S T R I C T L Y C O N F I D E N T I A L BMARKET DATA GROUP M E M O R A N D U M DATE: August 30, 1991 TO:þþDoug Smith FROM:þEd Happ CC:þþJ. D'Auria SUBJECT:þDOWNSIZING OBJECTIVES ______________________________________________________________________ I've reviewed recent literature on corporate downsizing, and distilled the following 10 goals which I recommend to you: 1. BRefocus the corporate mission and goals. The people need to know where the company is now going, at a minimum in the near-term (6 months), preferably over a longer horizon (next fiscal year). The question to answer: where will the company be and what will it look like in the foreseeable future. 2. BGain the commitment of the surviving management group. Insure department managers are signed up for the refocused mission. 3. BProvide a succinct, to-the-point rationale for the downsizing. All employees, both remaining and exiting, will need to know this. 4. BPlan the downsizing process thoroughly. Joanne and Rick is are near to completing this. It needs to be 100% finalized in advance of the announcement date. 5. BCommunicate the refocused strategy frequently. This should occur in more frequent company meetings, bulletins, and department meetings led by Op Council members. 6. BIncrease access to management. Have all managers schedule more meetings and reiterate an open door policy to help employees through this process. 7. BHave an outplacement plan. This is not simply a severance benefit, but an important event for remaining employees, indicating that the company still cares about people. 8. BIncrease the freedom and authority of managers, supervisors and staff. As the workload and responsibilities increase for the remaining employees, it is important that they have more say in how it gets done. 9. BDecrease bureaucracy, paperwork, and reporting. This is related to #8. Since there are less people to produce the same amount of work, the company needs to identify tasks that can be eliminated so the most important functions get done. 10. BIncrease motivation through creative incentives and training. Since career paths are now reduced or eliminated, variable compensation awards and job enrichment programs help keep super stars motivated and from leaving the company.