Business Pre-automation ] Pareto Merge ] [ Pareto-Sizing ] Self-evaluation Form ] Approach ]
Downsizing while improving the overall Pareto efficiency.

Only the paranoid survive.

Andrew Grove

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Even though downsizing is not the natural evolution trend of business it might become an indispensable rescue operation.

IT Cortex Pareto-sizing is the right alternative to down-sizing.

There are several ways of trimming down a business. The most common one consists in chopping off departments or parts of departments that contribute the least to the bottom line. Staff functions or money-losing operations are the prime targets for the ax.

The IT Cortex approach, strategic simplification, offers the benefits of "classical" downsizing by reducing significantly the operating costs but comes free of most of its undesirable effects. It is much more selective and accurate. It uses a bistoury rather than a sledge-hammer.

Whereas classical downsizing could be compared with chopping off a few big boughs off a tree, Pareto sizing consists in pruning many twigs. Much less collateral damage is made. The organization undergoing that mutation does not get wiped-out from an appreciable market segment. It is placed in a position to skim its market further but does not necessarily have to surrender its presence in it. The economy is cyclical. Better times comes after a market has shred its excess capacity. It is always preferable to selectively "unload" unprofitable customers and to discontinue unsuccessful products or services than to loose once for all a sizable market segment with all hands.

The sooner Pareto-sizing is performed, the better. If it is performed soon enough one can combine, cost reduction, efficiency increase and even diversification into related and complementary market segments.

Don't hesitate to contact us if you believe that this approach is potentially applicable to your specific situation.

IT Cortex

Business Pre-automation ] Pareto Merge ] [ Pareto-Sizing ] Self-evaluation Form ] Approach ]