Featured post

What Do High Growth Businesses Do Differently?

Over the past 5 years the importance of the “High Growth Business” and how this relatively small group of businesses disproportionally impa...

Thursday, 16 July 2009

The 5 Stages in a Business Restructure- Taking Your Business to the Gym

Most Businesses at some time or another will need to restructure their business. In times of recession this becomes an important priority as a business restructure is often the key to survival. In truth all businesses should plan a restructure review to keep their organisation "light & agile" to quote Jack Welch. These past 8 years business conditions have been particularly benign and as a result many businesses have not felt, sufficiently, the cold wind of competition to encourage them to restructure. Now faced with a veritable storm of fierce competition the need for a business restructure becomes urgent.

Stage 1 of a Business Restructure is to establish a baseline. Before imposing change the company would need to understand what is working well and what is not. So to confirm this it is important to perform an audit on the business covering all the main operational functions and in addition we'll look at Strategy, and management strength.

Stage 2 of a Business Restructure is to prioritise the issues identified and set out a timeline for their implementation. At this stage of a business restructure its important to achieve some quick wins as this builds confidence in the process.

Stage 3 of a Business Restructure is to revise the business strategy based on the outcomes from Stage 2 which will identify weaknesses and gaps in your current strategy. This part of the business restructure process is critical as it will lay the foundations for the long-term success of the business. The difficulty, particularly in a recession is that there are serious time pressures. In order to prevent a long drawn out soul searching process we have developed techniques to get to the nub of the matter in a few short hours and within a couple of days we can have a new and more relevant strategy in place.

Stage 4 is the most difficult part of any business structure and that is implementation. This is the point at which most businesses fail, why? Because it is at this stage that the rest of the business experiences significant change. Everybody, with the exception of a few souls, is resistant to change. It is at this time one needs to be clear about what individuals say and what they do. To improve your chances of success a detailed implementation plan needs to be established.

Stage 5 of a Business Restructure is to assess the success of the restructure by measuring the results of decisions made. This review and measurement system should cover all aspects of the business but concentrated on a relatively small number Key Performance Indicators. In addition the company should seek to ensure that the benefits identified that the beginning of this process are achieved.

Exigent Consulting specialises in providing Business Turnaround, Sales, Marketingand Mentoring to the Small and Medium Business. We help Business Owners improve the profit performance of their business

No comments:

Post a Comment