Keith Cowan has written interesting commentary on experience with
conultants involved in downsizing exercises. A few weeks ago, I asked the
list if anybody could give me documented examples of organisations which
had undertaken downsizing and successfully implemented organisational
change which had positive outcomes at the same time. A couple of people
responded, including Bob Tomasco who sent some materials.
I have since undertaken as comprehensive review of the literature as
possible, as well as having the opportunity to look at the implications of
research which is underway in Australia and New Zealand (not surprisingly,
perhaps, downsizing is a big topic in this part of the world at the
present time).
A report has been prepared and is available if people would like to
contact me. However, to add to the ideas suggested by Keith, here are
some excerpts from the document.
Extract from Downsizing and Organsational Change (URCOT 1996)
There is some evidence that poorly handled organisational restructuring
can lead to an environment which is conducive to workplace violence (see
McCarthy et al 1995).
Gouillart and Kelly (1995) suggest a comprehensive approach that links
response to emotional issues with other strategies related to business
planning. The immediate operational issues might provide a useful
starting point for establishing this kind of perspective. In developing
their proposal, they emphasise the importance of recognising the
interdependence of the parts of the organisation; using a biological model
of corporate life, `holistic' rather than `organ by organ' approaches are
required ....
Directions
What are the implications of this material, fragmentary though it might
be? The following summary of the directions which seem to be most
fruitful to pursue is presented as a basis for further discussion and
development within organisations facing difficult circumstances.
1. Don't do it.
If at all possible, avoid downsizing. The skills, corporate memory,
knowledge of work processes and clients which are lost might be
irreplaceable.
2. If downsizing cannot be avoided, examine organisational
interrelationships carefully.
If the organisation is viewed in systemic terms, the question becomes one
of examining how changes in one part, or in part of one part, will affect
changes in other parts of the organisation....
3. Make information available.
This involves being able to communicate clearly why the action is
being taken....
4. Adopt participative processes.
Participative processes provide a means of drawing on the expertise of people
at all levels of the organisation to address difficult
circumstances....
5. Be clear about future business directions.
The environment for all organisations is now characterised by complexity
and changing relations of time and space.... It is important to engage in
dialogue which leads to agreement about defined goals and the strategies
expected to achieve those goals.
6. Don't prolong the pain.
A balance needs to be struck between providing an effective participative
process, and enabling information to be made available and received, and
ensuring that the organisation does not become paralysed....
7. Support those who are cut.
This includes practical resources for finding employment elsewhere, as
well as emotional support in dealing with the separation processes. ...
8. Support those around whom the future will be built.
This involves assistance in redesigning work processes, and possibly in
acquiring new skills and knowledges....
9. Capture the learning.
Mobilisation of effective organisational change appears to depend
increasingly on the capacity for learning and for transforming learning to
innovation...
Hope this helps !!
Bruce Wilson
Union Research Centre on Organisation and Technology
Level 1, 171 Latrobe Street
Melbourne.
Ph 613 9663 4555 Fax 613 9663 4443
Email: zbruce@minyos.its.rmit.edu.au
-- zbruce@minyos.its.rmit.edu.auLearning-org -- An Internet Dialog on Learning Organizations For info: <rkarash@karash.com> -or- <http://world.std.com/~lo/>