In Vol 8 No1, of the Journal of Management Research, Franco Gandolfi explores the lessons that we can learn, if indeed we do learn, from downsizing. In many ways this research is a bit like those obscure results that some even more obscure scientist discovers. Millions of dollars are spent trying to find out why dogs bark and with great applause from their peers the obscure scientist announces its because they are dogs! I guess the point here is that we know that downsizing doesn't always provide the desired results and that the organisational success that was visioned can turn into "profound negative consequences for all constituencies". I didn't really need Franco to spend his time and money on research to confirm that for me.
The reason being...and this is why I doubt we do learn...is that over 15 years ago the phrase 'Corporate Anorexia' was used to define the strategy (well lets call it a strategy!) of throwing away the baby with the bath water when companies in the mid nineties were retrenching executive after executive and all of their corporate knowledge went with them.
Of course his was just prior to the next fad which was Knowledge Management! Funny.
Anyway lets give Franco a platform. He suggests four main lessons can be taken from this often ill advised corporate re organisation:
1. Prepare well (oh really?)
2. Provide assistance to survivors (sounds like the aftermath of a Tsunami)
3. Have a longer term plan to manage dysfunctional behaviours (what sort of nut house corporations has he worked in?)
4. Count your costs because downsizing can generate costs which are underestimated. (Clever lad this Franco!)
So there you go. Don't say you haven't been warned!
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