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Downsizing & Recovery – Don’t lose the benefits as well as the staff.

A major downsizing is often a necessary fact of business life. Whether due to financial constraints, new technology, work processes or the like, it is a time for re-balancing and re-focusing.

A time of concern for staff and management alike, there are actually two parallel projects running simultaneously - the downsizing and the recovery processes. However, the momentum and focus of the downsizing often overwhelms the critical early stages of the recovery. Who wants to hear about the future plans of the business at a time when they may be losing their jobs?

Downsizing happens for a purpose, and if well thought through, Boardroom strategist will have already figured out the post-downsizing scenario – a new approach to delivering key targets. On the ground, though, there is a fine balance between trying to create confidence in a ‘future’ message whilst dealing with the negative ‘present’ message. So what is the best investment?

Base one is to do the downsizing well, in a fair and transparent way, with clear decision making and communications. Management is under the spotlight, not just with those who may depart, but also with those who will stay. The old adage ‘treat someone how you would want to be treated’ is never truer and is a clear first step to recovery. Many businesses score an own goal at this early stage in their search for a quick fix.

Base two is planning the shortest route to staff exit – don’t prolong the agony. If there are many procedural hoops, see if they can be planned in the most efficient way possible. Make time to ensure this happens – it is an investment and a high priority.

Base three is to be pragmatic – don’t expect the last ounce of effort from departing staff right up to the end of their employment. Allow them to leave with dignity and as early as possible. Only retain those who are required to hand-over essential information. This investment allows both the business and the individuals (both staying and leaving) to move on as soon as possible.

Base four is engagement and communication with your retained staff, focusing on the future. Often seen negatively by staff if addressed too early whilst downsizing is proceeding, timing is critical. However, planning can be done behind the scenes in parallel with the downsizing to build the clear messages on the future and the impact on staff. Also, support your managers and leaders by briefing them and ensuring they give a consistent approach and message. The clarity of your approach and thinking is as important as the actual detail.

To help you implement your downsizing and recovery effectively, visit www.business-enlightenment.com . We can help you understand where you most need to focus your efforts through a simple but thorough on-line audit.

By Alan Garmonsway who is a Director and Co-Founder of Business Enlightenment.