Beware the pitfalls of downsizing, restructuring and employee redundancy
January 31, 2009 by Di
Filed under change leadership, change management, leadership, redundancy, organisational restructuring
The last economic downturn to affect Australia saw a widespread cut back in apprentice training. While the effects weren’t experienced immediately, the absence of new talent entering the workforce on such a large scale meant that it was nearly 10 years before Australia returned to the same level of technical skill it enjoyed prior to the downturn. Arguably, the detrimental impact of the “solution” turned out to be far more serious to the country than the initial problem. This is just one example of the potentially harmful downstream consequences of downsizing and cutbacks that business is pursuing in the current economic climate.
Being mindful of the pitfalls of large scale downsizing and employee redundancy was the clear message that Heather Ridout, Chairman of the Australian Industry Group gave to business in a recent 7.30 Report Interview. Heather is not a lone voice in the wilderness on this topic. In the wake of weekly announcements that big business is shedding staff in mammoth proportions, other business and political leaders are joining a growing voice around the world warning of the consequences of these knee-jerk reactions to sustain short-term business viability.
Welcome to this on-line forum for leaders of change. My name is Di Worrall, and I help business leaders with the skills and confidence to make change happen for themselves, their career and their business. As an author, organisational change specialist and executive coach, I work with leaders to create a clear path through change and uncertainty; build their leadership skills and confidence; and create systems for lasting change and a more prosperous and sustainable future. For regular updates on our best leadership and change articles, you can subscribe to our fortnightly ezine below.
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