By Patrick Daoust and Paul Simon of Oliver Wyman. This article is republished with permission as part of our licensing program. We welcome your thoughts on this topic in the comments section below.

Almost every business is reorganizing its operations in response to the economic slowdown caused by the Covid-19 pandemic. Often, companies take a top-down approach to resizing based on a limited set of data such as earnings forecasts and competitive benchmarking. But following this playbook usually results in “wrong sizing . . .

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