Stephen Harvard Davis

Maria has held a departmental staff meeting and told her team that she is conscious that Christine (her assistant) is overworked and under pressure and is therefore removing some of her responsibilities. The result is that Christine will undertake fewer new staff interviews and more research. Maria will delegate staff interviews amongst the other team members as people are available. Christine sees this as a removal of a key part of her job and the scope of her work has been reduced.

This afternoon Maria has a meeting with the Sales Director and Project Manager to look at restructuring the remaining areas of the sales force. The meeting will identify those posts and branches in the north of England that The Sales Director wants to merge and reduce the headcount by three managers and five sales administration staff. Maria is being consulted to advise on retaining the people that the Sales Manager wants to retain whilst “letting go” those he sees as being less capable.

Following the strategy paper that Maria and the Sales Director produced a few weeks ago Maria has seen the first team that is being restructured, The Marketing Department.

The post of Marketing Manager and his deputy are seen as being redundant. In future these roles will be done by the Sales Director, who sees himself as an expert on the topic.

This has come as a shock to many people in the company as the Marketing team have been credited with increasing company profile and being instrumental in the development of new product ideas that have kept the company at the forefront of their industry.

The gossip around the coffee machines would suggest that many see this move as the Sales Director “consolidating his position” as opposed to looking forward to the company’s future success.

Maria has been at her new company for a month and seems to have settled in well, although her team have some reservations around issues of trust. They see her as being self-promotional as opposed to a “team advocate”.

Over this last few days Maria has been working with the CEO and Sales Director to look at restructuring teams. With the drop in sales resulting from the depression certain posts are now seen as being redundant. Maria is advising on how this can best be done and a strategy for implementation.

Some sales teams will disappear altogether and some will be merged into others. The first announcements will be made towards the end of next week. The objective is to have the new teams in place for early next year after a staff consultation period.

To prepare the necessary paperwork Maria has chosen to work with two of her more junior team members. Her assistant managers are wondering why this is the case and if there is a “hidden agenda” to Maria’s actions.

A major challenge for business leaders is to maintain organisational productivity. (Formally defined as the ratio of an organisation’s total output to total input, adjusted for inflation, for a specific period of time).

Yet is this challenge made more difficult during a downturn?

One of the inputs in the formula is the workforce but at this time when many companies are laying off their people talent. The question that should be asked is how this affects the productivity of those that remain and can improvements in productivity be sustained under such circumstances?

During the previous downturn I was involved with a company that made a series of redundancies and each time a new redundancy was announced productivity collapsed in other parts of the organisation. This wasn’t to say that people seemed to stop working, on the contrary everyone seemed very busy.

However, productivity continues to fall as people discussed the worsening situation and the company’s Directors buried themselves in their offices stating that they were busy “saving the company”.

Too often business leaders might assume that they are unable to positively affect the situation and that under the circumstances a drop in morale is inevitable. I disagree with this assumption and advise far greater “management visibility” at such times.