The COVID-19 crisis will force firms to transform their organizations in every way feasible – structure, roles, compensation, and employee engagement. Human capital is the foundation of every business, and a firm’s strategy. People with technology deliver processes, processes help meet customer expectations, and meeting customer expectations delivers financial results. Cedar’s Balanced Scorecard thought leadership has helped clients deliver enterprise and individual performance time and time again and is a testimonial to this.
This year, organizational transformation will need to cover all of the following:
Headcount & Payroll Reduction
There will be no choice, but headcount will need to be reduced in the 20%-30% range due to fewer transactions, and consolidation of roles. The exits will need to be managed in as humane a way as possible. This will also result in a significant reduction of payroll cost. Variable compensation will need to be maximized.
Enterprise Design & Structure
Structures will need to become lean and efficient. Vertical and Horizontal de-layering of the organization will need to happen. Span of control will need to be maximized. The structures will need to align to the new business model and strategy, and the industry it operates in.
Performers and high potential employees will need to be identified. Fully leveraging them with greater responsibility in this crisis will be a good test for them for accelerated career growth. Any gaps in your competency frameworks, succession plans will need to be closed.
The HR strategy will need to support the new transformational business strategy. This is the time for HR Heads to stand-up a deliver. This is not a role for the faint-hearted. Cedar’s HR Scorecard can help HR Heads monitor and manage the execution of the new HR strategy.
Our article on 7 steps on organizational transformation in a COVID-19 era will give you a more detailed perspective on the above.
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