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Mgmt ERO - What would you accept?
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<blockquote data-quote="pretzel_man" data-source="post: 490935" data-attributes="member: 927"><p>Before everyone jumps to conclusions, here is some information.</p><p> </p><p>What UPS is doing today, and what Jim Casey did in the 30's are very similar.</p><p> </p><p>Jim chose NOT to cut management or salaries of our people. He said that he knew that he could, based on what the competition did. He said that he could have probably cut salaries up to 50% and only lost 10% of the people.</p><p> </p><p>Instead Jim chose to cut in other areas.</p><p> </p><p>Not dissimilar from today. In the 30's, they didn't know how long the hard times would last or how much worse it would get. They cut everywhere they could but not salaries. </p><p> </p><p>Jim kept focused on growth, feeling that we would emerge a stronger competitive company.</p><p> </p><p>Today, the management committee is making tough choices too. None of us like the choices, but they are geared toward letting us survive this and emerge stronger.</p><p> </p><p>Are we not better off with a full management team now (even if under utilized)? Right now, assignments are being created where these people can work on short term assignements. They are beginning to work on testing new systems, operating plans, replacing other special assignments, etc.</p><p> </p><p>Remember, UPS didn't create this bad economy, we are trying to properly manage through it.</p><p> </p><p>In the 30's, UPS made some investments for the long term. Davis said the exact thing today. Money is still being spent on areas where we can be positioned for growth (new china hub, Worldport expansion, etc.)</p><p> </p><p>I saw a very educational presentation on this, and the information helped me see the bigger picture.</p><p> </p><p>Of course, not all decisions will be perfect. Remember that UPS started air service in 1929. Loss of volume and hard economic times caused us to stop that service two years later. I'm sure that was a hard decision too and affected many people.</p><p> </p><p>Davis said that in times like this, companies will end up in one of three positions:</p><p>- Extinct</p><p>- Damaged</p><p>- Leaner, stronger, and more focused</p><p> </p><p>We are going through the pain of becoming leaner. While not fun, its better than the alternatives.</p><p> </p><p>P-Man</p></blockquote><p></p>
[QUOTE="pretzel_man, post: 490935, member: 927"] Before everyone jumps to conclusions, here is some information. What UPS is doing today, and what Jim Casey did in the 30's are very similar. Jim chose NOT to cut management or salaries of our people. He said that he knew that he could, based on what the competition did. He said that he could have probably cut salaries up to 50% and only lost 10% of the people. Instead Jim chose to cut in other areas. Not dissimilar from today. In the 30's, they didn't know how long the hard times would last or how much worse it would get. They cut everywhere they could but not salaries. Jim kept focused on growth, feeling that we would emerge a stronger competitive company. Today, the management committee is making tough choices too. None of us like the choices, but they are geared toward letting us survive this and emerge stronger. Are we not better off with a full management team now (even if under utilized)? Right now, assignments are being created where these people can work on short term assignements. They are beginning to work on testing new systems, operating plans, replacing other special assignments, etc. Remember, UPS didn't create this bad economy, we are trying to properly manage through it. In the 30's, UPS made some investments for the long term. Davis said the exact thing today. Money is still being spent on areas where we can be positioned for growth (new china hub, Worldport expansion, etc.) I saw a very educational presentation on this, and the information helped me see the bigger picture. Of course, not all decisions will be perfect. Remember that UPS started air service in 1929. Loss of volume and hard economic times caused us to stop that service two years later. I'm sure that was a hard decision too and affected many people. Davis said that in times like this, companies will end up in one of three positions: - Extinct - Damaged - Leaner, stronger, and more focused We are going through the pain of becoming leaner. While not fun, its better than the alternatives. P-Man [/QUOTE]
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