DTIC ADA572007: Private Sector Downsizing: Implications for DOD

22 Pages·1.4 MB·English

by  Defense Technical Information Center

OPINION
PRIVASTEEO OR
DOWNSIZING:
IMPLICATIONS
FORD OD
MidJaeL. lM arshaalnldJ .E riHcu ell
TheD epartmoefnD te fenssuer gefso rwawridt phl antsoi ncreaesfefi ciency
byd ownsizIitnisgn -houlsaeb oratoCroirepso.r Aamteer icaad'vse ntwuirteh
suchp olicdiuersi tnhg pea sdte cadheo,w evehra,sl eIftwt i tsht rosnegc ond
though(tawss elalsl owe mploymeoer alheig,th u movesrt,a gnparnotf rantds .
litItnlcer eaIsnpe r oductivity).
increh e eonftd h eC oldWa r ri·enh workfocracne bed rawnd ownt os ome
late 1980st,h e DeparotfmD een­t ''irredcuocriebn"lu em beorf e mployees
fense (hDaosDb )e ecno ntinuous--sleye mingltyh,se m alltehrbe e tter-who
engageindr educiwnogr kforlceev elsw,o ulodn leyn gagieni nheregnotvleyrn ­
botmhi litaanrdyc ivilTihaens.de r aw­ mentawlo rkI.m plicitth isistn r atiesg y
downsh avea ffecteevde rdye fenset hea ssumptitohnat th es izoef t he
agencayn dc omponenitn.c ludtihneg irreducciobrcleae nb ed etermiannedid n
DoD'isn -houlsaeb oratoWroireksf.o rcfea crte alizIestd h.ia s v aliads sumption?
reductiatom nasn yo ft heslea boratorOire,ws i ll dtobwen sizjionugrn euyn der­
aree xpectteoed x cee40dp ercebnytt h e taketnor eacthh iisr reducciobrdleee s troy
endo ft hidse cad(ea sm easurferdo ma thev ertyh intgh aitsc laimsehdo ulbde
1991b aseline). preserved?
Stitlhle,ar reme a nyv oicbeosl,wh i thin Thep rivasteec thoars n ow beene n­
ando utsiodfDe oD,c allifonrmg o sto f gagedd oiwnn sizCionmrga nyy earAss.a
ther emainwionrgk i nt heslea boratorrieessu lt, bao dlyoa frl giet eradteuarlei ng
tob ec ontracotuettd ot hep rivasteec torw.i thl essolnesa rnferdo mc orporate
Proponeonftt sh iosu tsoursctirnagt egdyo wnsizhiansga ccumulaTteeUdi.n gly,
imaginteh atth er emainiinng- houset hilsi teradteumroen strtahteem sa ny
143
Report Documentation Page Form Approved
OMB No. 0704-0188
Public reporting burden for the collection of information is estimated to average 1 hour per response, including the time for reviewing instructions, searching existing data sources, gathering and
maintaining the data needed, and completing and reviewing the collection of information. Send comments regarding this burden estimate or any other aspect of this collection of information,
including suggestions for reducing this burden, to Washington Headquarters Services, Directorate for Information Operations and Reports, 1215 Jefferson Davis Highway, Suite 1204, Arlington
VA 22202-4302. Respondents should be aware that notwithstanding any other provision of law, no person shall be subject to a penalty for failing to comply with a collection of information if it

does not display a currently valid OMB control number.
1. REPORT DATE 3. DATES COVERED
2000 2. REPORT TYPE 00-00-2000 to 00-00-2000
4. TITLE AND SUBTITLE 5a. CONTRACT NUMBER
Private Sector Downsizing: Implications For DOD
5b. GRANT NUMBER
5c. PROGRAM ELEMENT NUMBER
6. AUTHOR(S) 5d. PROJECT NUMBER
5e. TASK NUMBER
5f. WORK UNIT NUMBER
7. PERFORMING ORGANIZATION NAME(S) AND ADDRESS(ES) 8. PERFORMING ORGANIZATION
Naval Surface Warfare Center,Washington Navy Yard,DC, 20376 REPORT NUMBER
9. SPONSORING/MONITORING AGENCY NAME(S) AND ADDRESS(ES) 10. SPONSOR/MONITOR’S ACRONYM(S)
11. SPONSOR/MONITOR’S REPORT
NUMBER(S)
12. DISTRIBUTION/AVAILABILITY STATEMENT
Approved for public release; distribution unlimited
13. SUPPLEMENTARY NOTES
Acquisition Review Quarterly-Spring 2000, 21 pgs
14. ABSTRACT

15. SUBJECT TERMS
16. SECURITY CLASSIFICATION OF: 17. LIMITATION OF 18. NUMBER 19a. NAME OF
ABSTRACT OF PAGES RESPONSIBLE PERSON
a. REPORT b. ABSTRACT c. THIS PAGE Same as 22
unclassified unclassified unclassified Report (SAR)
Standard Form 298 (Rev. 8-98)
Prescribed by ANSI Std Z39-18
negatievfef ecotfsd ownsizing-itthse ayl hl eltdh ec ommona ssumption
adverismep acotn e mployleoey altthye, thatth eriesa n endunreinefgdo rs uch
lososfi nvalucaobrlpeo rmaetmeo rya,n d laboratories.
