In this fourth episode in a series of 8, we are going to talk about the strategy and overall mentality of no blanket cuts when it comes to executing a successful reorganization. Remember, executing a restructure isn’t a one-size-fits-all process within your organization.
You see, there are some weak leaders when it comes to executing a reorganization. As we have already said, business decisions are hard. And making sweeping changes in a business can be even harder. So some people will say, we need to cut 25% of our expenses. I don’t want to be unfair, or I don’t want it to take forever to figure out the solution, I am just going to cut 25% across every team and every department.
That is a receipt for disaster. Remember the entire point of this reorganization is to feed the area of the business that is doing well and eliminate those that are not. In the same way, you will keep the talent that is a top talent and eliminate the underperformers. To do that, you can’t take the one-size-fits-all approach when you decide on your plan.
Some teams will have more underperformance to eliminate. Some teams will have none. Some teams will be able to take a 50% cut, some teams will not be able to make any cuts because of their talent and because of their contributions to the business. The key here is to be in the right frame of mind as you make decisions regarding the types of cuts you will make. You must focus on being precise.
The goal is to hit your overall 25% reduction in a way that keeps your top talent and eliminates the underperforming parts of the business. This could also mean eliminating total teams and moving the remaining top talent into a team that needs additional support.