Business restructures have the potential to be incredibly complicated, which is why it’s important to make sure every option is explored to ensure that they are a success. Here’s how…
There’s nothing clean and simple about a business restructure. There are likely to be plenty of spinning plates and arrangements which need to be made, which means that it is absolutely essential to have a carefully thought out plan that every decision-maker is on board with.
So, what steps should a business consider if business restructuring is on the horizon? Whether it’s assigning various tasks to specific members of the team, through to planning the launch of the restructure, plenty needs to be done – and done in a timely manner.
So, to find out more about the steps a business should consider when planning a restructuring, read on…
5 Steps to ensure a Business Restructure Goes Ahead Smoothly
1. Put a Transition Management Team in Place
If you want to ensure that a business restructure goes off without a hitch, it’s important to have the right people in the right roles. So, it’s a sensible idea to dedicate employees and management staff to different roles, which enables them to own and execute the entire process.
You can do this by identifying the roles which need to be filled and the candidates with the necessary skills to carry them out. For instance, it may be a good idea to have the following roles appointed during the course of the restructuring process:
- A decision maker: someone who has the final say and understands exactly what the business needs moving forward.
- An Analyst: someone who can use and manipulate data to ensure that the correct approach is being taken.
- A design expert: someone who is able to model the restructure, along with any relevant reports and communications.
It is important to note that getting too many people involved with the details of a business restructures could work against you. Having a core team of focused individuals is the way to go, as this will ultimately help to protect against any potential infighting that would end up delaying the process.
2. Have Clear Communication Channels with Everyone in the Business
If you’re planning a business restructure, it’s absolutely essential that everybody who has a stake in the business (employees, partners, shareholders, etc.) understands exactly what is happening and when.
When you’re dealing with the organizational change of this scale, it is much more beneficial to be open and honest about the intent and what will be changing, even if this means you may be ruffling a few feathers. If everybody feels secure and knows what their roles will be during the course of the restructure, you can be sure that everybody will feel much more secure and be able to quickly adapt to the new circumstances.
Of course, you don’t need to reveal every minor detail that may otherwise be sensitive (such as salaries or role changes), but it’s a good idea to share as much as you can.
3. Identify What Works and What Doesn’t in Your Current Organisational Structure
When planning a business restructure, you need to consider where your current organizational structure is falling short, and also where it may be meeting expectations.
You can start this process by creating an organizational chart that shows exactly what the makeup of the company looks like and who reports to who. If you are able to construct this and get subsequent feedback from everybody in the business, you’ll be able to see where things are running smoothly and where some elements are hitting snags.
For example, by completing this process, you may identify a way of organizing certain sub teams which allow for greater efficiency. Or, you could place individuals in new roles which helps to streamline the process from the bottom of the company through to the top.
4. Follow Through with Restructuring Plans
If your business is going to undergo something as important as a restructure, you must be certain that you will be able to follow those plans through to completion.
Many businesses make the fatal mistake of starting restructuring plans, only to run into an issue and then put said plans on hold. In many cases, the plans never get picked up again and are left in a permanent limbo – meaning valuable time and resources were wasted with nothing to show.
So, once you start your business restructure, you should set a precise timeframe in which you want everything to be completed. This commits everyone to make the process a success, no matter how circumstances happen to change over time.
5. Seek the Expert Advice of a Commercial Law Solicitor
The truth is, sometimes we all need a little support and guidance from the true experts on these types of matters. So, if your business, or someone within the business, has ever gone through a restructure before and you aren’t sure where to start, it may be worth speaking to a commercial law solicitor.
A commercial law solicitor can sit down with your business to review your current situation, assess what is working and what isn’t, and propose clear solutions for how things can change moving forwards.
These sorts of conversations won’t be easy and, in some cases, a lot of home truths will be provided. But, you can be sure that you will have a clearer idea of how you should proceed once you have gone through everything in detail.
Is Your Business Considering a Restructure?
In this post, we’ve discussed some of the most important steps your business should consider taking if you are planning to restructure. It’s never likely to be an easy process, but by following these pointers, you should have a clear idea of how to proceed.
Is your business planning to restructure? If so, why not leave a comment below with your thoughts?
Please be advised that this article is for general informational purposes only, and should not be used as a substitute for advice from a trained business professional. Be sure to consult a business adviser if you’re seeking advice about restructuring your business. We are not liable for risks or issues associated with using or acting upon the information on this site.