Lay Offs, Restructuring and Downsizing: Keeping Everyone's Dignity and Respect Intact

I resently bought a package of massages from a local medical spa. There was a substantial saving to be had by purchasing them as a pre-paid package. I'd done this serveral times over the past few months and was pleased with their services. Imagine my surprise when I got a phone call from my massage therapist informing me that the spa was closed suddenly. All the furniture, records and products were moved out over the weekend and the doors were locked. A note on the door informed customers that the spa was permanently closed and they would be contacted regarding any outstanding pre-paid packages. These pre-paid packages ran into thousands of dollars for some customers.

I haven't worked as an expert in downsizing and restructuring in a number of years, yet my mind quickly noted the mistakes that this small, local business had made and the affect on the people they employed. I found out that each one of them had simply received a phone call from the spa's owner and they were told not to come to work because the spa had closed its doors. While they received their final paychecks, it was with sadness, shock, fear, anger and feelings of betrayel that they left their jobs at the spa.

How did the spa owner feel? She was scared, embarassed and was actively avoiding any kind of contact that could result in a confrontation. And the customers, like myself? I also was angy, annoyed and betrayed. I have no respect for the owner and her partner. I would never go to any business venture they might open in the future.

So where am I going with this? There's no dobt in my mind that the closing of this business could have been done differently and all the people affected would have had a positive view of the spa owner, her partner and her business intergrity. it would have left open the possibility of community support for any business they might open in the future.

I worked with major corporations over the years where I developed ways to make impact of downsizing much easier for the organization. This includes the employees, managers, executives, customers and companies that do business with the organization. It requires a lot of negative energy to fire people. The key is to turn the negativity into positive energy that not only carries the organization through its difficulties, but helps it recover quickly and become the efficient, profitable organization it wants to be.

Check back tomorrow for the next article in this series. It will be well worth your time.