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I have a picklist field on Contact 'Group' with values A and B. My requirement is if select 'A' , all the related lists of Contacts should be visible but if I select 'B', all the related lists (the lookups) should hid on standard page layout of Contact. Is there a workaround for this. Thanks in advance.

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One option to show different Standard page Layouts is to use different record types and based on the picklist value selected while saving a record use a workflow rule + field update to change the record type of the record which can then display the associated page layout..

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