Posted on Mar 13th 2009 by Pattie Vargas.
I recently wrote a blog for BizSanDiego (my favorite local mag, by the way) where I proposed that downsizing could be the BIGGEST mistake a company could make. How so? If there isn’t some careful planning and forethought given to it.
Every time the economy goes into an adjustment period, individuals and organizations have to adjust, too. We all have to tighten our belts, cut costs and rethink the way we do things. Too often in companies, though, in trying to reach a desirable bottom line number, we cut costs in the wrong areas and end up crippling the business. Here’s a true story:
A local company made sweeping personnel cuts across the organization. They treated the furloughed employees with dignity and care and the exit was as graceful as possible, however they made one significant error. They had not fully reviewed the assigned tasks of these employees to ensure there was backup support once they were gone. About 60 days later, it came to light that critical quarterly sales reports were not being generated and the remote salesforce was without meaningful, relevant data. You guessed it – the database engineer in charge of that data process had been let go along with the sales assistant that compiled and produced the reports. Two seemingly unrelated individuals whose absence sent the company into a mad scramble to figure out how to fill the gap. They ended up offering both former employees a contract to come back and train others on how to do their job – and only one of them was willing to do so.
I recommend a process called OPSthat utilizes Optimization, Performance and Strategy to help organizations achieve their desired result - to streamline costs without impeding business continuity. In these difficult times, considering the big picture will be your best bet.
Posted on Mar 9th 2009 by Pattie Vargas.
Welcome to my blog. I know, I know, why in the world would anyone want to read yet another blog …. well, here’s why. I’m a gud riter. No seriously, I’ll not inundate you with a daily update of my comings and goings. At best, I’ll write once a month – maybe every few weeks. And my topics are usually centered around the workplace – what’s working, what isn’t, and what we can reasonably do about it.
Here’s what’s on my mind today. I heard an essay on NPR last week during the “This I Believe” segment. It was titled “Work is a Blessing” and the writer was talking about the lessons he learned from his father and grandfather about the virtues of hard work and self-support. I found it very inspiring and so in line with my own thinking.
As I continue to pour though the stimulus package (http://appropriations.house.gov/pdf/PressSummary01-15-09.pdf) I find myself becoming more concerned. You see, I truly believe that people are better than we give them credit for. I don’t think most Americans need a bailout plan. I don’t believe the government needs to take care of me. I believe that, left to our own devices, we are brilliant – talented, hard-working, able to address serious issues and hardships. Somewhere along the way, the government has become too interested in MY business.
What does this have to do with business? If you can’t run your business like you would if the money was coming directly out of your pocket – then step aside and let those more responsible than you have a hand at it. You simply cannot spend more than you make. (Hmmm… that goes for the government, too.) Didn’t we learn this as kids? Or, at least, that first hard lesson as young adults when you realized credit had to be paid back????
We are better than this. But with a “stimulus” bailout like this, we’ll not find out anytime soon.
Today’s rant has come to an end. The next one will be more focused, I promise.
