Unfortunately, in a recession many companies face an unpleasant choice: downsize, or die…
For a few the situation is untenable – they have fixed costs of large numbers of staff on the payroll when there are no orders on the books and therefore no work for them to do.
But in other instances there are orders coming through and there are opportunities to improve customer service levels and drive more business at the cost of the competition. The unpalatable truth is that often the soft option is to reduce staffing levels rather than change an ineffective culture.
Changing the internal culture of a business is a tough proposition.
In reality, for a lot of companies the recession presents an opportunity for them to engage their staff more fully through innovation and develop a long term loyalty through trust.
Innovation and trust are the two key ingredients for developing your human capital.
Maximising human capital drives competitive advantage.