Point Lookout: a free weekly publication of Chaco Canyon Consulting
Volume 4, Issue 28;   July 14, 2004: Those Across-the-Board Cuts That Aren't

Those Across-the-Board Cuts That Aren't

by

One widespread feature of organizational life is the announcement of across-the-board cuts. Although they're announced, they're rarely "across-the-board." What's behind this pattern? How can we change it to a more effective, truthful pattern?
Scissors

Revolutionary War scissors. Photo courtesy Guilford Courthouse National Military Park of the U.S. National Park Service.

When we hear about across-the-board reductions in resources or staff, we know two things right away. First, it isn't good news. Second, the cuts probably won't be "across-the-board." Experience tells us that very often those with clout who object to the cuts will receive smaller cuts or perhaps even increases. The terminology of uniformity is at odds with experience.

And suppose you're one of the (usually) few who are fired or laid off. For you, the cut is 100%, not 5% or 8%. If you're one of these, your experience of "across-the-board" is rather different from the experience of almost everyone else.

Still, despite the high price we pay for the contrast between language and action, we continue to use metaphors of uniformity as we execute the uneven reductions. Why? And what can we do instead?

Fairness
We do want to be fair. We believe that "spreading the pain" proportionately is most likely to be fair.
Numerical fairness is an illusion. Because reducing waste in larger, more mature organizations is easier than in smaller, younger ones, identical proportional cuts in projects or departments both large and small, both mature and youthful, are inherently unfair.
Instead of devising mathematical algorithms, choose to monitor waste — even in good times. Understand that the larger, more mature business units are better able to resist waste monitoring and reduction efforts. To truly achieve fair reductions, make reductions that are progressive with the scale and maturity of the business unit.
Urgency
Because we Across-the-board decisions
are fast, but they're
rarely thoughtful.
Thoughtful decisions
take time.
usually have to make reductions quickly, we rarely have time to tailor a reduction profile that conforms accurately to the needs and objectives of the organization. Simple proportionality is an enticing expedient.
Thoughtful decisions take time. Not having time to make a thoughtful decision is a poor excuse for making a less-than-thoughtful decision, and it's an indicator of inadequate resources at the level of the decision maker.
Apply whatever resources you need to make smarter decisions. If you have to, spend a little to avoid misspending even more.
Placating the about-to-be-wounded
The message that "we're all affected equally" calms the population. Exploiting their sense of fairness, we help people justify their own inaction and powerlessness, and we make it easier to manage the horde.
Manipulation does work in the short term, but its effects expire quickly, leaving a residue of simmering, unresolved, and disempowering resentment. We pay for it all eventually, in distrust, cynicism, low morale and depressed performance.
Encourage people to voice objections and then deal with them. Recognize that even though stifling objections might make the ride smoother today, it makes the ride rougher tomorrow.

A commitment to telling the truth entails a commitment to using language that fairly describes our own actions. To do otherwise in the interest of fairness is unfair. Go to top Top  Next issue: The Ties that Bind  Next Issue

52 Tips for Leaders of Project-Oriented OrganizationsAre your projects always (or almost always) late and over budget? Are your project teams plagued by turnover, burnout, and high defect rates? Turn your culture around. Read 52 Tips for Leaders of Project-Oriented Organizations, filled with tips and techniques for organizational leaders. Order Now!

Your comments are welcome

Would you like to see your comments posted here? rbrenjTnUayrCbSnnEcYfner@ChacdcYpBKAaMJgMalFXoCanyon.comSend me your comments by email, or by Web form.

About Point Lookout

This article in its entirety was written by a 
          human being. No machine intelligence was involved in any way.Thank you for reading this article. I hope you enjoyed it and found it useful, and that you'll consider recommending it to a friend.

This article in its entirety was written by a human being. No machine intelligence was involved in any way.

Point Lookout is a free weekly email newsletter. Browse the archive of past issues. Subscribe for free.

Support Point Lookout by joining the Friends of Point Lookout, as an individual or as an organization.

Do you face a complex interpersonal situation? Send it in, anonymously if you like, and I'll give you my two cents.

