Wednesday, April 15, 2009

Down-Sizing vs. Right-Sizing

Now more than ever I hear CEOs, sales managers and other key decision-makers talking about either Down-Sizing or Right-Sizing their business. More often than not, they use the terms interchangeably.

While that might be understandable, it will be a real serious mistake if you think you are doing one, and you're actually doing the other. With the economy affecting your business today unlike any time in my 32 years in the business world, it is essential that you know the difference between Right-Sizing and Down-Sizing.

Down-Sizing is when you are cutting back, letting go, getting rid of, and eliminating resources, tools, assets and people because your business has suffered a setback or change that cannot support the level of overhead you've structured in the recent past.Right-Sizing is a totally different concept.

Right-Sizing is what Jim Collins referred to in his book Good to Great as getting the right people in the right seat on the bus. In a recession, a time of downturn, a time of change, a time of pressure on sales and bottom-line profits, there couldn't be a better time to Right-Size your sales force.

Whether you're Down-Sizing or not, you should be focused on Right-Sizing. Many times in the midst of Down-Sizing, it is also the perfect time to Right-Size. Now more than ever is the opportunity to remove the slow, low producers and replace them with the most aggressive, most professional, best-trained and highly-compensated salespeople.
(Source: Sales consultant/strategist Ken Edmundson.

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