Re Organize, Re Structure, Re Engineer – rethink please !

No sector is seems is not effected by the current economic downturn, recession or crisis – you choose the term you dislike most.  However the rush to reduce, re-size and remodel is to me a symptom of panic and pressure to act rather than the product of rational thought and considered action. Big  corporate have the pressure of the shareholder to think about so need to make a profit at all costs – what is not so obvious to some is that their shareholder are in many cases their employees pension funds so meeting one criteria for success fails another.

What should we do as a alternative ? because we all know criticism is easy but generating alternatives is not.  Well I don’t know many organizations that hire dumb people out of choice – even the White House has got that one now .  Given the scale of the challenge, given the limited off the shelf options for a business in recession, why not take some risks – more risk with the people you have ’s  ideas.

Take the scenario of a small business who employee 40- 50 people in distribution and logistics.  When there is less work and costs of employment are constant the option off the shelf is to reduce the staff. Lower staff number to match the reduction in work available and match the reduced cost base.  Clear and logical and expected from the management.  So lets say 10 people loose their jobs to meet the downturn, harsh but fair.  Or is it ! What would happen if the same 40 – 50 people where given the task of income generation, cost reduction, business remodeling, sales generation,  business marketing, asset reuse, space leasing, alternative income raising and growth rather than death by a thousand cuts.  I think they might as a collective with the right leadership generate ideas and plans and product and ways of using their existing asset that the management , because of their training, would not see in a million years.

Is this the rant of a delusional mind  – possibly but if you look for them ( and I do) there are examples of businesses doing remarkable things ( from the ideas of their workforce) when the business is under pressure.  If you want to read about some incredible employee ideas for success read Maverick, by Ricardo Semler.  You will see quite quickly that  re organizing, re structuring, re engineering are the reactions of an anorexic mind – feed it with ideas from your people and grow healthy as an organization.