RIGHTSIZING - BUILDING AND MAINTAINING STRATEGIC LEADERSHIP AND LONG-TERM COMPETITIVENESS

Although many companies see ''downsizing'' as a way of maintaining competitive advantage, large-scale staff reductions seldom help an organization achieve its hoped-for objectives. Basing their findings on extensive field interviews, the authors identify both ineffective and effective downsizing tactics. Voluntary early retirements, say the authors, as well as across-the-board layoffs, are particularly dangerous. Effective tactics start with a concerted effort to ''rightsize'' the organization in view of a long-term corporate identity. By protecting core competencies and by emphasizing teamwork, training, and leadership during reduction, the organization stands a better chance of achieving its goals.