The High Cost of Poor Planning: Why Risk Management Must Guide Federal Workforce Reductions

Strategic planning and risk management are not just best practices but necessities in times of change. The recent upheaval in the U.S. federal government workforce—marked by abrupt staff reductions and sweeping budget cuts—has highlighted the dangers of poor planning, lack of foresight, and the absence of risk mitigation strategies.

As the Bible reminds us, “If any of you lacks wisdom, you should ask God, who gives generously to all without finding fault, and it will be given to you.” – James 1:5. Unfortunately, wisdom appears to be in short supply in recent governmental decisions that have ignored risk assessment, stakeholder engagement, and long-term sustainability in favor of hasty cost-cutting measures.

False Promises, Real Consequences

During the 2024 presidential campaign, the American public was inundated with promises of efficiency, cost-cutting, and reform. However, as events have unfolded, it has become evident that these were, at best, oversimplifications and, at worst, misguided strategies devoid of proper planning. The rushed approach to restructuring the federal government has sown chaos rather than efficiency, leading to dysfunctional agencies, mission-critical gaps, and national security risks.

Despite the certified election results, uncertainty lingers over the true decision-making power within the administration. Reports suggest that Elon Musk, positioned as the key architect of the newly formed Department of Government Efficiency (DOGE), has been driving drastic policy changes without thorough risk analysis. The aggressive push to downsize federal agencies absent proper evaluation and mitigation strategies has led to severe consequences.

Case in Point: The Department of Energy (DOE) Debacle

The termination of more than 1,000 employees from the Department of Energy (DOE) has shown the perils of uninformed decision-making. The fallout from these cuts was particularly severe within the National Nuclear Security Administration (NNSA), which is responsible for overseeing the U.S. nuclear weapons fleet and securing radiological materials globally. More than 325 professionals from this critical agency were displaced, raising grave concerns over national security and nuclear safety.

The fundamental question remains: Where was the risk management strategy? The reckless execution of workforce reductions failed to account for essential risk analysis—an oversight that has put national interests at stake. Risk management, risk analysis, and risk mitigation must be embedded in any government reform strategy, particularly when dealing with national security, critical infrastructure, and essential public services.

The Danger of Ignorance and Arrogance in Leadership

As Hosea 4:6 warns, “My people are destroyed for lack of knowledge, because you have rejected knowledge.” 

Effective leadership demands knowledge, foresight, and humility, yet the current administration’s approach has been marked by arrogance, ignorance, and short-sightedness. While there is broad public support for reducing government waste, such efforts must be strategically planned and collaboratively executed to ensure efficiency without undermining national stability.

A truly lean and effective government is not built through reckless budget and staff slashing but rather through careful process evaluation, stakeholder engagement, and strategic implementation. This requires a “TEAM” approach—Targeted Efficiency and Measured Reductions—where reductions are not haphazard but aligned with long-term performance improvements.

The Way Forward: A Call for Strategic Planning and Risk Management

The events unfolding in the federal workforce restructuring serve as a cautionary tale. If the goal is truly to build a more efficient, high-performing government, then risk management must take center stage in the decision-making process. The administration must:

1. Implement Comprehensive Risk Analysis – Before enacting staff reductions, conduct impact assessments to understand how cuts will affect critical operations.

2. Engage Stakeholders and Experts – Include agency leaders, subject matter experts, and employees in discussions to ensure an informed and strategic approach.

3. Prioritize National Security and Public Services – Any restructuring must safeguard essential government functions, particularly those linked to security and public welfare.

4. Develop a Phased Implementation Plan – Abrupt changes create instability; a phased, data-driven approach will enable smoother transitions and long-term success.

5. Monitor and Adjust Strategies in Real-Time – Effective leadership requires adaptability. Risk mitigation strategies should be ongoing and responsive to emerging challenges.

Leadership Requires More Than Just Cutting Costs

The current state of affairs is a stark reminder that governing is not merely about reducing numbers on a balance sheet—it’s about understanding consequences, mitigating risks, and ensuring stability. Strategic reductions and operational efficiency must be data-driven, thoughtfully executed, and focused on long-term sustainability.

True leadership is measured not by how quickly one can cut, but by how wisely one can manage change. The administration still has time to pivot—but only if it acknowledges the critical role of strategic planning and risk management in shaping the future of the U.S. federal government.

At Transcontinental Consulting, we specialize in guiding organizational leadership through comprehensive strategic planning that integrates proactive risk management. Our expertise in program/project management, strategic planning, and executive leadership coaching empowers agencies to navigate workforce transitions with efficiency, compliance, and resilience. By leveraging the industry’s best practices and data-driven insights, we help organization leaders mitigate risks, optimize human capital, and align workforce strategies with long-term mission success. Let Transcontinental Consulting be your trusted partner in building a stronger, more adaptable workforce. Contact us today to develop a risk-conscious strategy for your agency’s future.