While the Federal Reserve Chairman Ben Bernanke recently noted that the recession is “very likely over”, the recovery is just beginning. Many executives and business owners want to get through these changes and get back to ‘business as usual,’ and therein lies the problem. “Business as usual” has caused (or at least exacerbated) the issue, so going back may not be in the company’s long term interest.

Repopulating the company 1 for 1.

The majority of companies have had to lay off a higher number of employees than in past downturns. And now that things are turning around, they want to bring them back as quickly as possible. One reason for that desire is loyalty to the individual, and that is highly commendable. Part of it is that the manager is using an old paradigm that if sales increase X%, I will need to restaff with Y number of people. That paradigm may have been shattered.

· The tasks we do in an organization can be divided into value added [VA] (those that service the customer) and non value added [NVA] (consume resources but do not add value). Capture what is being done right now. How are you able to get it all done with a skeleton crew? What isn’t getting done? Evaluate if it ever needs to come back.

· If it needs to be done, be creative on the how and the who. Who needs to do it? Typically we have highly skilled workers doing a mix of value added and non value added work. What if you pulled most of the NVA work from them and pooled it into a less skilled (and preferably temporary) person? And how does it need to be done? Instead of adding staff, could these NVA jobs be automated? Outsourced?

· Remember the bargaining agreement if you have one. Work within it or start setting the stage for changes. The goal is to get the bulk of the people back in productive work as needed while giving them some better assurance that they are on board for the long haul. The mechanisms to redistribute the NVA tasks are up to you. Think out of the box.

· What about those employees that you couldn’t move because they knew too much or had a special skill set that the organization couldn’t live without? Now is the time to correct that by getting them to put it in writing the magic that they do. Unless, of course, you want to be held hostage again sometime in the future.

Being too slow to add resources.

· Stay ahead of the curve when adding resources. This will allow you go after the NVA activities as you identify them. You will need the extra bandwidth to follow recommendations and use this recovery time to continuously improve the organization.

· Focus on servicing your current customers extremely well. Now is the chance to delight them - you need them more than ever. Make sure the front line customer support team has the resources to do the job right. This is particularly true since you are looking to attract new customers to replace ones you may have lost. First impressions are key and may be a major differentiator for your company against its competitors.

· Some resources will take a while to get due to lead time on equipment or locating the right skill set. Start those earlier than you might otherwise to make sure they are there when you need them and that they are the best available. (First movers here will probably get a great deal on critical resources, both human and physical.)

· As you replace lost personnel, hire for behaviors first, skill set second. If the individual has the right attitude and some expertise and ability in the area, the specific nuances of the job can be acquired. It is much harder to change a person’s behavior - what you hire is what you get. If you are a first mover to acquire these individuals, you will have a greater chance to find people with both the right behaviors and the right skill set.

Conclusion to Part 1

Adding personnel to bring back the pre-recession staffing levels may not be in the companies long-term interests. The smart CEO will look to leverage their people, streamline their workloads to focus on their value-adding activities and use this growth spurt to make their company able to better withstand the rough seas ahead. And there will be more rough sailing ahead as we restructure our countries’ place in the new global economy.

Next Articles

In Part 2 of this series, we will address traps to avoid in dealing with both suppliers and customers as we bring the business back from the depths. Part 3 will deal with the new role of management and how to leverage the infrastructure for the long haul.