How to take people costs out of your business without impacting long-term value
The current economic downturn is forcing consumer businesses to
look hard at their costs. However, unlike previous downturns, and
in part because of them, many executives have recognised the need
to reduce headcount and costs in a more sustainable manner.
By reducing headcount indiscriminately, with little consideration
of operational capability trade-offs or wider strategic agendas,
organisations may struggle to maintain operational performance and
respond adequately to market recovery. Consumer products businesses
will have to think carefully about the scale and targets of any
significant headcount adjustments.
Many companies have already realised the benefits of transforming
and optimising their back office functions through outsourcing,
off-shoring and technology innovation. Now the focus shifts to
include core operations, where losing critical capabilities could
have a direct impact on the short and long-term performance of an
organisation and therefore carries greater risk.
For further information, download our report '
Intelligent right-sizing and workforce transition in consumer
products'.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.