DOWNSIZING MISTAKES: The decision to cut jobs can be a painful one, but mistakes during that process can bring more troubles for a company down the road, an executive search firm says.

Salveson Stetson Group offers these common mistakes to avoid during lay-offs:

— Not cutting deeply enough. Many companies try to lay off as few people as possible, when in reality business conditions may call for more significant action. A second or third round of downsizing can have a negative impact on employee morale.

— Cutting staff without an eye towards recovery. Evaluate business processes so that when business does pick up, your staff can handle the upswing. Alternatively, create a talent acquisition plan that's immediately ready to execute.

— Neglecting the "survivors". The employees who stay often have to take on more work with fewer resources, and are still reeling from the loss of their colleagues. Let them know you appreciate their hard work.

— Focusing too much on current economic issues at the expense of broader, demographic issues. An aging workforce still means a severe talent shortage on the horizon, for instance.

— Failing to realise the cost of not filling a position. Consider how much the company might lose because a position is empty, or how much momentum will be lost in the market. Also remember that the absence of leadership positions could have a broad impact within the company.

— Forget that downturns create opportunities. Have a compensation plan that's outdated? Now is the perfect time to make a change. You've got your team's attention, and the climate is ripe for a new way of operating.

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SCANDALOUS: Sure, Bernie Madoff broke some hearts. But when it comes to the business world, sin and scandal are nothing new.

Madoff's crimes of losing billions of dollars on behalf of thousands of investors are listed among the 20 greatest crooked deals and downfalls in a book recently published by Fortune and Time Inc.

"Scandal! Amazing Tales that Shocked the World and Shaped Modern Business" recalls the Bre-X Minerals gold scam, how Enron was brought down, and the state bribery case of a former HealthSouth Corp. chief who was also a country singer.

"All of these scandals have, as a backdrop, a booming economy and a booming market, as well as exuberance that makes them easy to operate," said Andy Serwer, managing editor of Fortune magazine.