With the current downturn, many Organizations are considering reorganizing and restructuring to remain afloat. To be able to restructure at the best, most informed manner, it is important to plan, communicate and layout.
Alan Quash, Founder and President of Quadrant Management, Inc. explain the major reason that firms contemplate restructuring. As he states, the principal reason for restructuring or reorganizing your company is to make sure it’s in the best position to accomplish its objectives. Here are several important methods for almost any company that is considering restructuring. Before restructuring, the organization should get top management involved in executing any significant alterations and should plan ahead in terrific detail. Planning ahead involves assessing risk, setting priorities, and creating a vision for how the changes will help to propel the company forward. Certainly, as you consider making dramatic changes, you want to take into account the risks involved with these changes and be flexible with your priorities.
With any company restructuring, the Transitions will operate more smoothly if everyone is involved in the procedure. Research demonstrates that business reorganization is more effective when they involve the workers. Because of this, managers should discuss the upcoming changes with the workers and should explain how the changes will affect the staff. You should know of any Information and Consultation of Employees Regulations that affect your workers. As of April of 2008, all companies with 50 or more workers will need to notify and consult with employees about any changes in their employment which affects them which will substantially alter the work organization.
So as to create a smooth Transition you might choose to organize a team which is going to be in control of change-over difficulties. Make sure that all supervisors maintain their teams focused on their tasks during training. Provide all the necessary tools to ensure smooth cultural business restructuring. While implementing changes, compute accurately both the upfront and continuing costs of the modifications, and consider offering incentives for significant employees to keep them. You might want to seek out professional assistance with the process too; hiring an external restructuring team could diffuse some of the tension and guarantee a professional, well thought out restructuring. Restructuring a business is not an instant panacea. For some businesses, however, it may make the difference between always being in the red, and start to see some gains and potential for future expansion.