Downsizing the multinational firm : key variables for excellence

Major downsizing efforts are now taking place in multinational business firms in virtually every corner of the world, despite the economic recovery that seems to be occurring in many countries. Those multinational firms that have been turned around most effectively through downsizing activities have based their decision making on a foundation of creative excellence and strategic leadership. The keys to organizational excellence in the downsized workplace centres on four variables – care of customers, constant innovation, committed people, and management leadership. A research study conducted by the authors has focused on leadership strategies followed by managers directing successful downsizing efforts in multinational firms. These strategies are: attention through vision, meaning through communication; trust through positioning; and confidence through respect. Each of these downsizing leadership strategies is discussed with some depth of analysis.