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August 27, 2009

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air-jordan-1

I think the decisions companies are making now about what to cut and how far are some of the hardest and most important they’ll ever make. It’s in part a question of how to scale down costs (which usually means the workforce) in synch with shrinking revenues and profits. But it’s also about how to the retain capability and build the strength that will enable you to succeed when the tough times are behind us. A knee-jerk reaction to cut costs regardless is a desperate move; hanging onto staff you can’t afford is a risky and possibly foolish one. Neither labor hoarding nor deep cuts are right or wrong in themselves, rather the challenge is how do you do what you must (stay profitable), while continuing to build the strength of your business and emerge from the recession as a more competitive player.

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