Downsizing a Business

Almost every company I have ever been invited to explore has suffered from over employment. Whether so top heavy bosses outnumber workers or where armies of employees have virtually nothing to do.

Downsizing is not merely to save wages but to cut away the dangers of “idle hands.” For companies in trouble it is not just the wages which cut into profit it is the “unworking” that over employment engenders.

At this restaurant are eight waitresses. There is no custom to justify eight. Four would be useful at certain times, where at others, two could adequately handle the work. The eight sit around and talk and argue, and patrons, seeing this, leave. As each of the waitresses has to be fed, those are eight meals the chef has to make. And there is only one chef.

At this accountancy firm there is a “chain of command” in which a worker reports to a Senior Worker who reports to a Supervisor who reports to…  All of these “staff” positions; what is the purpose? People are hired to perform work. They must know what work they are there to perform. An office manager can route work and whether it is a law firm or a data entry center, one manager can be kept occupied.

I have sat in on meetings which argued over the protocols of who complains to whom, and how the “chain of command” was breached or not breached. What is being produced during these meetings?

When workers are not fully employed, they fill their time with their social life. They spend hours on the phone, playing games on the computer, doing what they please. This idleness produces unworking habits which, at busy times will be extremely detrimental. When downsizing; start at the top. Assistant managers who act as megaphones can be replaced by megaphones. Everyone must have an actual job.

When you reach the floor keep your eyes open for telephone talkers, walkers, socialiser. Don’t be fooled by industrious appearing people; often they are playing games on the computer.

Do not attempt downsizing until you are so familiar with the business that you could manage it. You must know every department, what each person does. Sometimes, streamlining an area solves problems.

The mindset of a Troubleshooter on entry must be that each worker has to justify employment.