What is Rightsizing?
Rightsizing is a generic term often used to describe the process of adjusting the organisation size and structure to meet the future needs of the Organisation, and improve its overall performance in the future. It may be about expanding or reducing capacity or capability but what it always means is change for the stakeholders
However sometimes Rightsizing is a term used to soften the message that an Organisation is Downsizing, which is only one unfortunate outcome for some organisations. We need to consider every application of Rightsizing and managing these changes.
Drivers to consider Rightsizing?
- Under or Over Capacity
- Change in Market Dynamics
- Public Sector Reform
- Business Model change
- And many other…
Change Management Relating to Rightsizing
Rightsizing usually is aligned with many different changes, such as changes in structure, job roles, Re-organisation, Re Deployment, Redundancy, New teams, New skills and New processes. All will have an impact on the systems and human systems within the Organisation.
Change Management is central to Rightsizing making sure that it is done in a professional, fair and efficient manner to deliver the business outcomes desired.
Where HOMI fits in the process of Rightsizing
If we consider the three main areas that are often the main component of Rightsizing, we can understand the value a tool like HOMI can bring to the process:-
Regardless of each of the above we know that there is significant need for change impacting individuals and teams and their buy-in and support to effect the change is essential.
Understanding the current situation prior to downsizing will help inform the management and change leaders of what the most effective approach to consider will be and to select the appropriate interventions to enable the change. There are three groups that must be considered when looking at downsizing. Those who are leaving, those who are remaining and non-staff stakeholders (customers, suppliers, owners, unions, government etc.). By using the HOMI survey and Model in advance of the change management can identify the capacity of the organisation or organisation units to make the change. It is equally important to plan and manage the human system and cultural environment that exists in advance, during and after the change. What we are trying to achieve is sustainable growth in the performance and learning level of the organisation. The model helps the change manager ensure that no regression occurs, and maintains or creates momentum in its functioning and performance.
Up sizing is an equal challenge that can upset the balance of an organisation whether intended or unintended, the introduction of new staff, structure and process as part of an expansion carries its own risks. Using the HOMI diagnostic survey can establish the organisations capacity to handle the change and growth and identify interventions that will enable more rapid growth and the integration of new staff. In particular it can identify strength in Organisation maturity to be preserved and also areas that have lower learning levels, this enables both the profiling of new staff to assist fill gaps and also a program of interventions that the new teams can under-take to create sustainable improvement.
Restructuring covers a multitude of changes that the organisation may want to implement to adapt to a new situation, or create the flexibility to respond and change. It can cover a range of changes in resourcing models, moving fixed staff (permanent or permanently assigned) to Variable (available at short notice for new and different assignments). Though the overall capacity of the Organisation may not change the structure, process, roles and management approach may change to create a rightsized, right-model environment. The use of the HOMI diagnostic will aid in determining the capacity to change, interventions to enable readiness, interventions to build sustainable growth during and after the change.