ther esulthiingghc osotf e mployee Fore xamplienO, c tob1e9r6 1d,u ring
turnoveAr s.t udoyf t hipsr ivasteec tort hhee igohftt hCeo lWda rt,b en�Secretary
experiecnocuel ddo m ucht oi nformo fD efenRsoeb erMtc Namardae clared
decismiaokne rwsh ob eliesvieg nifictahnat"t i n-boluasbeo ratsohraibleelsu sed
additiownoarlk forrceed uctiiontn hse ast hep rimamreya nso fc arryionugt
DoD'si n-houlsaeb oratcoarnib eess u s­ DefensDee partmeRnets earacnh d
tainweidt hoduoti nigr reparhaabrlmte o Developmpernotg ramSso.m"e1 5y ears
theaibri ltiotp ye rforemv eans eotf c ore latJeor,h n AltlheenDn,e putDyi recotfo r
functions. DefensRee searacnhd E ngineering
(ResearacnhdA dvancTeedc hnology),
statienad B luRei bbopna neslt udtyh at
IN·HOLAIUOSIAET ORJ-fu-S
althouag lho to fi nnovatiinot nh e
EvOLunONAN D ENDURINNEGE D
Departmentte'csh nolboagsyce a mef rom
contractors,
Thep resecnotm muniotfyD oD in­
houslea borathoarsair eisc hhi stowriyt,h No wayh as been ftooup nrde ­
rootsst retcbhaicnkfg o rm oret ha1n5 0 servteh ec ombinatoifco unr rent
yearIsn.d eesdo,m e tohfeN avyc ompo­ techniecxaple rtainsdle o ng-term
nenatc tivitthiametas k eu pt hicso mmu­ corporate moetmhoetrrhy as ne t­
nity thhaedri oro tisnl egislaptaisosne d tinugp a no rganizawthieorne in
byC ongreisns1 841w,h icfhi resstt ab­ individcuaanml asi ntaali ans ting
lishtehdNe a vy bureau systtiemme., Ovaenrd c losaes sociawtiitothnh eir
thec omponeanctt iviotfti heiscs o mmu­ Service swthaiyliienn gv olivne d
nithya veev olvfreodm s malslp,e cializedt,e chnoliongs yh;o ratni, n -house
laboratofroiceuss eond a particularl aboratory.
compone(net. gf.u,s eo)rw eapo(ne .g.,
gun,t orpedtoo)w arfare-orientIenid t,1s 9 94r espontsoae laboratory
ResearDcehv,e lopmTeenstat,n dE valu­reviedwi rectiisvseub eydP residBejnltl
atio(nR DT&E),t echniccaeln tersCl inton,s tDaotDte hda itt lsa boratories•
(Carli1s9l9e6C,;a rli1s9l9e7,) . are "integral ocoftm bpemo inleinttasr y
I
Overt hepa s40t yearmsa,n ya uthorid­epartmeanctqsu'i siatnidoc no mbat
tatisvtea temreengtasr dtihniegm portances uppoirntf rastruFcutrutrhee.r"mt ohree ,
ofm aintainainni gn -boulsaeb oratorreys ponnsoet ed:
capabWitnyt heD oD haveb eenm ade
(Steelm1a9n4,7 P;r esideSncti'esn ce Thee ssentbiararlti oeo ru tsourc­
AdvisoCroym mitt1e9e5,8 B;e ll1,9 62; inga,n dt hulsh ep rincicpoaml­
Sheingo1l9d6,6 G;o vernmeAnctc ount­ petitaidvvea ntaofgt eh eD oD
ingO ffic1e9,8 1M;e sser1e9,8 3a;n d labs, ismj stshiemoionrt ivation
Langenbe1c9k8,2 W).h ilteh ese statein­ totcaoln gruewnicteth h ceu s­
mentosf terne flecdtieffde reemnpth asis, tomert,h eiird entifiwciatthi on
4
14
Donsizlnr: lmpllcatiotuD oD
Private Sedor lw
andc losenteots hswe a rfigbotfe r recesslieodn c tuot ticnogs tasn dr estruc­
thUe. SCo.m batancto mman.d.s. turiAnsgd .e manfde lclo,m panifeosu nd
Onliyn -houdseed,i caotregda ni­ themselwvietsh exccaepsasc iTthye.y
zatiotnrsu lsyh arteh ec ommit­ reactbeydc uttiinngf rastruacntdu re
mentof t hepiarr ecnotm mands. cuttipnego ple.
