| When should a company consider change | | | | again change the management and that way all the |
| management? Most would say when the | | | | layoffs that occurred can be blamed on the previous |
| management is unable to perform up to the optimum | | | | management. |
| level that is required to maintain shareholders' equity | | | | This allows the new management with a clean slate |
| and quarterly profits. But when it comes to leadership it | | | | and record with the employees so that the employees |
| is much more than that and to that point let me discuss | | | | will respect their leadership and follow their guidance. It |
| one of the major times it is important to consider a | | | | also pleases shareholders who may have seen a drop |
| change management situation for the upper executive | | | | in stock price, giving them something to look forward |
| management. | | | | too. |
| Often when a company is going to lay off many | | | | Now that let's take a case study with Dell Corporation |
| employees, it may be necessary to bring in a new set | | | | in 2006. Currently they are laying off over 4000 |
| of corporate executives. Once the layoffs are | | | | employees and after they're done laying off all these |
| completed many employees may feel that they no | | | | employees the remaining employees may no longer |
| longer trust the Company or the leadership and that in | | | | trust the management and therefore it is necessary to |
| the future they may lose their jobs as well. To alleviate | | | | consider a succession plan to begin after the layoffs. |
| some of this concern it may be necessary to once | | | | Please consider this strategy in 2006. |