The careerist: How to make cuts With the prospect of another difficult year ahead, many managers are wondering when they will next have to wield the knife. So how do you ensure you cut like a surgeon, not a butcher? How should I approach cuts? "Face the truth and act early," says Alex Pratt, author of Austerity Business. If something is not right, the longer you leave it the worse it gets. When the business environment changes, you've got to refit your ship to be fit for purpose. He adds that the pain should not be delivered in stages: "Do it once and cut deep. Don't slice slivers away, month after month. That can be very demoralising. Ian Gooden, chief operating officer of human resources consultancy Chiumento, says: "Deciding what to cut can be very difficult. Know what motivates your team and cut in the right places. How do I cut? "The big challenge is choosing which people you let go and which you keep," says Mr Gooden. Managers who haven't done this before often really struggle. They can't help but see them as people, but you need to stay objective. If you're not, there could be legal challenges. David Ferrabee, managing director of Able and How, a change communications consultancy, says: "You need to tell people in a coherent and humanistic way. You should set up meetings where people are informed of the process that's going to start. You do hear of catastrophes such as people realising they've been sacked when their car park pass doesn't work. It's really about managers stepping up and being honest, decent and sensitive. Tell the people who are affected first and then tell the rest. Mr Gooden says all those involved in the process need to be consistent in their message so as not to cause confusion or give false hope or despair. Disconnects can turn the gas up under an already difficult situation. He adds: "Some managers try and distance themselves by saying: "I'm just the messenger." This is not the case - here, you are the organisation's representative. What should I avoid? Mr Pratt says that people often look at what is easiest to cut rather than what is best. Two things that can get cut very quickly are marketing spend and training because of their impact on cash flow. But the people you need in a downturn are your customers and your team. Trivial savings may not be worthwhile either. "The classic is cutting free tea and coffee in the office but this creates disproportionate fear and hacks people off," he adds. Try to avoid insensitive coincidences, such as cuts for some followed by bonuses for others, says Mr Ferrabee. "Feel people's pain, but don't make hollow attempts at empathy," he says. What about the aftermath? People tend to worry about those who have been cut, but as a manager, those who haven't are of more concern to you. "Those who stay will experience a short-term rebound," says Mr Gooden. But in the longer term they'll realise its harder and benefits have fallen. You need to ensure productivity doesn't fall and you need to re-establish trust.