Moreoverp,e rtihwoiidst nesusnepda r­
Sucahu thorictoamtmievnevt esr itfhye allelgerdo wtihn g lobaclo mpetition.
continuiimnpgo rtanofci en -housAeg aint,os urviivnet ilelnsv ironment,
defenlsaeb oratoriesis-l tihtertreleae l manyc ompanireess orttoec do st-cutting
debaotvee wrh ether suacrhne eJeadbesd .m easurSeosm.e m ovedo peratiooffn­s
Butt hepyr oviLdiet gtulied anocnse i zings horteot akaed vantaofgc eh ealpa bor.
thicso mmunitHyo.w manyl abasr e Othermsa de
needeadn,d h owl argoers malslh ouldb usinepsrso -
•
theybe ?H ow shoultdh eiwro rkb e cestsm prove-
''Corporate
focuseTdh?ep revaiwliisndgo tmo daiys mentasn di n­downs izinhga•
thatth esyh oulbden ol argtehra sno me troducmeodr e beena trenfdo r
al111o•ta quarter
irreducciobrlaee,n dt hesyh ouolndl dyo efficipelnatn t
century."
thosteh inrgess erveexdc lusitvoet lhye equipmeInnt .
governmenTthi.os u tlodoekr ivferso ma botcha setsh e
fewm ajosro urcaem sa,j oorn eb eintgh e resulwla s a
downsizeiffnogr tofsc orporatoivoenrs l owedre manfdo Arm ericlaanb owrh,i ch
thpea scto upolfed ecades. ledto d ownsizing.
Anothefra ctohra sa lsof edt he
downsizfirnegn zy-rtuhsetb o i ncrease
DRMRSFOR
bottom-plrionfei tabSiilnictteby ee. a rly
PRIVASETICT ORDo WNSiliNG
1990msa nyc orporcahtiee efx ecutive
offic(eCrEsO sh)a vep ushehda rdt o
Corpordaotwen sizhiansbg e eant rendi ncrebaostet om-plrionfiet abiilnpi atryt,
foarl mosat q uartceern tuIrthy a.s b een tod rive shuapr per iceCsh.u rceht a l.
drivena n buym beorfp ressuSroemseo. f (1996s)t attehsa att tempttiorn egd uce
thesper essuhraevsve a rioevde tri m(ee .g.c,o stbsy r educipnegr sonnteelm pts
thee ffect ao rfe cessiOotnh)e.rh sa ve executibveecsa,u tshee o nlyw ayst o
exertaem do reo rl essst eaidnyf luencei.n creparsoef airtbesy i ncrearseivnegn ues
Thef trosftt hesper essuwraesls e ver­ord ecreacsoinsgtM so.s atg reteh aftu ture
agedb uyou(tLsB Osl)n.t hel at1e9 70s costasr ee asiteorp reditchta fnu ture
andi ntloh eea rl1y9 80msa,n yc ompaniers evenuaensd, a"sh umanr esources
becamset rappweidt hhu ged ebats t he represceons.tti. st.s e emlso gitcaorl e duce
resuolftL BOsT.o e ascea sh-fcloonw­ thosceo sttsh roudgehc reastihnnegu m­
cernsm,a nyo ft hesceo mpaniseosu ghtb eorf e mployeTehse.p 'r'i maqruye stions
relibeyfc utticnogs tsm,a inlbyy inm anyb oardrooamrseW :h ati st he
workforrecdeu ctions. irreducciobrlneeu mbearn,d h owd ow e
A secopnrde sswuarser ecesslni tohn.e gett ot hei rreducciobrlneeu mbeorf
latt1e9r8 0sa ndi nttoh 1e9 90wso,r ldwideem ployeweens e etdo o perate'?
145
Atquisitilone vOuillrlerl)e'w Spring
2000
OFfW ITTHH EHIR
ODS ande xpert(iMsaer gul1i9s9,4D ;u puis,
BouchaenrdC lav1e9!9,6 ).
As Sometimdeoswn,s iztionmoga ssiovre
indicattore adi,ps reo faic tosm pany
frequceannpt u atc ompainny tod eaa th
cane ithienrc reraesvee nouercs u cto sts.
spir(aDlu puiBso,u chearn dC lavel,
Labocro stlso oml argoen c orporate
1996T)h.i hsa ppewnhse nt hfier srto und
balanschee ets-ab5o0 upte rceonft
ofd ownsizingno tpd rooedsu tchere e q­
operatcionsgti sna service company­
uisirtees uilnst a vinngesc,e ssitsattiilnlg
son aturaaltltya,c ktihnpega yroilstl h e
solutdiujo on uformr o sCtB Os( Coolidgmeo,r ec utsI.nt hei ntertihmo,sw eh o
remabienc omdee moraloivzeerdw,o rked,
1998C)o.o lidngoet etsh atth ef ocuosn
andl espsr oductRievvee.n tuhee fna Us
cuttihnega dcomuanytb eh eadstrong.
and ctohmep anhya s ctuoat g ain.
