Structuring Your Organization in a Downturn

By Jim Schaffer

March 2008

Reducing expenses and overhead, “hunkering down”, and just trying to make it through is the business paradigm one typically observes in difficult economic times.  Yet at the end of this time frame, however long it might be, we are then typically forced to scramble in order to regain momentum and reposition our companies for the next period of growth.   We then rush to hire and restaff our organizations, to refocus on new or changing channels of distribution, and to reconsider a myriad of opportunities to expand our market penetration.  However, as we have all experienced, it takes a whole lot longer to build back an organization back up than it does to tear it down.

Even though the current economic picture is far from bright, this too shall pass.  And as it will likely pass in the next number of months, we must be careful to not fall victim to this traditional way of thinking, especially in these times.  First and foremost, tearing down an organization has rarely ever led to sales growth.  And in a declining market, it almost always produces negative growth.  Second, we have a different set of dynamics in play in the employment economy this time around.  With the employment demography beginning to shift from the populous baby-boom generation to the less numerous, more independent-minded “generation next” employment economy, the ability to replace lost talent will be even more difficult and costly.  And third, as most all of us are competing in a global marketplace, even maintaining our status quo in this time frame is tantamount to moving backward. 

So, before you cut staff and resources below your level of optimum efficiency, you need to reconsider all of the options available in pursuit of market share and of opportunities that exist today.  Schaffer Associates can help you do that.  We can assist you in the development of an appropriate strategy for structuring your organization that will best meet both your short term and long term needs.  As an independent, third-party consultant with many years of experience in developing custom strategies for our client companies, Schaffer Associates can work with you to identify just where to invest as well as where to conserve. 

Contact Jim Schaffer today at 704.535.9939 to learn more about our consulting services.