For anyone who has never before been told to drastically cut department costs in short order, I should think the book would be an absolute life-saver. In addition to sensible advice on how to handle the situation with the minimum of damage to the company and individuals, the book contains worksheets on how to figure costs, a selection of model speeches and letters, and a step-by-step process for deciding on the outcome for each employee.
As the authors say, "Layoffs alone don't work. Companies that lay off employees to get costs in line with revenues rarely improve their return on investments or revenues. And they never regain the stock price they had before the layoffs."
The aim of The Headcount Solution is find ways of reducing costs *without* firing employees, and to ensure that layoffs that can't be avoided don't leave the company unable to benefit when the market does return.
The challenge through all this turmoil is to retain your top talent and control costs. That combination is difficult to achieve, since highly proficient employees also expect to be highly compensated. This dilemma has been front-burner for the past few years. Will it continue to be an issue as we move through the decade in a growing economy? My perspective is yes: companies will continue restructuring and the entire employment environment will be very fluid. The balancing act of keeping people and managing compensation will be a vital skill for successful business leaders.
The book begins with a recognition that layoffs, easy as they may be as a simple solution, may not always be the best answer. Chapter 1 opens with Key Principles, a good positioning that continues as a pattern through the book. Downsizing is explained in short sections in a style that reminds me of USA Today-short, pithy statements. The practicality of the book jumps out with numbered how-to steps to follow. You won't find a lot of depth here, but rather pragmatic thought stimulators. This book will be most valuable for people with experience and/or knowledge in human resource management practices.
The second chapter reports on what companies are doing to cut costs and keep people. The chapter reports on the responses of 1,245 companies to a 2001 survey. Results are reported, followed by the sort of summary that appears at the end of each chapter. The first section concludes with a chapter on how leadership can maintain morale during the kind of crisis that inspires downsizing.
Part Two moves from dilemma to solution, providing seven steps to cut compensation costs. Readers will find an easy-to-read format (plenty of space between lines-airy). A wealth of ideas is shared in these pages as you move from preparation to planning to implementation, to getting back to business.
Then comes the frosting on the cake: five appendices, a glossary, and a good index. Two sample employment termination agreements are offered, one for individual workers 40 and older and another for more than one worker over 40. We're into the legal cover-your-anatomy stuff here. The other three appendices are quite unusual. They're sample speeches for corporate leaders to use in announcing rounds 1, 2, and 3 of cost cutting. I wondered about this feature, thinking that this must be Cost Cutting for Real Dummies.
There is some value in the sample speeches as readers will gain some insight into the issues that need to be covered. However, leaders should be encouraged to use their own phraseology and creativity so their own personality comes through to their people.
As lead author of "Impending Crisis: Too Many Jobs, Too Few People," I believe that we will soon move into an era of increasing headcounts, we're not quite there yet. So this book has instant value today, and will have philosophical and procedural value into the future.