Neverthehliesstsoh,ra yss howtnh arte ­
MarkM one( 1997c)i,t iann gu mbeorf
duci"nhge adcohuansbt e"e tnh per eferred
othesrt udiqeuse,s titohneesffi cacoyf
methoodfc uttcionsgt lsa,r gbeelcya use
downzsiinagsa co st-cutsttirnagtT ehgiys.
iste emtso bem otshetex pedimeentth od.
literaptouirneot ust t halta rge-scale
Whilseo meIi teraitnudrie cattheast
samprlees eamracthc hifnigrb msye xtent
downsizciannbg e nefainot r ganization,
ofd ecliinned,u stsriyz,ea ,n da ge,
atl eaisntt be
demonstrtahtaeotsr ganizatthiaotn s
shortt erm,
"'Sometime•, downsihzaev neo b ettreert uornni nvest­
theriesg row­
down•lzlng too
ments,a legsa inosr o theorb jectively
inge vidence
ma.. lveo r
measurbeodt tom-oluitnceo mtehsa n
thastu ggests
frequecnatn p ut
thosoer gainzatinoontds o wnsizing.
downsiziisn g
a companyI nto
ProfesKsiomrC amerownh,o h as
dysfunctional
a death• plral-
.. ••
studpireidv saetcetd oorw snizifnomgro re
forb otohr ga-
tha2n0 y earcso,m men(t1s9 97):
nizatiaonnds
theeimrp loyTeheesc. o sotfst hisst rategy
[Downsiziinsmg o]s to ften
areen ormoaunsdu suaulnldye restimated.
factth,e y than offseti mplemeansta e gdr enasdter at­
In oftenm ore any
egy. .y.o ut hroawg renaidneta o
anticibpeanteefdi ts.
companayn di te xplodeelsi,m i­
Indemeads,s idvoew nsizfirnegq uently
natitnhgep ositioofan c se rtain
generamtoersep robletmhsai nts olves,
numbeorfp eoplTeh.ep roblem
anda lmosnte vearc hieivteossr iginal
finanocbijaelc tives isy ou hnaovw ea yo f teplrlei­ng
(Borqu1e9,9 5;
cisewlhyoi gso ing taoff ebcet ed.
Gosseli1n9,9 4D;u puiBso,u chaenrd
Int heen da, c orporaatlimoons t
Clav1e9!9, 6I)ft.r q euenctaluys tehsbe e st
alwaylso secso rpormaetmeo ry
andb righteemsptl oyeteols e avteh e
andc ompaneyn ergy.
organizaAtnidot nh.e saer et hev ery
organinzeaetdiso n
employetehse to
ReseabrycCh a meron andc oont­hers
surviTvheec. o sotfsr eplactihenwmgi th
firmlsh awth ereiants h 1e9 80asn de arly
newe mployeaersee normofuosra n
1990dso,w nsizailnmgoa sltw afyosc used
organiztahtaihotan sl osittb se spte ople
onh eacdo untto,d aCyE Osa rbee ginning
andw,i tthh emt,h esipre cikanlo w-how
146
Downsmltf: bnpllcllfioas lor DoD
Private Sector
loc onsitdhbeejr g gpeirc toufcr hea nge­mployIenedset.eh dle,i tanneyg aotfi ve
intgh ceu ltutrheoe r ogfa niTzhaetyi eofnf.e tchtesrs ees earhcahvneero sti esd
recogtnhimazeter ely hceuatdtcionugan ltm,o msitn d-numdbeicnrge:ia ns es
withaotutte ntdoti hnfegu ndamemmaolr atlreu,cs otn,c entsraattiisofna,c tion,
problceamussi innegff icaineldna cocykf commitmaenpndrt o,d ucitnicvrietays;e s
competitwiivmleelna tenhs sesa ,mp er ob­ing uislttr,e wsosr,k loaabdsse,n ces,
lemwsi lple rseivseatnf tdeorw nsizitnagr.d itnheescfsyt,n, i cainsodmp ,p ortun­
Commenotnit nh.giC sa,m ernoontt ehsa ti smM.o n(e1 99f4u)r tihnedri ctahtaets
"Companineoswr eaarlei zihneg incretausrneodav neidrn tenttoJie o.anvse
thatt y
havteor edestoia gvnot ihdpe r obolfe mm aya lsfoo lldooww nsizing.
overlofaedwiwenorgr kweirttshh s ea me Focusoinan s gp eciinfsitcla inscte ed
amouonfwt o rk utshsiean mgoe r ganaib­ovweecan, seteh tahtpe s ychological
zatiaornraaln gemWehnafrlos l.l"io sw se ffecotf s can
downsizinign fetchthe e alth
am ore ina-ndaelpoytftsh hi pesr obleomfts h seu rvievmipnlgo yFeoeerxs a.m ple,
witdho wnsizing. ones tu(dLayV oi1e9,9 c7o)n fiar med
relatbieo-n
tweedno wn­
''Firadto,wn alzlng
NIGAnEVEFF EmO FC uniNG HEADCOUNT
sizailnslgud b ­
oftena clver.ely
sequeenmt­
aHecta ••ploy•••
Firdsotw,n siozfitnaegdn v elrys eployaebes en­
remainiantgt he
affecetmsp loryeemeasi antti hnoegr ga­teeibsemc ause
organisation.
