Gulf CEOs need to focus on their corporate strategy for responding to an economic upturn – rather than concentrate on cost-cutting in the current downturn, according to Dr Michael Jarrett, an expert in organisational change.
Dr Jarrett, Adjunct Associate Professor of Organisational Behaviour at London Business School, urged executives to learn from the mistakes of the 1980s, where so many jobs were made redundant that organisations were unable to take advantage when circumstances improved.
He said: “What I would urge Gulf companies to do is to ‘take your people with you’ – that is, don’t allow the staff that are left behind after redundancies to feel guilty for still having a job. You need to regroup and engage all your stakeholders – and this is just as important as making cuts.”
Dr Jarrett will deliver the Business Insight Lecture in Abu Dhabi on March 30. It is organised by London Business School’s Executive Education department.
“Overall, the economic downturn presents a great opportunity for innovation and collaboration. Gulf companies should look at creating new partnerships, outsourcing potential, and creating opportunity and dialogue – while remembering to leave themselves equipped to capitalise when the markets revive.”
The author of Changeability has worked with more than 5,000 executives in 25 business sectors and his presentation will include a number of global case studies. It will be his first public appearance in the Gulf following consultancy and research projects in the region.
Also speaking at the event is Rory Simpson, Associate Dean of Executive Education, at London Business School. Simpson explained that cuts to training and development – often the first to be made in an organisation – are unlikely to lead to benefits in the short- or long-term.
Simpson said: “Compare the cost of training existing management with recruiting new senior executives: outsiders are expensive to bring in to an organisation, and also tend to bring about a period of uncertainty.”
