Cut Back Without Crippling Your Organization

In difficult times like these, employees need to feel the pat on the back.

By Ricci M. Victorio -- JCK Online, 6/1/2009 2:00:00 AM

Around the proverbial water cooler, I have heard business owners discussing the reduction of expenses and, of course, we always end up on the topic of reduction of staff. One of the biggest mistakes a business owner can make is to think about letting go the highest paid, most experienced employees for a less experienced, yet less expensive, replacement. This small group of employees can do more with less in a faster amount of time than two or three lesser-experienced folks. These folks will be able to multitask, have proven they are committed to you for the long haul, will usually willingly sacrifice personal gain knowing it is for a good cause (keeping the ship afloat), and will be able to take the ball and run with it (without your chasing them).— Reprinted fromExpertBusinessSource.com

Here are some Do's and Don'ts to maximize your business team with less:

Do

Reward, encourage and retain loyal customers.
Keep advertising. Market your servicing capability, rather than product availability. Review your current marketing strategy and use your money where it can make the most impact. But don't disappear or your customers will think you have gone out of business.
Owners should, if capable, step back into an operational role, reducing one more supervisory position.
If letting go of personnel does not fit your paradigm, consider offering some creative solutions, such as job sharing, reduced work weeks or hours, or across-the-board percentage pay cuts (including yours).

Don't

Stop meeting regularly with your management team and/or employees. This is the time where you should be meeting daily, weekly, and monthly to discuss current performance, strategies, and adjustments to the market in a timely and proactive manner, and, most important, to give them instant feedback for how they are succeeding.
Stop educating your employees. The more they know you believe in them enough to keep giving them the tools to improve their performance, the more they will do just that.
Stop leadership training for your management team. You need thinkers, problem solvers, and partners to help you navigate these tricky times.