I agree that downsizing is painful. It's too often the knee-jerk reaction to an economic downturn. I've found that the impact on people is similar to death and dying [1]:
- denial - this is not going to impact my department.
- anger - after all the years I gave to this company, now this!
- bargaining - can you transfer me to another group or project?
- depression - What am I going to do? I have a mortgage to pay.
- acceptance - I'm signing up for the out-placement and resume review process.
As a manager, you may need to help people through this process, or at least provide someone who can.
In addition to the people costs, there are economic costs and process considerations as well. Having managed or been through 4 downsizings and restructuring, here are the Critical Success Factors (CSF's) I believe you need to keep in mind:
- Adequate funding for the one-time transition costs
- People and consulting resources to execute the plan and keep the engine room and projects running
- Adequate time to execute (3-4 months)
- Management commitment, especially to say no to new IT demands during the transition
- Lead with value-added components as key IT improvement modes for the new organization
- Give people choices. Redundancy-only is demoralizing not only for those who leave, but also for those who stay
- Speed of announcements and communications plan. Any downsizing needs to be announced frankly, quickly, and then stated as finished
Finally, get an advisor, preferably a manager who has been through this before, someone you can lean on and get advice during the process. |