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Intelligent

Rightsizing
Shaping businesses into better
competitors: The strategic HR
Management
challenge
Imran Ahmad
Strategic HR
challenges

Head HR
REDTAG Group

Session
Objective:

Provide balanced practices


for work force rightsizing
which limits Business risks
and optimize strengths

Strategic HR
challenges

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Red onal
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ope
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b
n
a
t
a
f
o
e
r
pAgil
Be arket
M
e
v
i
s
n
o
p
res

Strategic HR
Challenges

MR.
BOSS

Shareholder
Expectation

Show me the
Money
! MM
P&L
Elements
Sales
Turnover
Cost of
Sales
Gross Profit
People Cost
Other
Expenses
Net Profit

Strategic HR
Challenges

Currency

100

100%

65
35
15

65%
35%
15%

5
15

5%
15%
4

Lets see how to


help:
Facing the Market Realities
What is Rightsizing
The available options
Balancing rightsizing
Right Leadership
Practices & Behaviour
Critical success Factors
Wrap Up
Strategic HR
challenges

Survival
Strategy :
Competitive
repositioning
MR.
BOS
Strategic HR
Challenges

Creating Business
Value

Mr. Boss & the


Market realities

Surviv
al Kit
for
Busin
ess

Strategic HR
challenges

Strategic People
Capability
Efficient
Organisation
Structures
Operational
Effectiveness
Organisational
Culture
Focus on Core
Competence
7

Rationale for
rightsizing

Mr. Bosss
Strategy:
Rightsizing

Strategic HR
challenges

Too large shoes rub


blisters , too small shoes
cause corns
-Unknown

Rightsizing
options

What is Rightsizing
?

Strategic HR
challenges

Business
Portfolio
Analysis

Focus on
Core
Competenc
e

Evaluation
of
operational
Effectivenes
s

Internal
Structure
revamp

Internal
Process ReExaminatio
n

Headcount
& Role
Rationalisati
on

Choosing the
change

The usual options

Strategic HR
challenges

Headcount &
Role
Rationalisation

Internal
Structure
revamp

MR.
BOS

10

Balancing
rightsizing

Dont yank the


Revenue offSupport
wheels
!
Function
s

Re-Align
workforce
Competence
Adopt
considered
Hiring
Redesign
Competitiv
compensation
Outsource
/
e
Reduce NonCapability
core
activities

Services

Re-engineer
inefficient
processes

Structur
al
Function
s
Reduce

dispensable .
Retain valuable
Consolidate
Freeze Hiring
Services ,
Reduce Roles
Consolidate
Reduce
operations/
unnecessary
Organisati
Structural
locations
hierarchy
Implement
onal
Right-size
Competen
the
multi-tasking
&
Expense
Agility
ce
job sharing
structure
Leverage Technology
Reduce Non Performers

Consider voluntary redundancy/ retirement


Strategic HR
challenges

11

Managing Change

The Right
Company Leadership
Leadership
( Led & facilitated by

Strategic HR
Challenges

HR )
Identify Vision , Plan and expected
Goals
Identify the suitable rightsizing
choices
Determine scope of the
implementation
Communicate to and Align people
Evaluate potential costs
Prepare communication plans
Prepare survivor plans
12

Practices &
Behaviours

Respectful
Departure
Communicate
facts honestly

Provide
reasonable
severance
package
Strategic HR
Challenges

Complete
detailed
Documentation

Treat people
with dignity

Plan well &


provide
notification
period

Choose Right
timing during
the year

13

Practices &
Behaviours

Ensure
Retention

Strategic HR
Challenges

Training
Reemphasize
the company
vision & goals

Introduce
efforts to
enhance
competence &
skills

Make leaders
visible and
supportive
during
rightsizing

Monitor and
track the
deployment of
future plans

Develop a
culture of
Accountability
& rewards

Create
engagement
Events and
ensure a
culture of Zeal

14

Avoiding pitfalls

Critical
Success
Factors

Strategic HR
challenges

Action
Planning

Strong HR Honest
Leadership Communica
tion

Proper
investme
nts

Costbenefit
Analysis

15

A live Example

Strategic HR
Challenges

16

Rightsizing
example

KSA :2010-2011
Automotive
Backgro
industry
Rightsizing driven by Sustained losses
und
Strategy
Rightsizi
ng
Initiativ
es

Strategic HR
Challenges

Better balance sheet mngmt, Build


capability , Create accountability ,
strengthen
Drive Sales market leadership
Volume
Key drivers :
new Skills ,
incentives
Introduced
Optmised Org.
structure

Trackers

Unit
Volu
me

Outcom
es

Higher
unit
Volume

Invent
ory

Profits

Focus on
Credit &
Collections

Renegotiate
d Loans &
interest
New Talent
Made
New Comp &
Roles
Ben
Redundant
structure
CSI
Servi
Function
score
ce
al KPIs
s
KPIs
Satisfied
customers

A new
busines
s unit

17

Limiting Risks
Optimising
Strengths
A Quick Summary

Strategic HR
Challenges

18

Quick Summary

Wrap Up

Strategic HR
challenges

Potential WinningLikely
Risk Strategies
Strengths
There are several areas
Process
for
Emotional
rightsizing-choose Efficiencie
most
costs
appropriate
s
Ensure proper due diligence
Process
Optimised
for short-& long term
disruption
Structures
associated costs .
Strong Leadership is key to
Re-tooling
Capability
achieving desired rightsizing
Costs
bandwidth
benefits
Best
Organisati
practice behaviour will
Higher
ensure
onal
talent retention and
Cash flows
performance
Stress
Culture

19

Strategic HR
Challenges

20

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