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Does retrenchment/downsizing really solve financial crisis?   Message List  
Reply | Forward Message #724 of 742 |
Re: [kmam] Does retrenchment/downsizing really solve financial crisis?


Hi All,
I'm sorry for butting in but I am finding this discussion too interesting to resist. But before I offer my humble opinion, may I just say that Mr.Abdul is extremely erudite in his words and his comments gives space to much contemplation and thinking that is very healthy for the intellectual train of thought.

I am particularly interested in Mr.Abdul question in 'who does KM help'. But I digress. I agree whole heartedly that in times of crisis, most organizations opt to cut (first) learning budgets and then headcounts. This in itself handicaps any potential manouvering to manage knowledge, what more to even explore the possibilities of tangible results. But big companies have it easy - for every one that leaves, there is possibly a hundred more is willing to take his/her place and usually with a cheaper remunation package and better work ethics. What about the smaller lesser known organizations that cannot afford the glam and monies of global names? We don't need to be soothsayers to prophecies on their fate.

Now this is where I have to say KM can come in. If well implemented, I beleive KM acts more like a grid than mere cables as, a strategic and tactical KM system encompasses every other process that is driven by knowledge and people and in knowledge intensive economies like today that means almost everything. I think the problem we face is that KM is still being seen as a stand alone approach that merits its own people, culture, process and ROI. But in the bottom line driven business world, only dollar and cents count not really how it is accumulated in the first place.

Let me illustrate with an experience I recently had. I managed to visit a GE floorshop and listen to some presentations on how its management operates. And in summary GE achieves more with less. They managed to reduce 50% cycle time as compared to previous administration with almost 50% less number of employees. And this year the KPI is earmarked to reduce another 10% in cycle time with (I hope) same number of people.

This is an incredible feat (well for me at least) as somehow GE has been able to utilize learnings and knowledge to benefit fewer people to do more things. Sure they do not openly call it KM but rather Six Sigma, Supply Chain Improvement etc but the fact of the matter is none of this can be achieved without effective management of knowledge. There is no automation involved rather the focus is on ensuring the right people attain the right knowledge at the right time to produce (tangible) economic benefits. What more can KM actually be about than this?

So my take on who benefits from KM is everybody. Organizations get more with less when knowledge is utilized and individuals specialize in certain knowledge that is crucial in our niche centric world of today. This global downturn is really a boon for KM, because now we have ample opportunity to show that when knowledge is managed more can be done with less and the tangible business results will follow.


--- On Wed, 3/25/09, ahalim@... <ahalim@...> wrote:

From: ahalim@... <ahalim@...>
Subject: Re: [kmam] Does retrenchment/downsizing really solve financial crisis?
To: kmam@yahoogroups.com
Date: Wednesday, March 25, 2009, 1:21 PM

Hi Hulwana,

I think your concerns are common nowadays.

When the economic crisis hits, capitalism rears its ugly head. Cost
cutting is seen as the only way out and probably it is. And the most
convenient thing to cut is workers. It is easier to see how much each
worker costs and so retrenching people will give an almost immediate
picture of how much cost reductions the company can enjoy. Just reduce
your pay-roll totals! It is more difficult to measure how much benefit
accrue from each worker so it is more difficult to determine just how
much the company loses when it let go of each worker. KIMers knoiw it
is knowledge walking out the door.

I don't think Shell is experiencing much pain at the large-scale,
global level. Like other big companies, they have a good training and
re-training scheme in place. So workers come and go.... in an economic
crisis such as this, it is the employer's labour market. Companies are
also taking advantage by cutting salaries and benifits as well as
formulating more draconian terms of employment.

As to how KM can help. The real question is help who?

Abdul

Quoting Hulwana Mohd Labib <hulmdl@yahoo. com>:

> Many organizations nowadays look into ways on how to reduce their
> operational cost. Some opt for retrenchment or VSS (Voluntary
> Separation Scheme) for the staff. Some even closed down few
> unprofitable departments. Our firm is looking into downsizing the
> physical size of most of the departments as one of the
> possibilities.  But we not sure what will happen once the economy
> recovers. Is the downsized space remains or it will again expand?
>
> Shell learned the pain of catching up with the human resources they
> have lost as a result of 1997 financial crisis when many of their
> technical staff were released as the effect of cost cutting
> operation. And until after 10 years, they are still trying to
> recover the losses. Some they managed to pinch back from the
> competitors, but most decided not to rejoin. They learnt the pain of
> rebound, something which they decided not to repeat during this
> current economic slowdown.
>
> But what are other solutions that organizations/ firms/companies can
> look into to reduce their cost besides these? How about paycut and
> less benefits for directors/partners? Can KM interferes and helps
> in? But how?
>
>
>




Mon Mar 30, 2009 4:34 am

far_man11
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Message #724 of 742 |
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Many organizations nowadays look into ways on how to reduce their operational cost. Some opt for retrenchment or VSS (Voluntary Separation Scheme) for the...
Hulwana Mohd Labib
hulmdl
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Mar 23, 2009
8:07 am

Hi Hulwana, I think your concerns are common nowadays. When the economic crisis hits, capitalism rears its ugly head. Cost cutting is seen as the only way out...
ahalim@...
gpteachercool
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Mar 25, 2009
5:32 am

Hi All, I'm sorry for butting in but I am finding this discussion too interesting to resist. But before I offer my humble opinion, may I just say that Mr.Abdul...
Faroze Nadar
far_man11
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Mar 30, 2009
4:34 am
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