I do hate it when business use phrases to hide actions in order to reduce the potential impact and effects and one that I find increasingly annoying is “Rightsizing”. This is partly because it’s so often used to replace more accurate descriptions such as Redundancy.

It was used in Management Today “UBS is far from being the only bank which has announced
job cuts recently – everyone from HSBC to Credit Suisse has been busy
‘rightsizing’ their workforces…The job cuts at UBS amount to over 5% of its total workforce “.

Now, I know that “Rightsizing” has been used for some years but surely it’s poor management to have “Wrongsized” in the first place (see Tony Miller descriptions below) but I doubt that it’s the management jobs that are about to be rightsized! You can imagine the  press release from UBS HR was at pains to seem to be “normalizing” the situation but is the term “Rightsizing” the correct one.
 
Thanks to Tony Miller  for giving a reasonable explanation so that we can all make up our own mind!:

Downsizing
Is simply reducing the number of reporting layers in the business to produce a better line of communication and efficiency…Downsizing is a stressful and risky business and should not be carried out by anyone who has not experienced this technique.

Rightsizing
Involves reducing the organisation by a small percentage. By doing this you can keep the organisation trim and in better condition. It can be achieved by a number of painless means such as:
Freezing recruitment
Releasing the long-term sick
Releasing poor performers

In announcing that Lloyds TSB are to shed 15,000 jobs over the next three years probably contained little surprise to most people. Indeed there will be many that will be quite pleased that some bankers are reaping what they sowed without realising that the middle management and back-room boys losing their jobs are not those who will be receiving big bonuses over the next three years.

Restructured teams have an increased chance of failure
My real concern is that five thousand job losses each year, for three years, will mean a vast number of teams being restructured. The problem with team restructure is that only 60% tend to deliver targets. That means that 40% of teams fail to deliver on expectations. That’s one big storm of disruption for Lloyds TSB to navigate.

Costs can be huge
The cost of such failure in lost opportunity terms can often amount to ten times the salary of the team and in banking circles that can be  huge! ( a team salary of £1million could produce a potential lost opportunity cost of £10m) However, when one’s focus on savings will be judged on salaries saved the actual costs of the restructure often get ignored.

That is until financial statistics reveal that further jobs have to be cut because the anticipated results haven’t been met!