Experts Available: Hay Group Advises Companies to Take the Bull by the Horns if They Are to Survive

Business Wire, Oct 2, 2008

Darwin's Theory Plays Out in Current Market Crisis

PHILADELPHIA & LONDON -- Just how 'fit' is your organization? Many are now finding out - the hard way - as recent upheavals in the finance sector cause a ripple effect on economies globally and employees are beginning to fear for their jobs. Some will inevitably succumb, say two senior consultants at Hay Group, a management consulting firm.

"The temptation to downsize and reduce headcount is an immediate reaction that Hay Group sees many clients adopting," says Michael Hill, a London-based Hay Group consultant. "We advise caution when taking such a short-term view as it could ultimately cost the company more in the long-term when the market picks up again," says Hill. "The question is what to do in the meantime to make sure that your company is in the best shape possible to maintain business stability - at the very least."

"Having an effective organizational structure in place is all the more crucial for companies to ride out the current economic storm," adds Matt Gurin, a Philadelphia-based Hay Group senior consultant. "Organizations that are not operating at maximum efficiency will struggle to last if their operating model and internal processes are cumbersome, or that duplicate efforts resulting in delays in reacting to customer needs," Gurin said.

Gurin added, "It is imperative to understand what is nice to have and what you need to have to serve your customers. Cutting jobs and people without these insights could come back to bite you, and overlapping accountabilities and cumbersome governance will slow you down at the time you need to be nimble."

Hay Group's experts say it is very much a case of survival of the fittest -- those who have delayed and procrastinated about revamping their organization will feel the pain now. Realigning business strategy and operating models gives an opportunity to create leaner organizational structures.

Michael and Matt suggest two questions to consider to help improve efficiencies:

* Is there overlap in processes that could be streamlined to improve agility?

* What is getting in the way of making decisions?

According to Hill and Gurin, keeping the focus on the practical running of the business at ground level is a must. Implementing decisions based solely on the financial savings to cut costs will eventually have an impact on the performance of the workforce and in turn, the customer.

To arrange for an interview of Michael Hall or Matt Gurin, please contact Mitch Kent at 1 215 861 2315 or mitch_kent@haygroup.com

About Hay Group: Hay Group is a global management consulting firm that works with leaders to transform strategy into reality. We develop talent, organize people to be more effective and motivate them to perform at their best. Our focus is on making change happen and helping people and organizations realize their potential.

We have over 2600 employees working in 87 offices in 47 countries. Our clients are from the private, public and not-for profit sectors, across every major industry. For more information please contact your local office through www.haygroup.com.