How to Restructure your business for more success in 2021
Businesses grow, they change, they evolve. Markets change, circumstances change and sometimes you find yourself in:
Check mate! Time to Restructure and here is how:
Running a business is like playing a game of chess.
The game changes, pieces move, your “king or queen” may be threatened at any time!
The pieces on the board move, each move brings new challenges OR advantages. You want to be sure that when you “check” and “check mate” you are ready to win the game!
If you play the “same game” each and every time – you’ll be hearing “check mate” more often than not!
Businesses grow, they change, they evolve. Markets change, circumstances change, we have access to resources.
Often, we try and “keep things the same” but the truth is, when you have an objective look at your business, you KNOW that you need to make changes.
It is scary, it is daunting and it is a process that feels like a minefield.
In this article I will share WHY you need to make change, the advantages and challenges, and of course HOW to make those changes to ensure that “everyone wins”.
What IS the name for this change? Restructure…
What is a restructure?
Restructures can be done at any time and for many different reasons. From the changing environment to new business methods, new technologies, company buyouts, mergers or acquisitions, or changed business directions just to name a few.
In this article we are focussing on your team!
It is in essence “moving your team into different roles so that you are able to operate in the most effective and efficient way.”
Why do you need to consider a restructure
Just as a chess board changes move by move, so too does the business landscape.
Roles may have been taken over by technology with more structure and focus.
The business may no longer need or staff in their original roles.
Staff may simply want to grow!
Advantages of a restructure
As a business owner you ultimately want to retain your loyal, skilled staff.
Often a restructure allows your team members to grow and learn.
In THEM growing it allows YOUR business to grow.
The advantages of a restructure is a “win win” situation.
The Challenges on Organizational Restructuring:
Organizational restructuring can be one of the hardest changes that a company can make, but is sometimes necessary in order to transform a business from struggling to surviving.
The key elements in a restructure are:
The restructure needs to be established considering what is best for the business.
Everybody needs to understand the vision and where they fit into the new structure.
The restructure needs to be rolled out effectively.
Can you force staff to take a restructure?
If their job that is no longer available then Redeployment or Redundancy are the only options.
What is the ultimate goal of a restructure?
To create efficiencies and enhance profitability.
How does one proceed with a restructure?
As with all things employee related, restructuring your organisation can be a complicated and sometimes messy process and it must be handled with extreme care and consideration.
Step 1 – Having an accurate map of your current structure
In order to understand where you are now and what is and is not working in the current structure, you need to be able to understand where all the moving pieces are.
Having a 3rd party involved at this point is essential. Someone who is able to offer logical, solid advice. At Amber Business Support we have seen how having our team involved from the get go allows for a smooth restructure process, particularly in small businesses.
Step 2 – Establish the business goal
Is it to upsize, to down size, grow the business, systemise and process the business, or perhaps even prepare for the owners exit strategy.
Once you know what you WANT it is far easier to create a clear path to achieve this.
Step 3 – Create a new strategy
It is time to establish:
- What does the new structure look like?
- What skills are needed & where?
The new structure may mean new duties or tasks for some or even all employees. It must be fully understood and used as a basis to make the decisions about who stays, who needs to be re-trained and if redundancies are part of the strategy.
Staff who are able to adapt, learn and grow allow for a smooth process (for them and you).
Be strong and unbiased in your decision-making process and act accordingly. The decisions made at this stage will be the “make or break” of the restructure.
Step 4 – Communicate with your team
This is the stepping stone of a successful restructure.
The restructuring process is not an easy one and you need to ensure that the staff understand some critical details to make them feel included and engaged.
These are: why they are with you, what you expect from them and what they can expect from the new structure and company direction in return.
Step 5 – Action the new strategy!
Working with a dedicated, knowledgeable consultant will ensure that you remain compliant with regard to Fair Work. This includes: updating of contracts, remuneration levels, training, and ensuring staff morale stays high.
In conclusion, changes are never easy, but they are always vital for staying in business. A restructure will ensure your business survives, competes, and flourishes through tough times.