It’s true. Happens all the time, without forethought for investing in the future. The recommendation initially and usually comes from the financial person. The CFO, who looks at headcount as the easiest decision to make his ‘bottomline’ look better.
They start the myopics at the bottom of the food chain. You know the receptionists, the new engineer, the ones with less then a year, the consultants. Doesn’t really add much to the ‘bottom line’ frankly.
What companies fail in most cases to look at is their organizational structure, their strategies, the marketing, their ‘go-to-market’ stance, their value-add in new market opportunities. Product/service extensions. These initiatives take time, effort, and thought. They are not ‘myopic’. They add sense and sensibility to the equation of ‘downsizing’.
And one more point: companies rarely, initially look at the corner office for that productivity. Yes, the person with the window overlooking the parking lot. The team guy, the go-to person. Also, in many cases, the out-of-date, take-no-risk, fill out the forms, and let the day go by individual.
Myopic cutting and downsizing are not creative short-cuts to productivity improvement and profit enhancement. Anyone can do that. Yes, even the receptionist.
What makes a company special and the people who run it, is that they continue to shape future vision. They are strategic, and look at the long-term. The ‘cut and run’ group will always take the easiest and most immediate action to protect their own interest.
And who would want to work with them for any length of time?
Tom Peters wrote: "You cannot shrink your way to greatness".
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