AFTER THE LAYOFFS,WHAT

NEXT? - BY SUZY WETLAUFER.

WHAT SHOULD DELARK DO TO REPAIR THE DAMAGE CAUSED BY A
MISMANAGED DOWNSIZING?

NAME OF STUDENTS ROLL NUMBER

• POOJALAKSHMI M. 200097
• PRAJWAL KV 200098
• PRASHANTH SHANBHAG 200099
• PRERANA P. 200100
• PUNIT VERNEKAR 200101
• RAJATH HANDE C.R. 200102

09/09/2020 HBR CASE STUDY

 INTRODUCTION
DELARKS
Midwestern clothing store
 Old fashioned, patriarchal, led by founders son.
 Recently underwent drastic downsizing.
 Shooting revenues and market share.
 Highly satisfied customers.
 Perplexed surviving employees.
HARRY DENTON
CEO
 Architect of link-selling and downsizing.
 Helped Delark’s to take a big leap in revenue of
$400 million and the accompanying 20% surge in
the chain’s stock price.
 PITFALLS

Communications problem Denton was a situational

between Denton and scapegoat.
employees.

Incapability of gaining
employees’ trust. Mismanaged layoffs.

Need of Understanding of
downsizing emotional
aftereffects before
implementation.
 THE POSITIVE IMPACTS

01
01 Layoffs were unwelcoming but the payoff
03
03 Cost – cutting measure are now in picture –
commission-based remuneration.
they received was unheard of.

02
02
Denton’s measures to the organization was
welcomed by customers – refurbished
04
04 Absence of layoffs policy in the prior
store, introduction of new products and management led to new layoff policy.
better sales associates with link – selling
abilities.
 SOLUTION

SECURE THE INTEREST OF REBUILDING TRUST BY

KEY STAFF EMPLOYEE ENGAGEMENT

DIPLOMATIC ASSURANCE TO
COMMUNICATION SURVIVING EMPLOYEES

SHARING RESPONSIBILITY
OF CHANGE
MANAGEMENT
THANK YOU