Rightsizing: A strategic move to boost company’s growth

Blue Bird
Blue Bird. (IO/Dumaz Artadi)

Jakarta, IO – Dynamic and rapid changes in the corporate and industrial sector demands every company to be able to adapt in order to survive and thrive. One form of adaptation is usually through “rightsizing.” Rightsizing is not something new. It is not only carried out by established companies, but also start-up companies.

Rightsizing is defined as an effort to ensure that company resources are used appropriately and effectively, for example by adding resources to part of a company or business line that become the focus to achieve growth. On the other hand, resource allocation to part of a company or line of business that is less effective and profitable can be made more efficient.

In today’s dynamic era, rightsizing is not only defined as an act of making a number of employees redundant, but also taken by a company to ensure that their employees are placed in the right position, otherwise known as the “right man on the right place.”

Example of companies in Indonesia that have implemented rightsizing are Blue Bird, Shopee and HM Sampoerna.

Blue Bird views that rightsizing is not always synonymous with downsizing or reducing the number of employees. “Rightsizing is actually beyond downsizing. We are more concerned with how everyone can work optimally to provide the best service,” explained PT Blue Bird Tbk president director Sigit Djokosoetono.