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Before getting rid of staff how about each organisation look at where horrendous amounts of waste is in terms of duplication - each organisation tries to reinvent the wheel and people who are in their comfort zones continue to do what they feel comfortable with. This is a great opportunity to rethink the way things are done.

Getting better at performance managing people would be a good starting point too and it would certainly help when getting rid of incompetent people (there are plenty of those around).

Getting rid of highly paid firms who tell you what you already know whould be the first on my list - just ban the lot. Perfectly capable staff are ignored and these 'consultants' pick their brains and put it in a nice report and it's left to the staff to deliver it anyway.