n
nizatSihoanr(.m1 a9 9p6r)o viavd ieesw o fi lhle alThteh .
increahseilbndygr leys earcherss:t ufdoyu tnhda t
Lheex tteown hti ecmhp loyheeeawsla'ts h
Downsiszoiunnggd oso odn affecdteepde nodnet dh dee groefe
papebrui,tct a cno sact o mpany downsiSzpiencgi.f iiftco aultnlhdyta ,ht e
al ootfm onePye.o ptlrea iinne d ratoefl ong-stieclrkem a (vmeo rteh an
importteacnhtn iaqnudse ksH ls thrdeaey wsa)s1 .t9o6 .t9i mgerse ater
ovetrhy ee aerxsp etchteh iera ds aftmearj doorw nsitzhiaannfg tm eirn or
to hicth otphpbeil nognc ekx t, downsiOzvienrgla.ol nlg,- stielcrekma ve
and geatss oooaunstt hecya n. increbay1s 6et do3 1p ercdeunrtit nhgi s
Thec ompainsly e fwti tthh e perioofdd o wnsiCzoinnsge.q uoefn ces
secobnedsO tn.el aycoaffrn u in sucthr enondp sr oducatrioevb ivtiyo us.
morafloetr h e fneexwyt e ars, Thiesff eicastl tshose u bjoefacr te cent
andt hceo sotfr ebuilcdainn g bookb yD avNiodc (1r 9 9N3o).eb re lieves
eautp t hdeo llsaarvsbe ydt he thtaht"i ssu rvsiivcokrnc eashnsa "rt mh e
orig"icnuafrloe t"rhc eo mpany'so rganoinz'ahste ialalshs ,u rvivors
finaniclilanalen smdso ,r e. contitnobu ee" angarnyx,i oaunsd,
deprefsosyree daa rfstt ehlrea yoffHes ."
(l 99c7i)t,aig nrged aetaoJ f advocsaetreiison utse rvteodn etwailio tnh
Mone the
releviatnetr aptouironeutt,tsh oartg antih­siisc knteoas vso,ei mdo tidoinsatlr ess
I
zatidoonwanJs iczaihnna gvave ar ieotfy a ndp roducptairvailt(yyC shiasu dron,
dysfuncctoinosneaqluo ensn ucrevsi v1i9n9g4 ).
147
Afquisition ReviQuGrterleyw Spring ZOOO
FinalJlGyr,s tHeang gibsa st riteod thaev eraagnen ueamlp loyteuern ovreart e
makes ensoeft hidsi zzyianrgr aoyfi ll forall c ompaniise 1s2 p erce(nBtu reau
effectcsl,a ssiftyhienimgn ttoh rceleu s­ofN atioAnffaali r1s9,9 8I)n.t hUen ited
terTsh.e sien clufdeea( ru ncertiani­ntSyt,a ttehse isr ea3 0p ercetnutr noivnae lrl
secur"iWthyym, e ?"f)r,u str(arteisoenn ftr-ont-jloibnAse .1 99W6i sconsstiund y
menta,n ger,f ountdh a"t7 5p erceonftt h dee manfdo r
blaminagn)d, newe mployeiesss i mpltyor eplace
""Thep oalblllty u n eas• n1e s s workewrhso h avlee afc to mpan(yP.o"s i­
exbtfso rcy ber
(betradyiasl­,t ivDei rectiIonnc1s.9,,9 8P;i nkoveitt z,
a"ackosf e very
trusdti,is1 1u­al1.9,9 6-97).
type,a ndt he
sionmenltf) . Perhatphsi s dine ccloimnmei tmheanst
resulctasn b e
sucehm otionbse edne monstrmaotsetfd o rclefliuyn a
catcutrophlc."
aren otr ecog-recesnttu bdyyA ONC onsultEinntgi.t led
nizeadn dca re­"America@Woirtkc ,o"n clutdheast
fuldleya wlitt shh,e a ssertthsec,ya ni n employleoey ailsta yt bioogft hpea st.
manyw aycsr ipapnlo er ganizationT.h es tudfyo untdh atto dawyo'rsk efrasc e
ColJecttihviersle ys,ea arrcghu tehsa t mores treosnst hjeo bw,a nmto ret ime
thseu rvrvdoerssp istteih lalv ijnogb s­ fort hepierr solniavle asn,dw ilslw itch
arep rimaraiflfceyt ende gatibvyet lhye jobfso rr elatisvmealliyln creainsp easy .
