Enterprise Anorexia Concept
Enterprise Anorexia is an expression created by Gary Hamel and by C. K. Prahalad in “Competing for the Future” to criticize the abuse committed with downsizing. The expression was created to describe the organizations that continuously search to reduce costs and the number of employees, without worrying in redefining functions and processes or revitalize the organizational culture.
Prahalad had even defined enterprise anorexia as the disease of diet fanatics in human resources. According to him, “Downsizing can make the company skinnier and thinner, but not necessarily healthier. There is the need to create muscle and not only to reduce the fat. With downsizing was lost some fat, but also muscle. Was lost a lot of the company’s intellectual capital. Was lost a great part of the company’s memory. Finished that becomes very difficult to rebuild skills”.
Later, also Michael Hammer, the creator of the reengineering concept, through his new book Beyond Reengineering made an effort to separate reengineering from the downsizing tools’ package and to connect it to the enterprise growth for the twenty-first century.