It’s inevitable that as companies such as Barclays, Lloyds TSB, Marks & Spencer and even Tesco suffer reduced profits they are developing a strategy that reduces costs by reducing staff.
 
Such companies then create smaller working teams or integrate the remaining staff into other departments together with their responsibilities.

There is a hidden downside with this strategy.That is that often there isn’t enough time, or motivation due to a sense of emergency, to integrate the new team properly so that they are capable of being as productive as they might be.

Our research, over nine years, into individual and team productivity following the integration of new people shows that only 60% of such changes deliver the results that were anticipated.

Poor communication, lack of understanding of team results and changes in management style all contribute to the potential failure. The result is that costs rise, goals and opportunities are not met and this results in further downsizing.

Companies that are changing their teams need to consider that they are in effect changing the make up of the team dynamic and need to consider a integration period in exactly the same way as if they were to be introducing a new members of staff

With the financial downturn, loss of bank confidence and recall of loans it’s inevitable that well known brands will disappear from the high street.

Marks & Spencer, Curry’s and other brands are recording falling income. More concerning is the amount of investment owned by the banks in Iceland.

However, there is one glimmer of hope, and that it if the shopper should decide that an “enjoyable Christmas” to put all these miseries behind us is necessary and, as in the past, spends in the high street to blow away the blues.

If not then it won’t be just banks such as HSBOS, lloyds TSB and HSBC won’t be the only businesses shedding staff this year. Unemployment in the UK will increase sharply and perhaps we will be talking “depression” instead of downturn.