Upload
others
View
10
Download
0
Embed Size (px)
Citation preview
WHAT TO CUT & HOW TO CUT IN THE MIDST OF A PUBLIC HEALTH CRISIS
A different kind of crisis
2© 2020 Korn Ferry. All rights reserved
The playbook companies used in 2008-2009 needs to be modified in 2020
STARTS IN COMMUNITIES, AS WELL AS AT WORK
A HUMANITARIAN CRISIS, AND A FINANCIAL CRISIS
A DISRUPTION, NOT A RECESSION (YET)
Scenario planning
3
Before any actions are taken, organizations must consider the change in demand and the length of time the crisis will last.
© 2020 Korn Ferry. All rights reservedDuration
Depth
Two Months Eighteen Months
> 50% Revenue
Loss
Minimal Revenue
Loss
§ Furloughs, hours reductions, voluntary leave, exec pay reductions.
§ Supplier concessions.§ Near-term efficiency measures.
PARE AND PROTECT§ Layoffs.§ Divestitures.§ Reorganization.§ Outsourcing.§ Capex cuts.
RESTRUCTURE
§ Capturing variable cost savings.§ Delay new hires, new spending,
raises.§ Cancel events, low priority
initiatives, travel.
RIDE OUT THE STORM§ Near-term efficiency measures.§ Targeted layoffs.§ Prioritization of strategic
initiatives.
GET LEAN
© 2020 Korn Ferry. All rights reserved 4
WAVE ONE: COST-CUTTING TACTICS
Take out tactics
Timing tactics
Capturing variable expense savings
© 2020 Korn Ferry. All rights reserved 5
WAVE TWO: INCREASE EFFICIENCY, FAST
Optimizing rewards spend
Adjusting management
spans
Stopping grade/title inflation
Auditing your operating model for redundancy
© 2020 Korn Ferry. All rights reserved 6
WAVE TWO: INCREASE EFFICIENCY, FAST
Tackling process efficiency
Supplierconcessions
Targeted headcount reduction
Targeted facility closures
© 2020 Korn Ferry. All rights reserved 7
WAVE THREE: FOUNDATIONAL RESTRUCTURING
Rightsizing layoffs
Divestitures
Capex cuts
Outsourcing
Realigning the cost structure is hard on employees.
Anxiety about health issues already has many of us on edge; anxiety about job loss and job security is going to make that even worse.
Above all, maintain organizational resilience
© 2020 Korn Ferry. All rights reserved 8
EMPATHY FOR DISRUPTION
COMMUNICATING THE CONTEXT
NEW TECHNIQUES TO MAINTAIN ENGAGEMENT
Thank you