Comments on: Quick, Cut the Good People http://www.clwill.com/leadership/quick-cut-the-good-people/ Advice, Commentary, and Resources for Building World-Class Teams Thu, 20 Nov 2008 16:16:51 +0000 http://wordpress.org/?v=2.1.2 By: Nancy Williams http://www.clwill.com/leadership/quick-cut-the-good-people/#comment-2554 Nancy Williams Sun, 29 Apr 2007 21:26:08 +0000 http://www.clwill.com/leadership/quick-cut-the-good-people/#comment-2554 We saw the rats leaving the sinking ship in the case of Owens-Corning. The problems facing the company were long standing and caused by a dogs-breakfast of accumulated problems. First was a hostile take-over attempt in the '90's that forced the board to dump costly divisions that had promise for the future, but were unaffordable under the then circumstances. Good staff had to go. Then the ballooning asbestos lawsuits overran any predictions and depreciation meant to cover the defense. Finally, bad management decisions, a misguided buyout of another company with its own asbestos problems, fueled the rumors and the exodus began, slowly building until it became obvious that bankruptcy loomed. Intelligent and experienced high and middle level managers got their resumes in shape and said goodbye. Then came the actual court ordered bankruptcy and the downsizing was unavoidable. The shell of a company struggled through the next four or so years, finally emerging from bankruptcy just late last year. Job One now is rehabilitating morale in what's left and that appears to be happening - the stock is up. So there are circumstances - Ford and GM are other examples - when layoffs aren't a choice. How they are accomplished is well addressed in your posting. We saw the rats leaving the sinking ship in the case of Owens-Corning. The problems facing the company were long standing and caused by a dogs-breakfast of accumulated problems. First was a hostile take-over attempt in the ’90’s that forced the board to dump costly divisions that had promise for the future, but were unaffordable under the then circumstances. Good staff had to go. Then the ballooning asbestos lawsuits overran any predictions and depreciation meant to cover the defense. Finally, bad management decisions, a misguided buyout of another company with its own asbestos problems, fueled the rumors and the exodus began, slowly building until it became obvious that bankruptcy loomed. Intelligent and experienced high and middle level managers got their resumes in shape and said goodbye. Then came the actual court ordered bankruptcy and the downsizing was unavoidable. The shell of a company struggled through the next four or so years, finally emerging from bankruptcy just late last year. Job One now is rehabilitating morale in what’s left and that appears to be happening - the stock is up.

So there are circumstances - Ford and GM are other examples - when layoffs aren’t a choice. How they are accomplished is well addressed in your posting.

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