1. Intelligent
Rightsizing
Shaping businesses into better competitors:
The strategic HR Management challenge
Imran Ahmad
Head – HR
Strategic HR
REDTAG Group
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challenges

2. Session Objective:
Provide balanced practices for
work force rightsizing which limits
Business risks and optimize
strengths
Strategic HR
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3. MR. BOSS
Strategic HR
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4. Shareholder Expectation Show me the Money !
MM
P&L Elements Currency %
Sales Turnover 100 100%
Cost of Sales 65 65%
Gross Profit 35 35%
People Cost 15 15%
Other Expenses 5 5%
Net Profit 15 15%
Strategic HR
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Challenges

5. Let’s see how to help:
•Facing the Market Realities
•What is Rightsizing
•The available options
•Balancing rightsizing
•Right Leadership
•Practices & Behaviour
•Critical success Factors
•Wrap Up
Strategic HR
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6. Survival Strategy :
Competitive
repositioning
MR.
BOSS
Strategic HR
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7. Creating Business Value Mr. Boss & the Market
realities
Strategic People
Capability
Survival Efficient Organisation
Kit for Structures
Business Operational Effectiveness
Organisational Culture
Focus on Core
Competence
Strategic HR
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8. Rationale for rightsizing Mr. Boss’s Strategy:
Rightsizing
‘Too large shoes rub blisters , too
small shoes cause corns ‘
-Unknown
Strategic HR
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9. Rightsizing options What is Rightsizing ?
Business Evaluation of
Focus on Core
Portfolio operational
Competence
Analysis Effectiveness
Internal Headcount &
Internal Process
Structure Role
Re-Examination
revamp Rationalisation
Strategic HR
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challenges

10. Choosing the change The usual options
Internal Structure Headcount & Role
revamp Rationalisation
MR.
Strategic HR
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BOSS 10

11. Balancing rightsizing Don’t yank the wheels off !
Revenue Support Structural
Functions Services Functions
Re-Align workforce Re-engineer Reduce dispensable .
Competence inefficient processes Retain valuable
Adopt considered Consolidate Services
Freeze Hiring
Hiring , Reduce Roles
Redesign Consolidate Reduce unnecessary
compensation operations/ locations hierarchy
Competitive Organisational Structural
Outsource / Reduce
Capability Agility
Implement multi- Competence
Right-size the
Non-core activities tasking & job sharing Expense structure
Leverage Technology
Reduce Non Performers
Consider voluntary redundancy/ retirement
Strategic HR
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12. Managing Change The Right Leadership
Company Leadership
( Led & facilitated by HR )
Identify Vision , Plan and expected Goals
Identify the suitable rightsizing choices
Determine scope of the implementation
Communicate to and Align people
Evaluate potential costs
Prepare communication plans
Prepare survivor plans
Strategic HR
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Challenges

13. Practices & Behaviours Respectful Departure
Communicate facts Complete detailed Plan well & provide
honestly Documentation notification period
Provide reasonable Treat people with Choose Right timing
severance package dignity during the year
Strategic HR
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Challenges

14. Practices & Behaviours Ensure Retention
Training
Reemphasize the Introduce efforts to Make leaders visible
company vision & enhance competence and supportive
goals & skills during rightsizing
Monitor and track Develop a culture of Create engagement
the deployment of Accountability & Events and ensure a
future plans rewards culture of Zeal
Strategic HR
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Challenges

15. Critical Success
Factors
Avoiding pitfalls
Action Strong HR Honest
Planning Leadership Communication
Proper Cost-benefit
investments Analysis
Strategic HR
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16. A live Example
Strategic HR
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17. Rightsizing example KSA :2010-2011
Automotive industry
Background Rightsizing driven by Sustained losses
Better balance sheet mngmt, Build capability , Create
Strategy
accountability , strengthen market leadership
Drive Sales Volume Focus on
Rightsizing Renegotiated
Key drivers : new Credit &
Initiatives Loans & interest
Skills , incentives Collections
Introduced New Talent
Made Roles
Optmised Org. New Comp &
Redundant
structure Ben structure
Unit CSI Service Functional
Trackers Inventory
Volume scores KPIs KPIs
A new
Higher unit Satisfied
Outcomes Profits business
Volume customers
Strategic HR unit 17
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18. Limiting Risks
Optimising Strengths
A Quick Summary
Strategic HR
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19. Wrap Up
Winning Likely
Quick Summary
Potential Risk
StrategiesStrengths
There are several areas for rightsizing-
Emotional Process
choose most appropriate Efficiencies
costs
Ensure proper due diligence for short-&
Process Optimised
long term associated costs .
disruption Structures
Strong Leadership is key to achieving
Re-tooling Capability
desired rightsizing benefits
Costs bandwidth
Best practice behaviour will ensure
Organisational Higher Cash
talent retention and performance Culture
Stress flows
Strategic HR
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20. Strategic HR
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