Downsizing and Outsourcing LO3591

Mon, 30 Oct 1995 18:43:26 EST

A colleague has asked for some ideas of how to use the five disciplines
to deal with a major concern in his organization. Recently his
department suffered a combination "outsourcing" and consolidation that
resulted in layoffs as well as some reassignments of supervisory people
to non-supervisory positions. The department head - the General Custer
referred to in LO 2402 - had tried valiantly through the redesign his
department into work process teams to convince the government customer
(we are the primary contractor at a large federal government site) that
his department could, with less regulation and some restructuring,
reduce costs and operate cost effectively. Although his efforts
appeared successful, the customer chose to outsource anyway, perhaps
for reasons beyond cost effectiveness.

The current work environment is suffering from the obvious morale
problems. Key contributors are 1) the uncertainty of the future both
in employment and work assignment, 2) employees having to deal with the
perspective that their efforts to streamline and the resultant bottom
line improvements did not matter in the final decision, promoting a
feeling of helplessness in controlling their situation, 3) the negative
feelings and loss of self esteem of those reassigned from supervisory
jobs, and 4) the feelings and hesitancy of the remaining supervisory
personnel in how to effectively work with the reassigned people knowing
how they must feel.

The department manager really supports his people and has their trust.
He is open to any efforts that would help the people and I am he sure
would be open to suggestions from this list.

The question that might sum this up is "what is the best process to
begin the healing and for creating new, generative relationships and
personal mastery within this department ?" My colleague and I have
begun to discuss this and would appreciate any feedback, either on the
list or directly to me. Also, perhaps the question could be better

Thanks in advance.

Geof Fountain TFYY93A@Prodigy,com