Process of Restructuring
Chapter 2
2.1 Restructuring Process
- Top management's urge to change
- Creating a vision
- To help direct change effort
- Develop strategies for achieving vision
- Form empowered core groups (Change agents)
- Communicating the vision & strategies to all employees
- Getting the support of the people (Selling the concept & carrying the people along)
- Redesigning the process/ organization changing systems/ structures that become obstacles in achieving the vision.
- Create short terms wins - "Quick Hits" - to maintain the enthusiasm throughout the transition processes
- Implementing the changes & consolidating the improvements
2.2 Opportune Moment for Business Restructuring
Most companies follow a natural cycle of existence, dipping during their early years before starting their long climb. However the peak is usually followed by a decline. It is prescribed that one needs to preempt this slide: start a new business curve before the situation worsens.
If a company waits too long to address problems with its business, the resulting restructuring may be very painful. This may deter executives from taking the full measures that are necessary to return the business to a sound footing. Or the resulting restructuring may severely disrupt the business. The key is to recognize the problem as early as possible. This is why it is recommended that companies do a "restructuring audit" on their businesses periodically, looking for opportunities to create value by voluntarily restructuring, before circumstances leave them with no choice.
