Facing the cuts & Surviving

One cannot get away from headline after headline of panic about the impending public sector cuts and how (if you believe the papers) the world as we know it is coming to an end. 

Optimism is probably the most important mental attitude to survive tough times; that, and a bit of foresight.  A beacon of hope, on how to survive the tough times comes from Sunderalnd City Council.  Recently profiled in People Magazine, it has an exemplary performance record and has the lowest council tax in its region.  

Some of the things that stand out as unusual and inspired choices include:

• Avoiding a redundancy program – “because they increase costs and deliver short term gains”.  This avoided a rush of volunteers to leave, some of whom would be critical roles and gave out clear messages of commitment to long term success.

• Making the most of Redeployment – as the council has a multitude of different roles and departments it provides a vibrant and diverse internal job market.  They also parted with traditional thinking that experience and knowledge were the key criteria, instead using profiling that matched aptitude and ability.

• Making the most of surplus talent – Many staff found themselves in transition during the changes and cost drive and rather than having them sitting on a bench waiting for something to happen, teams were developed that provided resources and support for other areas of the council including project teams to bring about efficiencies and improve processes.

• Providing Flexible Win-Win Opt-Out Options – reducing the payroll bill, especially in a unionized environment can be tough and often adversarial, but not if you work with your people on options.  Encouraging staff to buy more annual leave (up to 2 weeks) or go part time,  or helping staff to realise ambitions as entrepreneurs by providing support and income security of part-time work to get started. 

Conclusions

Often organisation's response to a down-turn and cost savings is reactive and lacks any imagination or long-term thinking about preserving the inherent talent in the workforce.  What stands out in this example is the inspired and original thinking, so often lacking.  It shows the power of optimism, insight and commitment to facing challenges without losing sight of the value of your people.

 

Comments

[Michael Mangalam]

I really liked the post. Typically, companies lack imagination in downturns. I especially like the option of going part-time. There are many closet entrepreneurs out there and this option could be a win-win - for both the organization and the employee.

- Michael Mangalam, Founder, http://www.ParetoCentral.com
"Crowdsourced and Confidential Consulting for Business Questions"

[Mary]

Michael thanks for your comments on the blog 'facing cuts & surviving'. I agree that companies lack imagination in downturns and go in to panic mode. It's nice to find some beacons of alterantive practice out there. Thanks for taking the time to share your thoughts. Mary