by David Grossman
As corporations look to build cash reserves, cost cutting is one of today’s major business trends. Seventy-six percent of respondents to a recent Deloitte Consulting survey expected a significant push to reduce costs over the next 24 months.
Budget cuts are considered a smart move for even the healthy, growth-focused companies. But time and again, these cuts are being poorly communicated to employees.
Consider two recent examples. Discussing AOL’s decision to cut, CEO Tim Armstrong blamed higher health care costs on two AOLers who had “distressed” infants. In another case, Microsoft executive Stephen Elop announced a 12,000-employee layoff with an incredibly bad memo that never even mentioned the cuts until the 11th paragraph. The result: withering backlash from the media and employees.
A more strategic process could have avoided such gaffes. Our work with scores of corporate clients ident...(register to read more)