Right Sizing in Recessionary Times

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REmatrix Interview Series with Forbes J. Rutherford, President of Rutherford International Executive Search Group Inc. on Right Sizing and Cost Management in Recessionary Times

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December 27, 2008 – Toronto, Canada

Topic: Right Sizing In Recessionary Times

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Is there a formulaic response to rightsizing in a recession?

Forbes Rutherford
Most companies, especially in real estate – whether it’s the manufacturing, servicing or transacting of real estate fail to recognize the hard reality that gravity does exist in finance and that market cycles by definition – do cycle. The failure to recognize this reality generally results in a reflexive management response, which often has the earmarks of a formulaic response.

To be frank, it depends on the leadership, the level of uncertainty relative to market circumstances and the degree of financial hemorrhaging. According to a Bain Consulting study as reported in the Harvard Business Review, there are three types of executives one might observe in the face of an impending recession. The first type was “over-confident and likely to under-respond; the second was “under-confident and likely to over-respond,” while the third type was likely to respond to an approaching recession in a “balanced” fashion.

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How do you recognize the “over confident and under-responsive” executive?


Read the complete version of the interview at: http://rematrix.com/careers/careers_09sum-let-1.html