How strategic layoffs can propel innovation & employee growth

When Elon Musk took over Twitter, he initiated several significant changes to the company’s operations. One of the most notable actions was the dismissal of various high-level executives and staff. Musk’s approach to reshaping Twitter involved restructuring and reevaluating the workforce, which led to a sizable number of layoffs. These changes were part of his broader vision to revamp the social media platform, aligning it more closely with his ideas about free speech and efficiency.

Now like many, I am not huge fan of Musk but his actions around the firing of what he deemed a bloated workforce amused a few people I know. The reason being that many time we too, have wondered how beneficial it would be in our work circumstances to work in debloated corporate environment in more efficient ways. In this post I propose that it is high time companies do their due diligence and revisit corporate governance model to realign their work force with the employee’s pool. There are a number of reasons I think this has become critical; I will explore three:

Clarifying employee roles and contributions.

Stakeholders transparency.

Enhanced operational efficiency.

I will unpack each separately because not doing so, not only has immediate consequences but also long-term consequences for all concerned. But first a personal experience as a people leader that gave me deep pause.

Let me put on my Rose Nylund story telling hat and begin by telling yet another story: “When I was a little girl growing up,” not in St. Olaf, but in the vibrant Creole Antillean parts of the Caribbean, my grandfather was a road builder, and he also owned a few working farms. My grandpa employed many people; everyone had a purpose and a task assigned them if you worked for grandpa — not one more or one less; he was often referred to as “efficient” because his trucks were also the first at the harbours on banana export days. And when he or his sons, my uncles were not at the farm, they were overseeing the building on roads around the island.

Customarily in my culture, road builders and farmers had one thing in common. If you were then so lucky to work on a farm or road crew, you were also provided with a full days’ meal. Given the early start to avoid the hot midday sun, crews started early with breakfast supplied by my grandfather’s other crew of hired chefs — that was their job. Even today, it is common to also see roadside setups, where women cooked full meals to ensure that all the workers were well fed, in whatever remote part of the island that grand pa and his crew were “breaking a road” or farming.

I often visited work sites, along with a younger uncle who did all the accounting, and would drive to work sites to pay everyone, biweekly. During the holidays, visiting our grandparents in the countryside, our uncles would let us cousins tag along in the back of the pickup trucks — these were some of the fun times of our shared childhood memories.

Even then, at about eleven, there was an immediate sense to me, that even while the crew was large, everyone has a specific function whether on the farm or as part of the road building crew — no one seemed to be doing nothing. Some of the workers operated large machines to break the road, some paved the road, and some finished the road, while others protected the road by controlling traffic — even the cooking ladies knew their task and would know exactly when to pack up and leave, long before the men finished work. The same was observed on the farm. In fact, grandpa, with his hardworking country roots would often say things like: “the devil will find work for idle hands.” Everyone plays his or her part.

What I learnt then is that there was a process to a well-oiled machinery for road construction and everyone knew their role. And heaven forbade, if a worker was slacking, or perpetually late or did not show up, grandpa firmly advised them to not show up at all — ever. I personally liked this and to be candid, it was not just grandpa but rather a common ethos of Caribbean work culture. If you are not going to show up on time, then just do not show at all.

Fast forward, I am an adult, now living and working in a North American corporate culture, also having led a few large teams, where everything I learnt from grandpa seems to have gone out the window. I have written about this before because it is something I will never understand.

So, what is this blog about?

Many employees, especially in the tech and corporate sector, have come to understand that a considerable part of their work is either not vital or has changed with time. This understanding was brought into sharper focus during the COVID-19 pandemic, when many of us concurrently found out that our roles were labeled ‘non-essential.’ Unpacking this insight is crucial for uncovering the fundamental reasons behind antiquated work processes — and most notably, the functionality, or lack thereof, of certain obsolete roles and why it is time to face the music about or diminished value in overly bloated organizations.

Related post: Invisible scars: The hidden trauma of being labeled ‘non-essential’

In a world of diminishing returns, in many facets of our lives, it has become critical that like companies, that individuals begin to not only understand their role, in the context of work but also see their value and if they are lucky enough, to know their life’s purpose. Here, as promised, I want to unpack the reasons I proposed earlier, why I think this in critically.

Streamlining operations in a company is crucial for several key reasons, each tied to the core objectives of effective corporate governance and operational efficiency. Further it provides opportunities for employees to sometimes find their true purpose, as opposed to being goaded by the paths that were chosen for them, given the way we are all goaded to be “productive workers.” It is evident that strategic layoffs can, in fact, propel efficiencies, innovation and individual employee growth.

How is this possible?

1. Clarifying employee roles and contributions

By revisiting and refining the corporate governance model (how work is done), companies can align their workforce more accurately with their missions and goals. This realignment helps employees understand how their roles fit into the larger picture of the business objectives. When employees have a clear understanding of their value and contribution, it boosts their sense of purpose, engagement, and productivity. This clarity benefits not just the individuals but also the company, as a motivated and purpose-driven workforce is more likely to deliver superior results. In a work environment where there is a clear definition and understanding of employee roles and contributions, several positive consequences can emerge:

Improved efficiency and productivity: When employees have a clear understanding of their roles and responsibilities, it reduces confusion and overlapping of tasks. This clarity allows employees to focus on their specific duties, leading to more efficient work processes and higher productivity. I cannot tell you the number of times I have sat in meeting with more then three people tasks with the same thing, resulting in dispersed responsibilities and unfinished work.

