rightsizing is organizational and administrative strategy technique aimed at re-adapting the company to market trends, making it possible to follow its evolution constantly.
The expression rightsizing literally means "right size", translated from English into Portuguese, and consists of the idea of building a business investment that is fully compatible with the needs of the market for the continued development of the organization.
Strategic planning based on the concept of rightsizing has as initial objective analyze market needs and trends, the alternatives of approaching other companies, technological innovations and new ideas to be applied in the sector of the organization.
The focus is to be aware of the future and make the organization able to evolve together with the market, avoiding future crises, for example.
For this, the strategist manager must act in a proactive position, leading direction plans that serve to “shape” the company's organization according to its growth objectives. In this context, some departments can be enlarged, while others are completely eliminated, for example.
Learn more about the meaning of Strategic planning It's from Design Thinking.
Downsizing and rightsizing
Many people believe that downsizing and rightsizing they are synonymous or they represent the same concept, but from different points of view. In reality, both are distinct administrative restructuring techniques.
O rightsizing acts based on proactivism, that is, on the concern with restructuring the company in accordance with the perspectives and forecasts of market evolution. On the other hand, the downsizing it has the character of reaction, acting from a certain drastic situation, such as an economic crisis, for example.
O downsizing it would be a restructuring plan used when the company is already in times of crisis, while the rightsizing aims to prevent this scenario, based on anticipated measures based on analyzes made about the future of the market.
Currently, the downsizing it is also interpreted as a negative measure, as it has become synonymous with dismissals, which causes a lot of frustration among employees.
The strategic project based on rightsizing seeks to put dismissals as the last alternative, opting for hiring freezes, reallocation of positions, offering early retirements, among other alternatives that make the process less "traumatic" for employees and executives.
Learn more about meaning of Downsizing.