Blog Post: Downsizing

1) Hire an Outside Consultant - Note that I said "outside," not inside consultant. Companies need an unbiased, objective perspective to look at your unique situation with every intention to recessitate it. It's very difficult for an employee of the company to make decisions without taking their own personal loyalties into consideration. You can hire a consultant to analyze and put together a game plan in less than a month's time.    

2) Relaunch Vision - Once you have decided to let some employees go, you need to formulate a vision immediately. A vision will determine whether your company goes into a depressed state or makes a commitment to move forward. It is the executive's job to not only create a vision, but communicate it over and over to the entire organization. People need to know the future direction, where they fit into the bigger picture and what to do next. A well written vision can rally the troops and push momentum in the right direction. 

3) Build Trust - When the dust has settled from the recent transition, there is uncertainty and fear in the air. We tend to focus on who is gone, instead of setting our sights on those who remain. Along with vision, managers must instill trust within employees by increasing their own commitment level and support for them. Left unmanaged, company morale will take a downward spiral. That consultant that you initially hired should be meeting with each employee if possible reassuring their job security and redifining their role. This process will take time, but the faster you tend to it, the better the company will be in the long run.  

Change within a company is never easy. During transition, leaders must learn to maximize their resources and reinvent their company. Downsizing has an emotional effect on everyone, that's why I suggest hiring an outside consultant to help with the process. 90% of businesses will experience this in the next 2 years. Will you be ready to lead your organization through downsizing?