Cut Costs like Avon -- Not Home Depot
A subtle tension that many
senior executives get just plain wrong in a downturn has to do with the
distinction between making resource allocation decisions that necessitate some
painful choices, and making decisions that fundamentally undermine the culture
and values of an organization.
All too often, when the numbers look bad,
managers who seem to possess certain qualities of ruthlessness, toughness and a
'take command' persona are handed the reins, without really thinking through
the cultural, symbolic and organizational consequences of the decisions they
are making. It seems natural -- after all, when the news is grim, why
wouldn't you turn to someone who generates the comforting feeling that waste
will be rooted out, efficiency promoted, and that a more 'shipshape'
organization will be the result?