It would be an understatement to claim that the business market is far from ideal at this point. While we could always discuss the geo-political and global economic reasons behind this situation, there seems to be a more pressing matter at hand – restructuring the business and leading its financial recovery. In non-technical terms, this process requires making organizational changes to encourage growth, elevate profit margins, and increase revenue. Even though each business is a microcosmos of its own, certain restructuring strategies will just work across the board.
As with almost all processes that bring huge changes, business restructures, mergers, and reorganizations must be thoroughly planned. Before beginning the restructuring process, each business should identify its long-term goal. Of course, these goals will vary across companies. For some, they will include anticipating new potential market entrants, while for others, they will mean overcoming debt and increasing savings. In sum, setting them will never be easy, as most goals will entail either downsizing or budget cuts. Thus, before diving in, management should prepare themselves for a long and complicated process.
After the goals have been set, the next step is plan formation. This requires explicitly identifying the problem areas and defining the actions to address them. Ideally, each action should be divided into several steps, which will in turn have a definite purpose and time frame. Similar to the previous step, this one will also involve making difficult decisions, such as downsizing and potentially shutting down product lines. However, with a plan in place, the management department will find the best solution for all involved.
The two steps described above seem simple enough – identify the problem and find a solution. However, while fairly simple on paper, these steps are not as easy to put into practice. In truth, the majority of companies struggle to identify their weak spots and are thus unable to find adequate solutions and begin their restructuring process. If your business hits this particular wall, it may be time to seek some expert assistance. While this may not be common knowledge, certain law firms do offer restructuring services to clients. Thus, instead of management racking their brains around these issues, consider finding law firms in Sydney CBD to do the work for you. They will know exactly which rocks to turn and will compose a plan that benefits the business as much as the employees.
Once a business decides to restructure, the entire operation must be taken into consideration. In other words, certain departments or lines cannot be left out of the restructuring because of certain preferences. Such a practice runs the risk of issues going unnoticed and thus unresolved. However, because employers oftentimes do have unconscious preferences, it’s recommended to bring in an outside expert to assess the restructure with a fresh pair of eyes. This way, no stone will be left unturned and your business will be given the best possible chance.
As with any plan, a business restructures also comes with a few uncertainties and what-ifs – the secret is to anticipate them. Thus, before setting any restructuring plan in motion, consider all the repercussions that it could bring. Think of both the likely and almost impossible challenges that could arise and devise a plan to meet every single one. For instance, consider the employees’ reactions and a way to bring them on board. Examine the legal repercussions that may arise because of downsizing and see how all parties could get a decent deal. Finally, even though most of these issues will not come up, having a plan in place will surely make the transition that much smoother.
Even though a business may be registered under one name, its restructuring will have an impact on dozens of people. Because of this, it’s pivotal to establish a channel of open communication within the company. Employees should be directly informed of the changes ahead instead of hearing them via third-party channels. Of course, this does not entail giving out information without having a plan in place. Instead, management should first form a plan of action and then schedule a meeting with all those that will be affected. Once they understand the situation and feel involved, employees will be able to communicate their ideas and potential disagreements more freely.
A business restructuring is by no means an overnight process. It takes dedication, time, and the willingness to make smart and at times difficult executive decisions. However, while complicated, restructuring is often necessary to keep a company in business. Thus, if your business appears to be struggling, consider the steps above, and don’t forget that transparency should always come first!