The Organisational Quick Fix that becomes a Quick Fail

Posted on 7/4/2015 11:00 AM By Change Systems

We have all seen it: An organisation’s profit diminishing over a period of time…   Little or nothing is done for years and then all of a sudden retrenchments are announced. Or a new CEO is appointed to turn around the company’s performance. More often than not this coincides with a two-year contract for the CEO.   Initiatives such as continuous business improvements, optimising IT systems, changing the company’s culture take time and doesn’t give the high impact and immediate results that cutting the labour bill does. A study quoted by Wayne Casio that refers to S&P 500 firms from 1982 to 2000, casts serious doubt on the long-term payoff of this approach.   The unintended consequences of retrenchments are many fold. When uncertainty is created in an organisational system, people start to panic and the ones that can (highly skilled and experienced employees) jump ship.   As humans we prefer stability. If we could keep control and keep most things ...

Popular tags: retrenchments, organisational performance, continuous improvement, organisational culture, change management