Downsizing – A Dumb Change Management Strategy
Cost cutting by downsizing is a risky strategy. Even a small reduction in force “can unleash an exodus of valuable employees.” Here’s the really scary part. Companies that laid off half of one percent found that turnover rate was 13 percent. (Turnover in companies that didn’t downsize was 10.4 percent.)
The Academy of Management Journal report cited in Business Week. 4/21/08.
September 11th, 2009 at 3:17 pm
strategic change management…
Great post. My approach to strategic change management says the quality of the first five percent determines what happens in the rest of the process. This same principle applies to many situations….
February 18th, 2010 at 12:00 pm
sad but true, thanks for your comment