December 2010

How to Make the Most of Your Incredible Shrinking Workforce

Job cuts. Headcount reductions. Organizational streamlining. Phrase it any way you’d like, the bottom line is this – you’ve got fewer people tackling just as much work - and quite possibly more.

In today’s tough economic climate, businesses are forced to get leaner than ever before. This frequently translates to cutting back on human capital in the face of intense financial pressures. What’s the immediate impact? Well, you may just find that your team of 40 is now a team of 30 or that your department of 1800 has suddenly shrunk by the hundreds.

Is this sort of forced streamlining always such a bad thing? Do fewer workers necessarily equal a less effective workforce? Not necessarily. There are absolutely circumstances in which leaner is better. But trimming your workforce is never an easy or painless task. Here are some watch outs and tips to help you manage the process and make the most of your newly svelte organization.

Assess your talent. Who are the star players on your team? Who’s got the technical expertise, global experience, people leadership, strategic vision or political savvy you absolutely must have in your organization? Who, on the other hand, is creating undue churn and weighing the team down? Who’s simply coasting along?

Make sure you’ve got the right people in the right roles. Once you’ve identified your top talent, make sure you’ve got people sitting where they can do the greatest good. Are your strategic thinkers in roles that allow them to make the greatest contribution to your organization’s current and future positioning? Are your strongest leaders situated where they can effectively develop, empower, motivate and inspire the entire organization? Who must be given broader, more visible, higher impact roles?

Develop, develop, develop. As you move people around within the organization, you’ll have to help them develop the skills, competencies and experiences required for mastering their new roles and responsibilities. Make sure you’re providing plenty of high impact developmental opportunities to ensure a smooth and successful transition.

Anticipate the emotional fallout. Because there will be fallout, no doubt about it. People will be anxious about keeping their jobs in the face of past, current and/or anticipated future job cuts. They will be sad and angry to see their colleagues get ousted. They will feel overwhelmed by the additional responsibilities and demands with which they are confronted. Be sure to acknowledge and validate the real human cost of workforce reductions. Don’t sugarcoat or dismiss the impact. Instead, be available to listen, empathize and provide context and hope.

Highlight the positive. While you aren’t going to ignore the very real costs of streamlining (see above), you certainly ought to develop and share an honest vision of how these organizational changes will put your team, department and organization in a better place. Show your people how these changes will make the organization stronger, more efficient, more profitable and better positioned in the marketplace. Help them see the opportunity for professional growth. And don’t forget to reassure them that you will be there for them, providing the support they need to meet the challenges and opportunities that lie ahead.

Don’t let workforce reductions wreak havoc on your team, department or organization. With some thoughtful planning and careful implementation, you will not only survive the loss - but you just may emerge a stronger, if leaner, organization than you are today.

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