Preface

We talk to our clients frequently. They have repeatedly told us that managing through a business crisis and holding onto the people needed for survival is the single most difficult issue confronting their companies today. It seems to be the topic that keeps many executives up at night, and it has created many challenges for us as consultants. It is a dilemma that “cuts” both ways: how do you cut costs while at the same time keep your best people?

We wrote this book to help companies solve this dilemma. Working with companies in both good times and bad, we have assisted in critical downsizing as well as growth decisions. Some companies have succeeded in maintaining the human capital they need over the long term, while others have failed. Winners have engaged in decisions quite different from losers.

• Winners remain mindful of human capital and keep its value as a high priority when making cost-cutting decisions.

• Winners follow consistent policies during expansion and contraction. They have a game plan ready when the crisis strikes. They are not caught off guard.

The single most important thing to take away from this book is a formula that will allow you to reduce costs when necessary and retain the people you will need for the future. We will share with you a seven-step process and practical, adaptable tools to help you quickly decide upon the skills and people you need for long-term success.

We have devoted our careers to a balance of consulting, research, and teaching. Over the years much has remained the same. A constant has been and will always continue to be the need to apply sound judgment to the solution of business problems. We have attempted to provide our readers with such judgments, appropriate for the fast- changing and challenging contemporary environment we face.