A Case of Responsible Restructuring as Good Governance

Abstract

Company expansion shapes people’s lives by offering new opportunities in which to grow, contribute, and flourish; but company downsizing can have a lasting impact on their lives as well. How a tenure of employment ends is just as important as how it begins. Outplacement is the process of transferring talent and expertise from one company to another as a result of downsizing. When rapid strategic change requires companies to downsize quickly and at short notice, the dilemma arises of how to do so responsibly. At Swiss consumer health and beauty company NCI, Rene Renz was given less than 48 hours to develop and complete a downsizing process that would reduce headcount by more than half. His solution shows how responsible outplacement goes beyond tangible, numbers-related aspects by addressing intangible aspects, such as handling employee distress, and ultimately helping employees to embrace their future.