Restructuring and Redundancy: When is Downsizing not the right strategy?
March 7, 2009 by Di
Filed under Downsizing, Redundancies, Redundancy, change, organisational restructuring
At first glance, corporate downsizing could appear to be a logical pathway to improved profitability during poor economic conditions. Dr Wayne Casio in his 2002 book, “Responsible Restructuring” cites research which offers some surprising results to the contrary. Drawn from an 18-year study of leading companies, this research indicates that the most profitable companies were those where employee turnover remained less than 5% in any particular year and those which were on a path of growth. In stark contrast, organisations that were downsizing appeared at the bottom of the profitability bucket. So, downsizing as a strategy in isolation may not yield the profitability outcomes businesses may hope for.
My name is Di Worrall, and I'm an author, corporate change specialist and executive coach. I wrote the new release book - A Climate for Change - How to ride the wave of change into the 21st Century and create a more sustainable and prosperous future for you and your business. You might be a business leader or you might be in the business of coaching, consulting or training business leaders. I created this blog as a companion to the book and to help you and your clients navigate the current climate of change and uncertainty, and lay the foundations for a more sustainable future.
