LO and Big Layoffs LO5667

Virginia I. Shafer (vshafer@AZStarNet.com)
Thu, 15 Feb 1996 21:25:27 -0700

Replying to LO5572 --


You were commenting on the "Corporate Anorexia" article, (which I haven't
taken the opportuniyt to read, if it matters) and offered:

>In 1988, before downsizing was known, Hayes, Wheelwright and Clarke (3
>Harvard Professors) wrote in their book, _Dyanmic Manufacturing_ that
>quite often the most profitable period a company experiences is the one
>just before they go out of business. Downsizing is a no-brainer. Anyone
>can boost profits by cutting out R&D, training, education, improvement,
>etc. without any short-term implications (except a boost in profit).
>What are the implications down the road? After you've downsized, and
>realized improved profits, what will the CEO do for his next trick to
>increase profits?

In my opinion, the answer to your last question has been, move on to the
next corporation while riding high on the allusion of success. Wonder if
anyone's done a study?

Ginger Shafer
The Leadership Dimension
"Bringing Leadership to Life"

vshafer@AZStarNet.com (Virginia I. Shafer)

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