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A challenging economy such as that of 2009 leads forward thinking organizations to examine their fixed and variable costs, and many organizations are also looking to reduce workforce costs. The risk is that the workforce is often the key to competitive advantage and to creating long term value - so all workforce cuts also potentially jeopardize value and long term success. The key is to target cost savings at the areas with the least risk - and investments in those which create the most value. This paper explores approaches which enables one to understand the wider impacts of short term workforce decisions.
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