Seven Steps to Smoother Downsizing
DOWNSIZING
ere are seven steps to take to make a reduction in force or downsizing go
more smoothly. They come from Jackie Greaner and Charles Cates, CEO and
president, respectively, of EnterChange Inc.
1. Develop a careful, systematic transition plan. The plan should include: your
goals and objectives; programs and services you will provide to both departing
and remaining employees; and thorough consideration of how the plan will be
implemented and communicated within the organization. As part of this planning,
an organization needs to ask: "What is our purpose in undertaking this effort?
To reduce overhead? Cut expenses? Improve productivity? Improve departmental
responsiveness? Serve other agencies or departments better?"
2. Ensure that top managers understand the "visionary" role they must play. Top
managers must spearhead the downsizing plan if it is to be successful. They
must explain clearly where the organization is going and provide support to
middle-level managers who may have hands-on responsibility for implementing the
plan.
3. Involve your personnel or human resources department. Work closely with
human resources professionals to develop action plans and communication
strategies. "Human resources people are a strategic resource who can provide
the arms and legs for moving forward with your plans," says Greaner. "They're
also valuable as a sounding board in assessing the timing and practicality of
specific transition plans and strategies."
4. Plan a communication strategy. How do you plan to "roll out" your
downsizing plans? Will you downsize incrementally, or all at once? Be
careful about boxing yourself in with a one-time action.
5. Communicate as much as you can, as soon as you can. Although you may be
afraid of "overcommunicating" with employees, you need to keep in touch as RIF
plans progress to create a climate of trust and to squelch the rumor mill that
can imperil your plans.
6. Remember that you are changing the rules. RIFs or downsizings
fundamentally change the operating assumptions and organizational realities by
which everybody in the organization has always thought about his or her job,
career, peers and relationship with the organization itself. Career transition
and re-employment workshops for departing employees are critical, as are
team-building and change-management programs for those who remain. Indeed,
extra effort will be needed to forge common work values and organizational goals
in the new environment.
7. Communicate tough decisions in a human way. "Top managers sometimes suppose
that the 'troops' understand the rationale for actions being taken and that
someone else is thinking about the 'people issues' involved in downsizing, "
says Cates. "They often don't realize how important it is for them to be out
there in front explaining why it's happening."
"And don't just talk about the numbers, either," adds Greaner. "Talk about
people and how the organization wants to help them make successful transitions
to what comes next."
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