Recently a colleague made a comment to the effect that "We didn't layoff the person, we just eliminated their position" which got me to reflect on all too frequent occurrence of RIFs - reduction in force. We see it in the headlines, we hear it from friends and family, we see it in our own companies and sometimes we are affected directly. It is most often driven by economic necessity and sometimes due to a shift in corporate strategy or investment. Corporate retrenchment is a reality that has become all too real.
The reality of RIFs also comes with the challenge of needing to deal with the trauma of impacting someone's life and/or being impacted which inevitably leads to feelings of guilt, disbelief, fear, anger, frustration, relief, etc. Also the more often it occurs, the stronger the desire to insulate oneself from the trauma and emotions. Having lived through more than 20 RIFs in my 16+ year career, I feel it is very important to not be insulated and go through the cycle of loss each and every time.
Becoming desensitized to the trauma can have serious consequences. First on an emotional level bottling up the issues can have a longer term emotional impact. Second it results in avoiding contingency planning especially for ones own career. Third, the strategic and investment decisions aren't guided by the lessons learned. Most importantly it makes it too easy to diminish the real impact on the individual(s) being laid off. The euphemistic comment made by the colleague might make it easier accept the action but diminishes the impact on the individual and in some sense dehumanizes them.
As an individual, and especially as a manager, it is critical to understand the impact of a RIF on an individual including their career, livelihood, family, etc. to at the very least empathize and hopefully be supportive in whatever way possible. Giving them the understanding and respect they deserve is the least I can do to preserve their dignity.

Social Networks and Capital...
The cliche "It's not what you know, but who you know." seems to be more relevant in the ever increasingly connected world with web tools such as Plaxo, LinkedIn, etc. becoming ever more popular. Regardless of the tools available, "social networking" is becoming ever more important and especially given the potential of the "social capital" gained by having an extensive network. Social capital is simply the resources available in and through social (business and personal) networks including information, ideas, leads, business opportunities, power, influence, support, trust, etc. Some people have also called these shared assets.
There are those who believe in the myth of individualism in which everyone succeeds or fails on the basis of an individuals own abilties and efforts. However research, and certainly my own experience, shows that having a strong social network (and the corresponding social capital) increases the chance of getting a job, pay and promotion, influence and effectiveness, etc.
People are often surprised when the spend a little time thinking about who is in their network including family, friends, team members, employees, managers, partners, customers, admins, etc. Looking at who you interact with frequently, who are you dependent on, who is dependent on you, and who you just like hanging out with is another way to generate the list. Finally and most importantly thinking about who should be part of your network and pursuing those connections will even further expand the social network.
If you want to read more on the topic I can recommend "Achieving Success Through Social Capital" by Wayne Baker.
Posted on: Mar 30, 2006
Posted by: darrin
Category: Management
Permanent link to this entry | Comments [0] | Comments have been disabled.