The corporation suffers from lack of imagination and innovation, caused by a stiff bureaucracy and hidebound culture. Even drastic cuts will not help if the company's culture stays the same. When downsizing works, enlightened leaders devote great attention to human resources and network rebuilding. They raise the organization out of the ashes of downsizing, creating new social networks that empower and boost performance. Establish a clear strategic vision.
Successful leaders create a clear vision of the company of tomorrow and manage into that vision.
With the right vision, redeployment of resources, not downsizing, is the proper treatment to achieve corporate success. Manage networks, not Individuals. Running a company as a set of individuals is an exercise in crowd control. This approach leads to many sins, such as downsizing just to reduce headcount. Insightful leaders, though, manage the company as a network of relationships, and strive to revolutionize the way people work together, communicate, and interrelate.