There are times when the restructuring of a company becomes necessary to align the organisation with its goals, ensure future success, or even save a business. Restructuring is most often a very intricate and complicated process that presents many challenges. If it isn’t executed with care and expertise, it could even lead to the demise of a company.
If this is such a challenging and risky process, why attempt the restructuring of a company? This could be due to a number of reasons. Maybe something simply isn’t working and now a course correction is necessary for survival. It could be due to a merger, or a change in product or service focus. It could be to meet changing consumer demands or to take advantage of a new opportunity within the market.
Always Start with A Clear Strategy
You absolutely have to have a plan that is clearly defined to keep your organisation on track and focussed during this tumultuous time. Creating an effective strategy starts with identifying the objective – the reason for the restructure – as well as what is currently standing in the way of achieving this goal.
Know Your Strengths and Weaknesses
Now that you have a plan and a clearly defined goal, it is vital to identify the strengths and weaknesses of your organisation. Which internal assets can help you execute this process successfully? Focus on harnessing these. What are your weak points? Create a plan to support these areas so that they don’t derail the process.
Consider Various Options When Creating A New Structure
When restructuring a company, you will need to create a new organisational model. This might include a new hierarchy of responsibility, reporting and decision-making. Accountability might even shift. Consider the values and benefits of various structures, including if you want to stick to a horizontal structure or switch to a vertical or matrix model.
Clearly Communicate Changes and What These Changes Are Expected to Achieve
Communication is the key to success. Once you have a structure in mind, be transparent and communicate the model as well as the reasons behind it clearly. Be open to feedback and evaluate whether any of these add new information that can be used to further fine-tune the strategy and/or structure.
Consistently Monitor, Evaluate, and Adjust
Change is never easy, and people have a habit of fighting it. Change management is important. Monitor the impact and success of changes and be open to adjusting your plans as and when new information becomes available. Ultimately, the plan is there to guide you towards the goal – keep your eye on the prize and adjust the process accordingly.
When it comes to such an intricate process that determines the success of your business, it makes sense to partner with experts in this field, such as Orgro. We have been helping companies unlock their full potential since 1982. If you are planning on restructuring your company, contact us for assistance to develop and implement the process successfully.
As a leader, this is some important information for you to know in times where...