downsizeixnpge rieCnocnes.e queonft lIyn f acmto,r et ha2n5 perocfetn hto se
coursteh,eo irrg anizsautffieorn s. survesyaeidtd h ewyo ul"dj umsph ifpo"r
a payr aiosfe1 0p erceonrlt e swsh,i le
moret ha5n0 p ercesnatit dh ewyo ulddo
THEE MERCGIEO NF THE
sof oarr aiosfe2 0p erceonrlt e sAss .t he
11VOLUWNOTREKUF ORCE"
authonrost" eT,o dayw'osr kearrsem ore
educateendt,r eprenaenudri inadle,p en­
Onem ajocra suaolftt hyde o wnsizindge ntth aenv earn,d a rem ored iscerning
trenadsm, i ghbet e xpecftreodtm h aeb ove inc hoosiwnhge rteow orkP.a rticularly
discushsaibsoe ne,an n e rosioofwn o rkerin thitsi glhatb moarr keitit,gs e ttmiuncgh
loyaltloty h eo rganizaDteicorne.a setdo ughfeorbr usinetsohs aensog n t ot heir
commitmehnatsi ,n t urnr,e sulitne db esatn db righteemsptl oye(eSst.u"rn ,
increaesmepdl oyteuer nowvietra,hl olf 1998)
itass socicaotsetAsds a.r esumlatn,yb usi­ Attracatnidrn egt aienmipnlgo yiene s
nessneso wc onsidkeere pisnkgi llehdi gh-technboulsoignye sisnecsl,u ding
employae measj oprr obloenme,w hich,d efenissea , p articutlraorulbyl esome
ifs olvceadn,l eatdo grecaotmepre titiivses uPea.ro tft hdei fficulltiyei snr ecent
advantage. employmternetn dssu ciahnr eaLsu.k er
Thee rosioofen m ployceoem mitmenatn dL yon(s1 997)u,s indga tcao vering
basb eewne ldlo cumentNeeda.r4 ly i n thep eri1o9d8 8-19f9o6u,n tdh atth e
10firms recenstulryv ebyyeW di lilamM . industcroimaplo siotfie omnp loymienn t
MerceIrn cr.e poratneu dp swiinngturn­ reseaarncddh e velop(mRe&nDt-) i nten­
oveinr thepa s3t y ear(sG.e mignansii,v hei,g h-techinnodluosgtyisr siheisf t­
1998) Ansottuhfdeoyru ntdh anta tionalilnydg,ramati caltloyw asredr viicnedsu stries,
148
Dowrumng:l mpliadioDonsD
Privflte Sector for
ase mploymeinntR &D-intensdiev­e,e videnscueg gersetcs ruitimsae lnrte ady
fense-depemnadneunfta ctuirnidnugs triaeg sr owipnrgo blemt hidene fenisned us­
decliannedse ,m ploymiennct i vilhiiagnh · trisaelc twoirt,sh o mefirm s nowo ffering
tecmha nufacturreimnagi ensss entiablolnyu soefss everal thdooulslaatnrods
static. employewehsob rinignn ewr ecruits.
ln( actth,e idra tdae monstrtahtaet The probcloeumlb dee ven maocruet e
R&D-intensseirvvei accecso unftoeardl l fohri gh-tdeecfhe nasnedm anufacturing
of
then eitn creianse em pJoymcinnrl h e industrwiietsha higph roportoifo n
R&D-intensseicvteso irn c1e9 8a8n,d informatteicohnn ol(oIgTwy)o rkers--for
grewm orer apidtlhyad ni de mploymenetx ampleel ectreincgailn eecrosm,p uter
int hes ervidcievsi saisoa n w holeI.n scientciosmtpsu,t eenrg ineesryss,t ems
essenmcoer,e a ndm oreR &D workersa nalysatnsdc, o mputperro grammers­
int hUen ited Satrameto evsi ng tihnet ob ecautshee riesa growinsgh ortaogfe
servisceec twohre rjeo bt urnoviesr sucwho rkeirnst heU niteSdt ateTsh.e
Commer(c1e9 97)
particuvloalraltTyih leae u.t hocormsm ent: Departmeonft bas
documenttehdee xteonftt hissh ortage.
Thec losae fru mi st ot he tech­As ar esuslatl,a rainedbs e nefpiatcsk ages
nologifcraoln t.i.e.r st threo nger int hen on-defceonmsmee rcIiTas le ctor
•
wilble i tdse manfdo hri gh-tech ares oannags
worke.r.s. Annodm attehro w companiteasr ­
manys cientainsdte sn gineers get defens"eT hov olunteer
thearree t,h eayr ael wayisns hort workebrost,ih n workforceI,n1 um,
half undamentally
suppJlyo.bc reatjioobnd ,e struc­ governmaenndt
chansotdh ok ind•
tioann,d. .j.o bs witch.i.on.cg c ur industarsya ,
ofl uuo• and
amongt bem ostt echnologicalpldym es ourocfe
prolllo•f•o rt oday'•
innovatfiivrem [sa,n wdo rker] newh igh-tech
corporaetxee cutive•
instaboiflc iotuyr,sc ea,nr esuilnt employeRees­.
and• anaaor�."
dynamic losses of centilnyG ov­
ernmEexnetc u-
knowled.g.I.eno rdetroa uract
tive
andk eeRp& D taletnhte,fin r,m s Magazine,
mustc ultivwaetlel -articulatReidch aLradr dn(e1r 99i8l)l usttrhaitse s
internlaalb omra rkeftossr c ien­ trenidn aarnt idcelael iwnigt thh eo ngo­
tisetnsg,i neaenrdso ,t hecrl asses ingb raidnr aiantt heN ationSaelc urity
of skielmlpeldo yeperso,v iding Agencyw,h ermea thematicainadIn Ts
highw ageasn db enefiatnsd, workearrseb einlgu readw ayt ot hen on­
emphasipzaer ticipianst tiaotne ­ defencsoem mercsieaclt boyrf irmssu ch
of-thep-raorjte cts. asP ricWea terhouse.