Enhanced team collaboration: Clear role definitions facilitate better teamwork. Employees understand not only their tasks but also how their work fits into the larger picture. This awareness helps in coordinating with team members, leading to more effective collaboration and smoother project execution. Not unlike a body with parts that do something specific, a well-run team is much the same. It also eliminates the “too many cooks” problem faced by many companies today.

Increased satisfaction and morale: Clearly defined roles can lead to higher job satisfaction. Employees who understand their responsibilities and contributions are more likely to feel valued and confident in their positions. This can lead to higher morale, reduced stress, and a more positive work environment overall.

Taken together, these outcomes foster a work culture that is more organized, collaborative, and satisfying for employees, which can also lead to better overall organizational performance. Today, as many are searching for more meaningful engagements, this is a plus, even for our long-term sense of mental well-being.

2. Stakeholders transparency

Honest and transparent communication with stakeholders is a cornerstone of good corporate governance. Streamlining operations and aligning the workforce with the company’s goals enhances this transparency. Stakeholders, including investors, clients, and partners, appreciate a clear understanding of how the company operates and how it plans to achieve its goals. This transparency builds trust and confidence, which are vital for long-term relationships and the company’s reputation in the market. And while I do not overtly cite customers as a stakeholder, they are the ones paying the cost of bloated companies. In a work environment that emphasizes stakeholder, inclusive of the customer, transparency, through honest and transparent communication, the following positive consequences can be expected:

Building trust and confidence with stakeholders: When a company is transparent with its stakeholders, including investors, clients, and partners, it builds trust. This trust is foundational for establishing and maintaining long-term relationships. Stakeholders are more likely to continue their engagement and support when they have a clear understanding of the company’s operations, strategies, and goals.

Enhanced company reputation and market position: A transparent approach to stakeholder communication can significantly enhance the company’s reputation in the market. Companies known for their transparency are often viewed as more dependable and ethical, attracting more customers, partners, and investors. This positive reputation can lead to a stronger market position and potentially open new opportunities for growth and collaboration.

Alignment of workforce with company goals: By streamlining operations and aligning the workforce with the company’s goals, transparency ensures that everyone within the organization is working towards the same objectives. This alignment is crucial for operational efficiency and effectiveness. Employees who understand the bigger picture are more likely to be motivated and committed to their work, contributing to the overall success of the company.

In both the short and long term, a transparent work environment contributes to a more trusting, reputable, and aligned organization, which is beneficial for both internal and external stakeholders.

3.Enhanced operational efficiency

A streamlined operation is inherently more efficient. By cutting out unnecessary processes, redundancies, and aligning the workforce effectively, companies can reduce operational costs, improve productivity, and respond more swiftly to market changes. This efficiency is not just about reducing expenses; it is about optimizing resources — both human and material — to achieve the best possible outcomes. In today’s fast-paced and competitive business environment, operational efficiency is not just desirable; it is essential for survival and growth. In a work environment that focuses on enhanced operational efficiency through streamlined operations and effective workforce alignment, several positive outcomes can be anticipated:

Reduced operational costs: By eliminating unnecessary processes and redundancies, companies can significantly reduce their operational costs. Streamlining operations leads to a more cost-effective use of resources, which can improve the financial health of the company. This efficient use of resources allows for reallocating funds to other critical areas, like innovation or expansion.

Improved productivity and performance: Enhanced operational efficiency directly leads to improved productivity. When employees are aligned effectively, and processes are streamlined, it minimizes time wastage and maximizes output. This higher productivity level can lead to better overall performance of the company, making it more competitive in the market.

Agility in responding to market changes: An efficiently operated company is more agile and better equipped to respond to market changes. In today’s fast-paced business environment, the ability to quickly adapt to contemporary trends, customer needs, or economic shifts is crucial. Operational efficiency ensures that a company can pivot or scale operations swiftly and effectively, giving it an edge over less agile competitor.

Streamlining operations and revisiting corporate governance models are not just about downsizing or cost-cutting; it is about building a more agile, transparent, and efficient organization that understands and values its employees’ contributions, maintains honesty with its stakeholders, and is equipped to thrive in the ever-evolving business landscape. Importantly, it is also about valuing employees, many of whom are too jaded to understand that they are more worthy. And to customers who foot the bill for overly bloated companies who continue to place band aid solutions on the inefficiencies that plague business operations. I will end by saying that as someone who has coached not only businesses, but individuals working in toxic work environment — if I had a dollar for the number of people who have confided that they are waiting for a package because quitting is too risky, I would be well off. Employees get it and many are just too tired to care.

About me: Hello, my name is Kem-Laurin, and I am one half of the co-founding team of Human Tech Futures. At Human Tech Futures, we’re passionate about helping our clients navigate the future with confidence! Innovation and transformation are at the core of what we do, and we believe in taking a human-focused approach every step of the way.

We understand that the future can be uncertain and challenging, which is why we offer a range of engagement packages tailored to meet the unique needs of both individuals and organizations. Whether you’re an individual looking to embrace change, a business seeking to stay ahead of the curve, or an organization eager to shape a better future, we’ve got you covered.

Connect with us at https://www.humantechfutures.ca/contact