Do you remember lining up dominos on their ends on a table as a kid? Remember the snake-like lines of dominos you so carefully built? Remember pushing the first one over and watching the wave of dominos falling one after another only to have the chain stop when one domino failed to fall? Business layoffs are something like that. When a major player falls, the consequent layoffs travel from firm to firm until someone remains firm and continues to stand. That someone can be you.

Let’s begin with the fact that you see layoffs in your firm’s future; maybe not right now, but soon if the economy doesn’t pick up. Layoffs not in your future? You may be just wishing! Your domino may be pretty far down the line, but when those firms supplying you fail, what do you do?

You need a process that considers layoff potentials and the decisions you need to make right now. Who should participate in the analysis? Should all levels of management participate in the plan, or just upper management? What rules should you follow? Are there any guidelines?

If you can even consider the consequences of such a move, you may have already won the battle! All firms, consumer-sensitive or not, should be continually testing their market for downturns, and then react as you are doing. In fact, it would not be a bad idea to have a strategic downsize plan to match a strategic growth plan. Here are four techniques which could make the difference between you or your competitor coming out on top.

TEAMWORK
Begin immediately to build a downsize team using only your top-level management. Why only top management? First of all, it is their job. Second, they will be able to view changes without proprietary feelings that it is only their program being changed, reduced, or eliminated. Input from your front-line employees on products and services wanted or needed by customers is important to the down-size decision making; but these same front-line people have a focus on job protection, not job necessity. You might also consider use of an outside consultant.

START WITH THE CUSTOMER
A customer analysis is critical. The team should ask questions like: “What products and services are our customer and our customer’s customers buying? Are we carrying a product just because it rounds out the product line?" When you have the facts, begin working backwards. Address the company functions that are necessary to support the products your customers are actually purchasing. The benefit of this analysis is the uncovering of company services still around which were put into place in response to a long-forgotten need. You may also find internal functions which could be performed at less cost by outside vendors.

TRAVEL
I know. Travel is expensive. So is losing a customer base! Senior management should visit all major customers with the aim of firming or developing long-range contracts beneficial to both parties. Help your customers to remain as a standing domino. Senior management should also contact key suppliers to arrange for extended credit lines which will protect both their sales and your purchases. Immediately start building a cash reserve so you can take advantage of future opportunities denied to your cash-poor competitors. Share these tactics with your customers.

DANGER CLUES
(1) Act quickly but don't over-react. When you discover areas that requires downsizing only topple a few of your dominos at first. A small amount of downsizing at the beginning can save the product line, too much and you could lose the company. You can always increase the action if conditions warrant. Over-reacting at the beginning could catch you short if the economy begins to pick up. (2) Don't make general across-the-board layoffs. This cuts all areas without regard to customer services, and may cause considerable damage to your company's ability to service the customer. (3) Don't cut R&D. In fact, this may be the ideal time to start development on new customer products so you can have them ready to market when things turn up. (4) Don't panic. For you, the downturn may be small, or short, or may not happen at all. Keep your domino standing.

(NOTE TO EDITORS: PLEASE INCLUDE THE FOLLOWING.) Paul Tulenko is a Small Business Success Consultant based in New Mexico. Additional tips and suggestions are available at www.tulenko.com or call (toll-free) 1-866-TULENKO.