Gummy Residue

A problem that arises in the wake of downsizing and/or organizational dysfunction. Good people leave; the average goodness drops; people look around, wonder if they want to be associated with what remains; LatherRinseRepeat.

Corporations usually learn about the harm done by inappropriate downsizing far to late to do anything about it. They downsize by removing the skilled cogs in the wheel by replacing some of them with "contractors" who they think are less expensive and easier to manage and replace. These contractors are usually as committed to corporate success as are the people who bring them aboard are in their future success and well-being.

When the managers thus involved begin to see the negative results, they start doing things which will strengthen their own careers, (which usually involves changing jobs), thus leaving vacancies which are next to impossible for the next level up to staff with competent and devoted replacements. The next higher level people then start doing things which will strengthen their own careers, (which usually involves changing jobs), before the levels on up the ladder begin to have a clue about what is happening below them. The cycle continues and evenutally shows up in the bottom line, which gets attention paid to it, but far to late, (often by at least a year or two), and they begin disinvesting by selling their stock or stock options, etc.