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Change Management


The toughest challenges in management

Downsizing, Redundancy, Delayering, Restructuring - these are the toughest tasks you will ever face in management. It is vital you manage them well. Effectively, fairly and with a clear idea of outcomes.
Sometimes referred to as 'No fault' terminations are often the hardest on the business owner as terminating good staff for the sole reason of a downturn in work is emotionally hard.

There is a recognised fair process of consultation in good faith which is required to be followed prior to any decisions being made on restructuring or redundancies, and this guide steps you through that providing templates and letters to keep the business legal and safe from successful grievances.

When times get tough in business and change is forced, don't open yourself up to personal grievances and further risk the company's viability. Get your process correct from the outset, and follow our guide.

The contents of the book Change Management follow:


INTRODUCTION ................................................................................................................. 4
WHY CHANGE? ......................................................................................................... 4
WHAT OPTIONS ARE THERE FOR CHANGE? ................................................................. 5
PROCESS ......................................................................................................................... 5
PLANNING ........................................................................................................................ 5
A PLANNING OPTION - FORMING A PROJECT GROUP.................................................... 6
A WRITTEN PROPOSAL ..................................................................................................... 7
CONSULTATION ................................................................................................................ 7
MAKING GROUP ANNOUNCEMENTS ............................................................................. 8
INITIAL MEETING TO PRESENT THE PROPOSAL............................................................. 8
THE SECOND MEETING .............................................................................................. 8
THE FINAL MEETING .................................................................................................. 8
LISTENING TO THE EMPLOYEE .................................................................................... 9
ANTICIPATING REACTIONS .......................................................................................... 9
HANDLING ABSENT EMPLOYEES ............................................................................... 10
THE TIME FRAME ............................................................................................................ 10
AGREEMENT IS NOT NECESSARY ..................................................................................... 10
CHANGE OPTIONS .......................................................................................................... 10
RETRAINING ............................................................................................................ 11
REDEPLOYMENT ...................................................................................................... 11
RELOCATION ........................................................................................................... 11
REDUNDANCY ................................................................................................................. 12
JUSTIFICATION ........................................................................................................ 12
PROCEDURE ........................................................................................................... 13
THE COSTS OF A REDUNDANCY ................................................................................ 14
UPDATING AND RENEGOTIATING EMPLOYMENT AGREEMENTS ........................................... 14
SALE OF THE BUSINESS .................................................................................................. 15
VULNERABLE EMPLOYEES ............................................................................................... 16
SELECTION ..................................................................................................................... 17
VOLUNTARY REDUNDANCY ....................................................................................... 17
LAST ON FIRST OFF ................................................................................................ 17
ATTENDANCE .......................................................................................................... 17
DISCIPLINARY RECORD ............................................................................................ 17
PERCENTILE CUTS ................................................................................................... 18
OUTSOURCING OF ENTIRE DEPARTMENTS ................................................................ 18
SKILLS .................................................................................................................... 18
QUALITY ................................................................................................................. 18
CAPABILITY ............................................................................................................. 18
JOB KNOWLEDGE .................................................................................................... 19
FLEXIBILITY / ADAPTABILITY ...................................................................................... 19
POTENTIAL AND ATTITUDE ........................................................................................ 19
CHALLENGES .......................................................................................................... 19
IMPLEMENTATION ............................................................................................................ 20
MANAGING EMPLOYEES DEPARTING THE BUSINESS ................................................... 20
MANAGING EMPLOYEES STAYING WITH THE BUSINESS ............................................... 21

DEALING WITH QUESTIONS ....................................................................................... 22
DEALING WITH HOUSEKEEPING ................................................................................. 23
LEAVER CHECKLISTS ............................................................................................... 23
EXTERNAL CONSULTANTS ........................................................................................ 23
APPENDIX A THE COST OF A REDUNDANCY .................................................................... 25
APPENDIX B CHECKLISTS FOR MANAGERS ..................................................................... 26
APPENDIX C EXIT CHECK LIST ....................................................................................... 27
APPENDIX C EXIT CHECK LIST ....................................................................................... 28
VEHICLES ................................................................................................................... 28
TELEPHONE CALLS AND INFORMATION TECHNOLOGY .................................................... 29
CONFIDENTIALITY ........................................................................................................ 29
APPENDIX D SAMPLE LETTERS ...................................................................................... 30
SELECTION CRITERIA MATRIX ....................................................................... 33
LETTER OF NOTIFICATION FOR PROPOSED CHANGE/REDUNDANCY ...... 34
LETTER FOR FURTHER CONSULTATION ...................................................... 35
LETTER CALLING FINAL MEETING OF REDUNDANCY PROCESS ................ 36
LETTER OF CONFIRMATION OF EMPLOYMENT ............................................ 37
NOTICE OF REDUNDANCY ............................................................................. 38



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