Downsizing Study LO6209

Jeffrey Rocchio (
24 Mar 96 19:48:49 EST

Replying to LO6162 --

Replying to: LO6162, Downsizing Study

>What I'm looking for is information on a story I heard on "Market Place"
a business oriented radio program on PRI.

I can't help you there, except that they probably have an internet
E-Mail address you could try. Unfortunally I don't know what it is.

[Host's Note: "Market Place" is ...your host]

>The reporter cited an unnamed study that found that simply laying people
off did not make the corporation more profitable.

I can't help but comment on this. It is my belief that "downsizing" can
have two goals: 1) Cost reduction or 2) Speed to Market (by reducing
layers & complexity).
To achieve either (or both) requires the company to _also_ reengineer
it's business processes. The company must have a clear vision of which
goal it is trying to achieve with the downsizing. If it lays people off
without doing the process reengineering than it must either get more work
out of the remaining staff, reduce output, reduce quality or re-hire staff
after it figures out things aren't working.
Some companys understand this, and execute well. Sad to say most
companies (in my opinion) are really pretty dumb. Lemming-like they just
follow the hot trend, in this case "downsizing," without really
understanding the dynamics at work. Other's understand the dynamics OK,
but are simply unable to execute the reengineering beyond the layoff part.
Gotta have the capability to do both well.

jeff rocchio

(I am also new to this mail list. I am a technology strategist for a)
(regional bank holding company in Ohio. )


Jeffrey Rocchio <>

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