67. When Your Strategy Means Downsizing
What’s Inside
Hard Decisions
4 Strategies to Navigate Change
1. Hard Decisions
In 2022, one of my long-time clients decided to pivot their strategic direction.
They wound down 1 service line to focus on building 2 other service lines.
A re-org followed along with repositioning, downsizing, upskilling, and more.
Today, they've exceeded their revenue goals and are expanding again with a team that is aligned towards a common vision.
Strategy means making hard decisions.
It's saying No to one thing to say Yes to another.
Channeling HBS guru Michael Porter, “The essence of strategy is choosing what not to do.”
I call this a Strategic No, & it opens the possibility of Yes.
But a Strategic No often drives change and may include downsizing.
And change is HARD.
Companies may downsize for many reasons –
Lack of profitability
Shift in strategic direction
M&A
Cost reduction
Technology advancements
Market conditions
Economic downturn
Discontinued product or service
What difficult decisions is your company facing today?
2. 4 Strategies to Navigate Change
As you navigate these difficult decisions consider –
Why – A strong leader communicating the “why” is absolutely essential.
Does your team understand the change and why it is needed?
What is the urgency and what will happen if change doesn't occur?
Head & Heart – People want to know why, and logic is a first step, but it is not enough. People want to feel seen, heard, and valued.
Leadership needs to acknowledge that this time is hard for everyone.
Offer ways for your team to process changes, individually & collectively.
Reposition, Reskill, Retrain – Your people are your greatest asset. Before downsizing how can you reposition, reskill, or retrain to keep valuable talent?
Leverage the talent you have & think long-term, not just the next 90 days.
Communicate how you've planned appropriately for the days ahead.
The Golden Rule – Do unto others as you would have them do unto you.
If downsizing is inevitable, treat people with dignity and respect.
Ensure communication is clear, concise, and consistent.
Schedule a call if your team is navigating a difficult season.
3. Ways to Work Together in 2025
Here are some ways we can partner in these rapidly changing times.
Leadership Offsite: One day offsite to define your growth strategy & priorities, clarify your go-to market plan, and improve your team's communication. (Learn More)
Strategic Executive Advisor: Embed strategic advisory services within your C-Suite. Strategic services are tailored to meet your company’s unique needs. (Learn More)
As always, thanks for reading.
To your strategic success,
Susan
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