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Building Trust While Cutting Costs
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Building Trust While Cutting Costs

During a restructuring, rumors spread and fear takes hold. You can reduce the turmoil by finding ways to inform, empower, and inspire employees.

Vinay Couto, Deniz Caglar and John Plansky
Strategy+business, 2017
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Editorial Rating

7

Qualities

  • Applicable
  • Well Structured

Recommendation

Almost always, the announcement of a restructuring initiative occasions cynicism and fear among employees – with good reason. Too often, these programs backfire and leave the organization weaker than before. Even apparently successful cost-cutting programs can cause turmoil and damage employee morale. Nevertheless, a well-managed restructuring initiative offers opportunities to create a more agile, more competitive organization. Vinay Couto, Deniz Caglar and John Plansky, experts in strategic cost transformation, outline the elements of a well-led program. getAbstract recommends this article to all leaders and managers of organizations planning cost-cutting programs.

Take-Aways

  • During restructuring initiatives, leaders must support employees by assuring them that the transformation will be effective – and then deliver on that promise.
  • Throughout a restructuring, leaders’ and managers’ empathy for employees can reduce turmoil, build trust and sustain morale.
  • In the first phase of a well-led restructuring program, leaders communicate the reasons for the initiative and encourage confidence and optimism among employees.

About the Authors

Vinay Couto and Deniz Caglar are leading practitioners for Strategy&, PwC’s strategy consulting group. John Plansky is executive vice president and head of State Street Global Exchange at the financial services and bank holding company State Street Corporation.

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