Thev oluntweoerrk force, hians sum,
Thed efenisned uswthriyc,hh a si nt he fundamentcahlalnygt ehdke i ndosfi ssues
pasbte eson dependoennm ta nufacturianngdp, r oblefmotsro dayc'osr poreaxteec u­
maya lshoa vdei fficukleteyp ingR &iDt s tiveasn dm anagerAss. N ancyL yons
workferrosmm o vitnog
thel ucra1ivpeo inotustt ,h bee serm ployeneosw" elect
non-defesnesrev isceec toArn.e cdotatlo w orwkh erteh edyo s implbye cauiste' s
149
Alqulsition ReviewOuarfetl y Sptiltf 2000
thke inodf p lacteh ey tlois kheow u pa t importiannfto rmattoia o snu ccessor.
every dTahye.yw" a ntc hallenagnidn gW hent hsee paraitsii novno lun(tea.rgy. ,
excitwionrgka ,n dt heayr ei nd emand.a sa r esuolfdt o wnsiztihnegr)ea,l oisss
Thiiss w hyi na r ecesnutr voefy1 ,443 ofc orpormaetmeo r(yv adneV lie1t9,9 7).
memberosfT EC( ani nternatoirognaa­l Thec omplkenxo wletdhgadete parting
nizatoifoC nE Os)m,o stc itehdir inge,m ployeesw itt!.ahhk eemm i ghitn clude
trainainndgk ,e epienmgp loyeaests h e thien divideuxaple'rsi weintcphea rticu­
majoprr obloefmm a nagetrosd aTyh.e re laprr ojeLcotssos.f t hiksn owledcgaen
isn os igtnh atth isc hiasn ging. beb otdha ngeraonudes x pensSitvued.­
ieastW arwiUcnki verisnEi ntgyl ahnadv e
showtnh amta nyc ompanireesp roduce
LOSSO f( ORPOMRIMAOnR Y
thebilru ndeornas r egulbaars iTsh.e
managemceonnts ultMacnKtisn sheayv e
Downsizhianshg a do thedri rceo nse­conclutdheadmt a nyw asttei maen d
quenceonse,o ft hem osti mportoafn tr esourrceesso lvpirnogb letmhsah ta ve
whicihsl ososfc orpormaetmeo rWyh.a t previobueselunyn raveinl tehdce o mpany.
exacitslcy o rpormaetmeo ryM?o sitn di­Reinventthiewn hge eilst huas m uch
viduailns o arng anization, esmpeocrieca olmlmyo ntdh rea ionf c orporate
higphe rformaerrsest ,o rehooufss pees- resouracnedcs r eatitvhiamtnoy s mta n­
cialikzneodw ­ agerism aginMeo.r eoveasrA ,r nold
ledgeM.o st KransdoofrP fefn cotrhpLe,o ndon-based
''Dwnso blngh a•
arael sroe posib­usinheissst orhiaaspn osi,n toeudtt ,h e
hado thedri re
torioefos r ga­dangeorfcs o rpormaetmoer lyo sasr pea r­
conae quencea,
n i z aotnai l ticulaacrultyea nei rnwa h edno wnsizing
oneo ft hem oat
folkloarned andr e-enginheaevrsiehn ogr tejnoebd
Importanotf w hlch
oratlr adititoenn utroae n a vera6gy ee arasg,a itnhset
Itl ouo fc orporate
whicshu,r pribsa­ckdorfoa pne ight-tyreaadre (cvyacnl e
memory."
inglayr,ee s- deV lie1t9,9 5).
sentitaotl h e Corporaamtnee sciaan a lsboe t he
smootahn de fficiweonrtk ionfga n resuolftt h et rentdo warodut sourcing,
organizTahteik onno.w leadngdte r aditiaocnc ordtioMn agr gaGrreath afmo,u nding
incluedxepse riienns cpee cipfriocj ectpsa,r tnoeftr h Wei nthrop iGnrC oaump­
netwowriktsch l ieanntdcs o ntafcatmsi,l ­bridMAg,e ,o neo f tlheea dicnogr porate
iariwtiytc ho mpancyu ltuarneda, w are­memorayn db usinheissst coornys ultants
nesosf a no rganizaitnifoonr'rmsea lla ­in LhUen itSetda tesn.o tSethshe a cto m­
tionsahnidpd se cision-pmraokciensgs epsa.n iienst eonnrt e ductihnegci arp ibtaasle
Collecttihvieisln yf,o rmaitsri eofne rreodrh andionfgaf p roblbeymo utsourcing
toa sc orpormaetmeo ry. af unctfioorngt ehtie m portoafnl"co ec al
Anyt impee oplleea vweh,e thveor\ un­knowledsgpee,c itfoti hcce o mpanwyi,t"h
tar.oirli yn volunttahreLiyal kwyei, t thh em seriocuosn sequefnocrpe rso ductivity.
