There are many factors that go into the decision to implement an organizational restructuring. It is important to consider whether the changes will improve the efficiency of the organization and make it more centralized. Additionally, restructuring must consider the employee’s ability to adjust to a new environment, as well as the efficiency of the organization’s machine.
Overall, a successful restructuring process will help the organization focus on its goals and work more efficiently with strategic plans. If the changes make it more difficult to achieve the organization’s goals, consider other options. It takes time and excellent communication to help all employees keep the end goal in sight. Click here for more information about restructuring.
Implementing a new business model
When implementing a new business model during an organizational restructuring, you need to consider several key factors.
You need to gain rapid clarity on future organizational needs while minimizing excess. By using a zero-based asset and organizational analysis, you can reduce costs and improve employee morale. You also need to identify which activities have the highest impact and demonstrate how you will right-size headcount, supply chain, and footprint to meet those targets.
Changing ownership
It is crucial that you plan the transition of ownership properly. You should communicate the new owner’s intentions to the employees in a timely manner and give them time to adjust to the new ownership. Communication with employees is essential to avoid disruptions during the transition process. Employees will also want to understand the new ownership, and how this will affect their position or department. If you can communicate with employees in a timely manner, this will ensure that everyone stays on the same page and the transition goes smoothly.
The Kubler-Ross change curve plots key emotional points that a person must go through in order to process a change. First is shock, denial, and anger. These points are shared in common with the stages of grief.
The low point of the transition period is marked by depression. The experiment is the next stage in the process. It coincides with a person’s first real processing of the change. This is followed by the decision to adapt to the change, and finally acceptance. Clear and consistent communication is integral in bringing your employees through the restructuring organizational process as quickly and painlessly as possible. This will ensure your staff retention rates remain high.
Changing channel management
Channel management is a complicated and huge process. Companies seek to establish a channel network to increase their reach, lower costs, and increase productivity.
Channels can also provide better support to their end customers, increase revenue, and create powerful “stickiness” through distribution. Changing channel management as part of organizational restructuring will require a comprehensive assessment of the company’s channel management structure and rigor. Keep these four points in mind for your analysis.
- Changing HR policy
Changing HR policy during an organizational restructuring requires the coordination of both HR and management. This change may require extensive documentation, but it is essential that HR professionals work closely with managers to effectively implement the changes. It may be difficult to hire more workers in one go, so HR should consider hiring workers in small increments. This will enable a thorough vetting process. This change may take years to fully integrate into the company’s culture.
Hiring a legal team can be expensive in the short term but can prove to be beneficial in the long run. Compliance with state and federal mandates is essential in order to restructure effectively.
- Changing production
Reconfigurations are often more successful if executives prioritize changes while maintaining continuity. Using organization-wide processes and practices to establish common ground can facilitate the transfer of units and the transition of production processes. It is vital to understand what role each position will play in the new structure. When determining the best way to structure the new company, it is essential to consider the types of employees that will be needed. For instance, a small business dealing in customized materials will require fewer skilled workers than a large manufacturer.
- Changing communication with consumers
A company restructuring can be stressful on employees, especially if the change is large-scale. In addition to downsizing, restructuring can lead to more efficient operations, by reducing the number of layers of management. Outsourced operations are often less expensive than in-house labor, and they also improve communication and decision-making. However, there are many disadvantages to this approach.
- Changing communication with employees
When it comes to change management, communicating with employees is an integral part of the process. In the best-case scenario, effective communication will decrease the likelihood of resistance, ambivalence, and lack of understanding. On the other hand, a poor communication strategy can lead to employees losing motivation and direction, lowering productivity and impacting the bottom line.
