• support@bizmanualz.com
  • Home
  • Contact Us
  • About Us
  • Help
  • My Account
Policies and Procedures SOP Manual Template WordPolicies and Procedures SOP Manual Template WordPolicies and Procedures SOP Manual Template WordPolicies and Procedures SOP Manual Template Word
  • Policy
    Procedure
    Manuals
    • CEO 9-Manual Set-45% Off
    • CFO 5-Manual Set-34% Off
    • Policy Procedure Software
    • Accounting Manual
    • Finance Manual
    • IT Policy Manual
    • HR Policy Manual
    • Sales Marketing Manual
    • ISO 9001 Quality Procedures Manual
    • AS9100 D Quality Procedures Manual
    • ISO 22000 Food Safety HACCP Manual
    • Production Operations
    • Medical Office Procedures
    • Nonprofit Procedures
    • Construction Procedures
  • Best
    SOP
    Software
  • Free
    Procedure
    Samples
  • How To
    Business
    Articles
    • Save Time Writing Procedures
    • Write Better Policies
    • Writing Procedure Manuals
    • Write Better Procedures
    • Strengthen Your Financials
      • Set Better Objectives
      • Tighten Accounting Controls
      • Improve Company Governance
      • Simplify Compliance
      • Reduce Business Risk
    • Improve Quality
      • Obtain ISO Certification
      • Make a Process Map
      • Implement ISO Quality
      • Improve Quality
      • Improve Management Systems
      • Increase Customer Satisfaction
      • Make Your Business Lean
      • Making Change Easier
    • Solve Business Problems
      • Organize Your Business
      • Business Startup
      • Be a Better Boss
      • Empower Employees
      • Grow Your Business
      • Find Business Improvements
      • Increase Innovation
    • Improve Business Processes
      • Better Sales and Marketing
      • Better Project Management
      • Improve Business Communication
      • Improve Internet Marketing
      • Improve Your Hiring Process
      • Improve Your Social Media
      • Improve Your Training
      • Improve Employee Health and Safety
      • Better Disaster Security Planning
    • Leverage Technology
      • Automate Policy Management
      • Improve Your Social Media
      • Increase Productivity
      • Analyzing Business Data
  • Lean ISO
    Consulting
    Training
    • Improve Your Training
    • Customer Testimonials
    • ISO 9001:2015 Classes | Internal Auditor Training St Louis MO
    • ISO 9001:2015 Classes | Lead Auditor Training St Louis MO
    • ISO 9000 Help | Lean Consulting Training St Louis MO
    • ISO Writer | Writing Policies and Procedures Training Class
    • Lean Training Class St Louis MO
    • FREE Quality
      Audit* Offer
0

$ 0.00

✕

What Is the Iron Law of Layoffs?

Categories
  • Find Business Improvements
Tags
  • law
  • layoffs
Layoff Iron Law

If your business starts to improve too fast, you will have no choice but to lay people off. What is the Iron Law of Layoffs?

Law of LayoffsThe Iron Law of Layoffs

Using quality tools like lean thinking, six sigma, or theory of constraints has proven that you will release hidden capacity. Productivity will go up and waste will shrink. By now you are thinking great, that’s what process improvement is all about. But if we don’t plan on how to utilize this extra capacity, then we may just end up with no choice but to lay off some idled employees.

Improvement Trade Off

The relationship is simple, with company growth, you have to increase capacity by either adding people (scale) or increasing productivity (process improvement). The one improvement trade off is attrition. Some employees may quit or retire as time goes by.

Therefore, the equation becomes:

Improvement = Revenue Growth + Attrition

The Iron Law of Layoffs says that if change management is faster (>) than Revenue Growth + Attrition then layoffs will occur. This means that the more successful an organization is at improving productivity over its growth in revenue, then the greater the pressure is for layoffs.

Eliminate FearBalance Productivity Growth

Deming suggested that management should eliminate fear by promising job security. In order to do this management must strategically plan on how to use the capacity released and facilitate change proactively. Otherwise, the Iron Law of Layoffs will make managements promises unbelievable.

Become a Better Manager

The opposite means that if process improvement is slower, become a better manager. One way to be a better manager is to gauge your improvement efforts. If you are in a slow growth market then try working on smaller improvement efforts first. If you are in an elastic market, where customers respond to price changes, then you could use the new capacity to produce more goods at the same fixed costs and lower prices, which should increase demand.

Balance Improvement with Growth

We have seen how using quality tools like lean thinking, six sigma, or theory of constraints will release hidden capacity, increase productivity, and eliminate waste. But we must be careful to respect the Iron Law of Layoffs by keeping our improvement efforts in balance with our growth will allow us to eliminate fear and promise job security that our employees will believe.

Our next Internal Auditor class is forming now. Call for information on having your own private in-house classes today.

Share

1 Comment

  1. medi villanueva says:
    June 8, 2020 at 11:44 am

    Very interesting .
    Very wise analysis for every MSME and large businesses.
    This should be shared with different units of a company for better preparation and understanding
    of what can happen anytime the beyond COVID 19

    Reply

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Recent Comments

  • Luke Smith on What are the Benefits of Revenue Management?
  • David Marsh on What Are 10 Reasons Why You Need ISO 9001 Certification?
  • retro bowl on What Are 10 Reasons Why You Need ISO 9001 Certification?
  • Dr. Katy Jane on What Are 10 Reasons Why You Need ISO 9001 Certification?
  • Raisa Kiman on E-Mail Policy Procedure | ITAD108

Get to Know Us

About Bizmanualz

Our Customers

Our Contributors

Featured Products

Business Manual Products

OnPolicy Procedure Software

FREE Policies and Procedures

Privacy Policy

FAQs

Risk Free Guarantee

Process Improvement

Contact Us

Top Business Blog Posts

What is a Procedure?

What are Policies and Procedures SOPs?

What is the Purpose of a Procedure Manual?

What is the Difference Between Policies and Procedures?

How to Create a Standard Operating Procedure

What are the Top 10 Core Business Processes?

Are Procedures the Same as Work Instructions?

What Business Policies Does Every Company Need?

How to Start Writing Policies and Procedures

Business Procedures

Accounting Manuals Template

Finance Procedures

HR Procedures

IT Policies and Procedures Templates

Sales Marketing Procedures

Quality Assurance Policy Statement and Procedures

Medical Office Procedures

Employee Handbook Manual

Aerospace Procedures

Food Safety Procedures

Security & Disaster Plans

Production Procedures

Procedure Writing Guide

Featured Manuals

  • St. Louis ISO auditor training class ISO 9001:2015 Classes | Lead Auditor Training St Louis MO $ 2,395.00 – $ 3,270.00
  • Standard Operating Procedures (SOP) 9-Manual CEO Company Policies and Procedures Bundle | Save 45%
    Rated 4.29 out of 5
    $ 2,495.00 $ 1,997.00
  • Alt Text CEO Bundle and Document Management Software Package $ 2,495.00 $ 1,857.21
  • CFO Responsibilities Financial Accounting Procedures 5-Manual CFO Internal Control Procedures Bundle| Save 34%
    Rated 4.58 out of 5
    $ 1,695.00 $ 1,497.00
  • AS9100 D Quality Procedures Manual AS9100 Quality Procedures Manual | ABR217M Aerospace Quality Procedures Manual $ 595.00 $ 499.00
Copyright ©1999-2023 Bizmanualz, Inc. All Rights Reserved | Sitemap | Privacy Policy
0

$ 0.00

  • Home
  • Contact Us
  • About Us
  • Help
  • My Account
✕

Login

Lost your password?

Create an account?