For preserving capabilities during a reduction in force, which practice is most appropriate?

• A. Focusing on cost-cutting alone.
• B. Pursuing aggressive outsourcing of core capabilities.
• C. Identifying critical skills and implementing reassignment plans to preserve capabilities.
• D. Delaying all cross-functional training to save time.

Answer: (C)

Preserving capabilities during a reduction in force comes from first identifying which skills are essential to keep the business operating effectively, then actively redeploying talent to protect those capabilities. By pinpointing critical skills and implementing reassignment plans, you maintain the organization's ability to perform key tasks, retain important expertise, and ensure continuity for customers and operations even as headcount is reduced. This approach reduces disruption, preserves institutional knowledge, and supports a smoother transition.

Focusing on cost-cutting alone may save short-term expenses but can erode the capacity to deliver critical work. Aggressive outsourcing of core capabilities can weaken control, knowledge, and strategic advantage by moving essential functions outside the organization. Delaying cross-functional training limits future flexibility and makes it harder to adapt if priorities shift, undermining resilience in the long run.