Reason for layoffs ...former senior tech-leader?

 A good friend and previous co-worker whom I admire and trust, posted on LinkedIn an article, ..."Here's why layoffs keep happening and why ambitious managers are fueling them".

Since LinkedIn doesn't give me enough space to comment, I am here 😀

Good read...however, I have concerns in what I viewed. First off, the author is a "former head of analytics". Why "former"? And should there be more focus on "Advanced Analytics" and not just "Analytics"? Sorry, I don't mean to be disrespectful, but I did not read or see the core reasons why companies fall into this pit. For more on Advanced Analytics vs Analytics, read my post on The Premise of Analytics.

Analytics vs Advanced Analytics

What is the difference between analytics and advanced analytics?

There is a difference between the two, where advanced analytics uses machine learning, data mining, predictive modeling, optimization algorithms, natural language processing, and more. While analytics techniques include basic statistical analysis, data visualization, reporting, and dashboards. 

Before my career in my previous company, I was raised by Sol Price whom founded Price Club, you now know as Costco. Sol taught me a great deal about running a small or multi-billion dollar company. I retired from that company at the age of 37 because I didn't want to manage people or operations any longer, but want to spend my time managing technologies. When I started in 2000 in my last company (now retired), I delivered every project I was leading at a fraction of the time and money that others (inside, consultant groups, etc.) would spend. How did I do this? I used common sense, understand what a P&L is, and managed delivery and not just dollars.

Payroll and Benefits are up to 95% of a company's controllable expenses. You need good people who can deliver, and this takes an understanding of what productivity is, how it is managed, and a couple more simple things. My previous company had no idea  how to measure productivity, nor could it effective plan, predict, and manage human resources.

An agile team has 1 person hold the lightbulb and 9 people turn the ladder. Most large to medium size companies think they need to throw 99 people in to turn the ladder. They are NOT agile and leaders is poor.

1, 3, 5+ Year Planning

During a recent townhall, I heard a CEO say they were going start planning 3 years out. Really?!?!...maybe I took it out of context or misheard. 

The higher you are in the company food chain, the more planning needs to be done (5, 10, 20 years out). Lower in the chain (SVP, VP) of command should be viewing those plans and planning 3, 5 years out), and the next level (AVP, Exec Directors) should be planning 1, 3 years out.

Plan for Delivery Results

Plan for delivery results and not dollar results. If the "deliverable" is planned to lead for high revenue or lower expenses, dollars should fall in place during and through delivery.

Why was I successful in everything I did?

1. I used repeatable and defined processes and practices
2. I did planning without analysis paralysis
3. I did Causal Analysis in planning and delivery results, which lead to process improvements
4. I asked the right questions (the premise of *analytics)
   *note: Analytics means 'asking questions on data'.

Measure Success and Failure Fast!

If a company is truly "Agile" then measurability should be natural. However, I have not seen an Agile Company of any size yet.

Costco, formally Price Club, is successful for two simple and primary reasons. We started with the 6 Rights of Merchandizing and applied the KISS Principle.

The KISS principle, often expressed as "Keep It Simple, Stupid," is a design principle that suggests simplicity should be a key consideration in systems, products, and processes. It encourages keeping things straightforward and avoiding unnecessary complexity.

Apply KISS to effective Agile Methodologies and there is a greater chance for success. There is also a greater chance to address failure earlier in the planning and delivery stages/phases.

Only keep those that deliver

In hiring, there is something called the probationary period. This is where you have a timeframe in which to release those that are not capable of meeting expectations. This applies to any level in the 'food chain'.

Do NOT Promote Good Employees just because they are "good" or "great".

Just because someone is Great or Good at what they do, doesn't mean they are a Great or Good Leader. A Great Employee is great because they can think, perform, and do for themselves.  A Good or Great Leader is someone that can make Good or Great Employees. 

I promoted many people that were mediocre because I saw leadership qualities in them. Some of them are very successful leaders today. I have also been asked by my leadership to promote Great Employees, whom not only failed, but quit the company due to despair. We not only lost a leader/supervisor, we lost delivery opportunities and a great human resource.

Conclusion at this point

If payroll and benefits are the major factor in your controllable expenses, where "control" is the keyword, then the major focus should be on planning and managing human recourses. Throwing more people and money at a project or initiative, doesn't mean success in any means. It's like throwing a handful of darts at the board hoping one hits the target. And most companies tend to play "pin the tail on the donkey" before releasing the darts.

In today's technologies, we can use analytics and advanced analytics to see "what is happening", "why it is happening", and then "predict what will happen". From there you can steer and control better decisioning.

If a company has to lay-off employees, maybe that company and/or board of directors, should consider laying off the leadership first. You know, the leader that failed to deliver, hired too many incompetent people, failed to be agile, failed to understand the analytics in their organization or company...I am going to go on mute now 😜