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.