Your lean activities should NEVER result in layoffs! ❌❌❌

I believe we need to address the discussion of layoffs in two completely seperate categories:

1. Layoffs that come as a result of having an extreme excess of employees due to poor company management.

2. Layoffs that come as a result of having an extreme excess of employees due to lean activities.

Regarding category #1, this is a sad but true case unfortunately. Sometimes companies find themselves in a position where they need to “right size”.

However, in the name of “respect for people” and “continuous improvement” I would first seek out alternative options.

Regarding category #2, this is absolutely unacceptable! And a clear sign of a culture of ‘Continuous Appearance.’ ***

The result can be detrimental to the organization and any future continuous improvement activities.

No matter how you look at it, research has shown that layoffs:

❌Lead to higher rates of employee burnout
❌Lead to additional increases in voluntary turnover following the layoff
❌Lead to decreased job satisfaction, organizational commitment, and job performance in survivors of the layoffs
❌Lead to decreased levels of trust for both laid off as well as surviving employees
❌Create additional costs in the long-term, such as cost to re-hire and train employees who were laid off

Could we consider the following alternatives and allow normal attrition over an extended period to make up the gap??

✅Redirect excess labor to increased sales. Expand into emerging markets. Explore production of different products.
✅Plant maintenance; landscaping.
✅Crosstraining.
✅CI promotion teams
✅Job sharing, with reduced hours. ✅Reduced income for all may beat the total loss of income for those who might be laid off.
✅Redirect labor to other areas of the business.
✅Forecasting. Can employees be carried until CI activities can improve/grow the business?

***Check the comments for a link to my book, “Avoiding The Continuous Appearance Trap.”

#lean #leansixsigma #findleansolutions #avoidtheappearancetrap

Read more of Patrick’s material at https://www.linkedin.com/in/patrickadamsii/ and