5 Techniques for a Successful Corporate Restructuring
5 Techniques for a Successful Corporate Restructuring
The term “corporate restructuring” is an often-misunderstood term for what is a normal function of a healthy company. This excellent article by Lucidchart describes it as a broad term for a range of actions a company can take to address anything from a key employee leaving, to the company experiencing growth, to the company not performing as well as it should and failing to meet KPIs, and so on. In essence, it’s an umbrella term for the various ways a company’s leadership can adjust to the realities of their circumstances.
A huge number of companies are undergoing various forms of restructuring now; in the wake of the COVID pandemic, entire industries are racing to adjust to the post-COVID world, as well as changes in workforces, work locations, shifts in finances and so on. A poorly-communicated and executed restructuring has the potential to cause a lot of confusion and unhappiness, so if your company is looking to reorganize, read on for some corporate restructuring tips that can help the process go smoothly.
Technique #1: Recognize That Your Team Structure Doesn’t Match Your Team Size Anymore
It’s important to remember that positive corporate restructuring exists. As this article from Organimi points out, they can also be a result of positive changes like company growth or a change of core objectives, and can in turn lead to growth opportunities for the employees as the company’s leaders take a hard look at their org charts and make sure people aren’t being overloaded.
The answer in such scenarios could be a restructuring of the org chart to promote more managers, break sprawling teams into more manageable chunks, re-position employees as specialized individual contributors, and in turn create opportunities for employees to grow into new roles of responsibility.
Technique #2: Know Your Competitors and Their Goals
The Organimi article also points out, it’s important to be aware of what your company’s competitors are up to, and what their goals are. If they’re acting as disruptors, experiencing rapid growth or having to make changes to stay competitive, all of that can impact your industry and in turn your business. By being aware of their structure, their plans and their goals, you can proactively prepare your company for the future, instead of treading water and waiting to react.
Technique #3: Determine the Processes That Your Team Has, and the Processes Your Team Needs
If your team is growing, it’s vital to stop and take stock of how your team operates. Examine the processes you’ve put in place that direct how your team works, who they report to, how they communicate with one another, and assess whether those processes will be able to absorb a sudden increase of headcount.
By the same token, if your team has gotten so big that bottlenecks are appearing, you may need to break down your processes to identify where things are grinding to a halt and write new policy to correct the problems.
Also, consider having your company undertake a SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis. This process helps you develop a complete picture of all of the factors involved in making a major decision like a restructuring, and will help you develop strategies that can leverage your strengths and opportunities to overcome weaknesses and threats. Hence the name!
Technique #4 Establish a New Structure to Support Strategic Goals
After following the above steps to examine your company’s goals and opportunities for growth compared to its threats and internal pain points, you can start building a concrete plan for how you can best move forward, starting with a new organizational structure that better supports your goals for the future.
As Organimi observes, corporate restructuring strategies will vary company to company. As every business has its own strengths and weaknesses, and faces its own challenges within its market sector, there is no universal template for success. There is, however, one measure that every business should take…
Technique #5: Get Your Team Excited About the Company’s Future
You have to get your team onboard with the changes you’re planning – if people are uncertain what’s happening, or if there’s confusion around the purpose of the restructuring, it can lead to unhappy employees, key staff becoming flight risks, and a general loss of morale, all of which can grind your business to a halt.
To combat that, show as much transparency as possible. Help your staff understand why you’re making changes, how those changes will affect them, and what the future holds. Also, share your excitement with them about the opportunities this change will create. If you make them as excited as you are about the future of the business, they’ll be far more likely to meet those changes with open arms.
And of course, celebrate with your team! Don’t be afraid to show your appreciation for their sticking with you as you rearrange their work lives with some thoughtful gifts. Maybe that comes in the form of some new company apparel, or some employee appreciation gifts, or even an entire themed box of goodies in the form of a Merchology MerchBox!
And last of all – be patient. As organizational gurus Gartner point out in this article, true ROI takes time, and a restructuring is an investment like any other in this regard.
If you’re ready to spread the excitement about leveling up your team at work, let Merchology help you and your team build forward and celebrate your new company plan. Contact us today to start an order for some great company apparel and corporate gifts!