Even though downsizing is not the natural vocation of business, it might become an indispensable rescue operation.

IT Cortex Pareto right-sizing is the right alternative to down-sizing.

There are several ways to trim down an operation. The most common one consists in chopping off departments or parts of departments that contribute the least to the bottom line. Staff functions or money-losing operations are the prime targets for the ax.

The IT Cortex approach, strategic simplification, offers the benefits of classical downsizing by trimming the operating costs but comes free of most of its undesirable effects. It is more selective and accurate. It uses a bistoury rather than a sledge-hammer.

Whereas classical downsizing could be compared with chopping off a few big boughs off a tree, Pareto right-sizing consists in pruning twigs. Much less collateral damage is made. The organization undergoing that mutation does not wipe-out a chunk of its market. It places itself in a position to skim its market further (i.e. to take the best part of it) but does not necessarily have to surrender its presence in it. The economy is cyclical. Better times comes after a market has shred its excess capacity. It is always preferable to selectively unload unprofitable customers and discontinue unsuccessful products or services than losing, once for all, a sizable market segment to wheather a market downturn.

Moreover, in business, serendipity plays its role. Sometimes, by staying present in some market segments, you find the way to new and fast-growing segments.

The sooner Pareto right-sizing is performed, the better. If it is performed soon enough one can combine, cost reduction, efficiency increase and even sales growth.