How To Downsize Your Company To Upsize Your Efficiency

Mar 4, 2013 by

The term “downsize” has been able to acquire an overall negative connotation in the world of business over the years.  This is primarily because of the fact that when the vast majority of employees hear that word in their offices, it is usually followed by information about a massive layoff, terminated employees or the dissolution of an entire department.

From the perspective of a business owner, however, downsizing can become an effective method towards upsizing and increasing the efficiency and productivity of the company overall.

How is this possible?

Downsizing is Not Just for the Employees

Just because a company may be downsizing in order to complete an organizational transformation, this does not necessarily mean that they are going to be furloughing or firing many employees.

Downsizing basically means that you are cutting back on different resources and other expenses that your company is currently held responsible for year after year. For instance, you may decide to downsize to a smaller office building which may save you a significant amount of money each year in overhead expenses.

Explore and Examine Other Areas Besides Your Staff

Therefore, the key would to focus on every other aspect of your business that can be downsized and eliminated from the equation first before you seriously consider making any drastic changes to your staff.

This will allow you to capitalize on a prime opportunity to grow your business in more important areas. For instance, the money that you can save from cutting back on overhead expenses can be reinvested into your business in more profitable areas.

Studies have shown that by reinvesting the money that you save from downsizing into the compensation plans and/or bonus structures made available to your employees, you will be able to increase productivity and efficiency.

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That will allow your company to experience even more success after the downsizing process and organizational transformation has been completed than it did beforehand.

Make the Time to Explain Your Full Plan of Action

One of the biggest mistakes that business managers and executives make when it comes to downsizing their companies is that they never fully explain the need for a downsizing or the benefits that can be enjoyed afterwards to their employees.

They may just refer to the downsizing during the conversation that they are having with the employees that did not make the cut, which can actually backfire and cause a hysterical panic within the workplace.

After you have determined the long-term benefits of your upcoming organizational transformation, the next best thing to do would be to find a way to share this information with your staff in order to make sure that everyone stays on the same page.

They will become even more engaged with their jobs and with your company, because they will feel honored that you would include them in such a discussion and would not feel as bad if they are one of the employees that needs to be laid off in order for the organizational transformation to achieve its target objective.

This article was written by Robert, a professional content writer that has truly enjoyed being able to write quality articles about such business-related topics as business management, organizational transformation and growth strategies for enterprises. As a personal hobby, he enjoys writing short stories and poetry in his spare time.