated, variable compensation awards and job enrichment programs help keep superstars motivated and from leaving the company.

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