Can Product Elimination Support Post-Downsizing Success Aspirations?

Abstract

Organisations implement downsizing to overcome difficult and uncertain trading conditions, reduce complexity and gain strategic fit. Academic theory tends to focus on the human resource implications of downsizing. Whilst such articles may acknowledge the role of product elimination, there is limited understanding of either how it can be accomplished or of the customer retention benefits that may be derived. Service deletion theory promotes the use of partial or full elimination strategies as a means to gain positive outcomes. This study utilised interviews and questionnaires to examine product elimination success in the UK financial services industry. It identified that customer retention could be achieved post elimination if the desire to accomplish this was built into the removal process. The implication is that strategically aligning the objectives and implementation of a downsizing activity is more likely to result in positive elimination outcomes that can support the company's longer-term commercial objectives.