Ricoh Production Print Solutions (RPPS), an independent, wholly owned company of Ricoh of 1200 employees was facing yet another round of layoffs in order to regain profitability. Morale was a concern, performance in the market place for 2012 was uncertain, and planning gap of $10 million was needed to close to show a break-even for the upcoming year. HR was asked to help solution by at least $2million. I asked my team to figure how we could double this goal, but without layoffs, since we had already suffered morale killing rounds of resource action in the preceding two years.
The solution was to inspect carefully each of our Compensation and Benefits programs, vendor costs, Sales Plans and the way we forecast expenses. The goal was to find where our expenses were above market and reduce the costs of these plans by market based and industry standards. The net is we saved $6 million And put the company on a strong and more secure footing. Layoffs were not necessary, employee morale rebounded and the organization has been successful ever since.