It's natural for CEOs to want to devote lots of attention to profitability and to make tough decisions while doing so. But dropping the workforce doesn't immediately equal an increase in productivity.
Writing for Chief Executive.net, contributor Matthew Eatough acknowledges firing for promises of greater profit as a tactic that CEOs with less executive experience might overestimate, much to their company's overall detriment.
Instead, major executives need to be mindful of the consequences of their dismissals and ensure they are based on the greater good of the company. This can be lost when other forces, including the chief executive's own personal agenda, take precedence over procedure.
This can be seen in the news today. Disney Interactive, a subsection of the popular entertainment company, may begin layoffs in the hundreds soon, according to the Los Angeles Times, a measure that seems to be in response to the company's recent losses.
It's not just about taking out with the old: without the new to replace it, there's no guarantee of improvement. The CEO responsibilities that a business leader takes on should include dutiful observance of this very serious decision, in order to understand all of the ways that their company might react once the old force is gone.
You might not be able to see the future, but your company would do well to have a CEO with a sense of foresight. YES Partners can filter out candidates to find those who might be more mindful of this.
Finding people is easy, but finding the RIGHT people is not. YES Partners helps companies FIND the right people – for all company functions, across many industries and globally.