Related articles

More articles on Organizational Change:

September Eleventh
Because of the events of September Eleventh, and out of respect for the dead and bereaved, Point Lookout didn't appear this week. I hope we can all find a way through our pain to a place of peace and respect for all. Please take the time that you would have spent reading Point Lookout and use it to move us all a little closer to that goal.
StonehengeHigh Falutin' Goofy Talk
Business speech and business writing are sometimes little more than high falutin' goofy talk, filled with pretentious, overused images and puff phrases of unknown meaning. Here are some phrases that are so common that we barely notice them.
A diagram of effects illustrating two more loops in the Restructuring-Fear CycleThe Restructuring-Fear Cycle: II
When enterprises restructure, reorganize, downsize, outsource, lay off, or make other organizational adjustments, they usually focus on financial health. Here's Part II of an exploration of how the fear induced by these changes can lead to the need for further restructuring.
Gachi Fernandez and Sergio Cortazzo, professional tango coupleScope Creep, Hot Hands, and the Illusion of Control
Despite our awareness of scope creep's dangerous effects on projects and other efforts, we seem unable to prevent it. Two cognitive biases — the "hot hand fallacy" and "the illusion of control" — might provide explanations.
The iconic image of cyber code, as popularized in the film "The Matrix"Cyber Rumors in Organizations
Rumor management practices in organizations haven't kept up with rumor propagation technology. Rumors that propagate by digital means — cyber rumors — have longer lifetimes, spread faster, are more credible, and are better able to reinforce each other.

See also Organizational Change and Organizational Change for more related articles.

Forthcoming issues of Point Lookout

XP-80 prototype Lulu-Belle on the groundComing March 12: Embedded Technology Groups and the Dunning-Kruger Effect
Groups of technical specialists in fields that differ markedly from the main business of the enterprise that hosts them must sometimes deal with wrong-headed decisions made by people who think they know more about the technology than they actually do. Available here and by RSS on March 12.
How a dog might express remorseAnd on March 19: On Lying by Omission
Of the many devious strategies of workplace politics, deception is among the most commonly used. And perhaps the most commonly used tactic of deception is lying. Since getting caught in a lie can be costly, people try to lie without lying. Available here and by RSS on March 19.

Coaching services

I offer email and telephone coaching at both corporate and individual rates. Contact Rick for details at rbrenjTnUayrCbSnnEcYfner@ChacdcYpBKAaMJgMalFXoCanyon.com or (650) 787-6475, or toll-free in the continental US at (866) 378-5470.

Get the ebook!

Past issues of Point Lookout are available in six ebooks:

Reprinting this article

Are you a writer, editor or publisher on deadline? Are you looking for an article that will get people talking and get compliments flying your way? You can have 500-1000 words in your inbox in one hour. License any article from this Web site. More info

Follow Rick

Send email or subscribe to one of my newsletters Follow me at LinkedIn Follow me at X, or share a post Subscribe to RSS feeds Subscribe to RSS feeds
The message of Point Lookout is unique. Help get the message out. Please donate to help keep Point Lookout available for free to everyone.
Technical Debt for Policymakers BlogMy blog, Technical Debt for Policymakers, offers resources, insights, and conversations of interest to policymakers who are concerned with managing technical debt within their organizations. Get the millstone of technical debt off the neck of your organization!
101 Tips for Managing ChangeAre you managing a change effort that faces rampant cynicism, passive non-cooperation, or maybe even outright revolt?
Go For It: Sometimes It's Easier If You RunBad boss, long commute, troubling ethical questions, hateful colleague? Learn what we can do when we love the work but not the job.
101 Tips for Effective MeetingsLearn how to make meetings more productive — and more rare.
Ebooks, booklets and tip books on project management, conflict, writing email, effective meetings and more.
Comprehensive collection of all e-books and e-bookletsSave a bundle and even more important save time! Order the Combo Package and download all ebooks and tips books at once.
If your teams don't yet consistently achieve state-of-the-art teamwork, check out this catalog. Help is just a few clicks/taps away!