Downsizing

‘For some considerable time, we have been exposed to fierce competition from low-cost countries, including units within our own Group, but we have managed to hold our own by constantly improving our efficiency. Even so, the blow has fallen – the Group management has informed me that our unit is to be closed down and the operation moved abroad. We have been given 15 months grace, and I have been made responsible for the whole winding-up process. This task also includes keeping production going without disruption throughout the winding-up period and continuing to meet volume and quality targets.

‘My first thought when I was given the assignment was “This is mission impossible”. How will I, my managers and my staff handle this?’

The key to success is involving the whole workforce in the winding-up process. The most important factors in a well-embedded action and winding-up plan are

• a clear set of targets and well-defined follow-up
• total transparency, honesty and a proactive dialogue
• systematic, frequent and open information and communication
• training the managers to handle both their own and their staff’s uncertainty and frustration, and, as managers, supporting the staff when this occurs through an appropriate mix of preparation for, and implementation of, active support measures
• individually-tailored transitional support for personnel through discussions, training, jobseeking etc.

The major challenge in downsizing and shutdown projects is to carry on full operation up until the final date. The decisive factor in succeeding in this is for managers and staff to be motivated to take full responsibility until the work is finished.

The winding-up process can be divided into the following phases:

• developing an action and winding-up plan and getting the group management and the managers to sign up for this
• implementing the action plan in the organisation in such a way that everyone supports it
• a back-up plan for every part of the winding-up period – including preparation to take action where necessary
• an escalation phase in preparation for special stages in the operation, and for the relocation of machinery and operations, as well as for the shutdown itself