someo ft hiksn owleadngdel orWeb.e n (vadne Y lie1n9t9,5 ).
thsee paraitsvi oolnu ntlahreyir,sae tl east A numbeorfa nalyhsatvsae l ssoh own
someo pportutnopi atsyas l ontghm eo re thceo nnectbieotnw edeonw nsizainndg
150
Do'NIIsuinlgm:p lltotioanDo D
Privrzte Sector for
lososfc orpomreamtoer (y" Corporbautiel dmiancghsi,n cearsayhn, d s of orth,
Amnesi1a9,9"6 F)o.re x ampAllea,n bustu cmhe asudrone osi! n cltuhdveea Jue
Downasu,t hoof"r C orpoErxaetceu tioonfts h:we o rkfotrhceeki,nr o wletdhgee ,
TheU glTyr utAhb ouLta yoffs-Hwoawy t heuys ceo mpustyesrt eamnsds o
CorporGarteeei ds$ halteLriivnegs o n."
CompanainedCs o mmunitrieelsaa,t "e s
tellainnegc dDootwenpo.si notsut th bea­t
CORPORMAEMTEO RYI N
twe1e9n8 a5n 1d9 9A5p.p llaeoi ffda bout
AN RU ORGANIZAnoN
6,00p0e opwlhei,al tet hsea mtei mien ­
creasoivnegr haelald coeuancythe ar.
Commentointn hgi hsew, r ites: Corpomreamtoeri ysv itailmlpyo rtant
toa no rganizsautcaihsoa nl ,a boratory,
Thicsr eaatc ehsu rneinnvgi ron­heaviinlvyo lwvietRdh& D.H ow inno­
menotf f eaarn dc onfu.s.i.o n vatioocnc uirnss u cohr ganiziasot fi ons
Haviwnogr kaetAd p plIek ,n ow greiantt erteoms atn ya,n dh asb een
evetriym teh eyc'ovned uocntee d studeixetde nsCiavrell(iy1 s.9l 9ep7 )r o­
oft helsaey otffhse,hr aesb een vidaeb si blioggruaiptdohse io cmo eft his
mascso nfuseivoenr;y iosn e literature.
graspfionrg ptiheeocifter h pei e. Itis b ecomingt hcamltue caohr ft he
Therael 'osotf t imleo sOtn.er e­ innovadtei-on
sulitst hatthc eo mpalnoysi tt s pendosni nfor­
11ftI •b ecoming
competietdigvefe,a iltion g manle twoirnk s
cleatrh atm uch
develao npe wb reakthrougthh eo rganiza­
oft heI nnovation
prodduucrti tnhgei nst pierrei od.t ionne,t wordkesp endoan I nformal
thautn triel­ networluI nt he
Witeha clha yocfofm eas l ososf centlhya veo rganisatnieotn·,
corpomreamtoera yn,wd i teha clho sosf beeunn derawpo­rld thatu ntil
rece ntlhyave been
corpormaetmeo rcyo meas l ososf preciaFtoerd .
underappreclated"
producatnicdvo imtpye tit"iIvtte'hnsee sosn.et ,h eeyn able
knowlendugaen,c aensdi ntuiwtei otnh ceo llabora-
britnogd ay-tod-edcaiysm iaokni ng,t"i okne yt oi nnovatKiroeni.na enrd
sayJsa mes ChapJrleesniogdfeCe rhn,at l ­Schu(l1t9z9h 3a)vs et udiinefdo rnmeatJ­
lengGerra,&y C hrisitnmN aosr thbrowookr,ki snR &Do rganizatiotnhse. Noting
lL" A lbiitottft l heii sn valucaobrlpeo i­mportasnuccenh e otfw otrhkespy,o int
ratmee mordyi sappeeaacrthsi maen outth "aat ccooufn tisn foromfca oJl ­ways
indiviisdl uaaioldff( "LosCionrgp oraltaeb oraatrdier nagm atiucnadlelry- repre­
Memory1,9'9'6 ). sentientd h lei teraantdue rveet,nl 1en,
Somer esearccohnesriscd oerrp oraatroeef toennla yc knowliendp gaesdsi ng."
memoramy a jaosrs aented l emoefnt th e Examptlheecsyi itnec l"usdkeu nkworks"
companoyv'esr ianltle llceacptiutaal(l Q.u in1n9,8 5P;e te1r9s8,8 ")b,o otleg
Annie Bro(91o9 k9iw)nr gi t"eCso:m ­resea(rBcuhr"g ealnmSdaa ny l1e9s8,6 ),
paniacrtscy picwaellvlley r sienad s sessa­nds imiclaorn cetphtasat l lutdoe
inagn dv alutianngg iabslsees tusca,hs inforpmaatJt weirntsht ihrnee seaJracbh.
151