To Restructure or Not
17 May 2022
Over the past 6 years South Africa has undergone major economic, legal and industry changes, all of which have affected three main areas within business:- Resource Capacity, Operational efficiency, Cost StructureWhen GrowthbyDesign usually starts with a turnaround and restructuring project it has always been vital in identifying and assessing the following, in order for the project scope to be set up with the highest and most sustainable impact and the least cost.
Directorate and strategic decision makers being on the same page, speaking the same language(Clarity of focus) and how different their strategic direction is.- Identifying the perception of operational efficiency of each of the different operational head of departments on their own departments and that of their colleagues.(Operational Gaps)- Assessing of the organisational culture and the level of trust of the employees in the strategic and operational decision makers.
Assessing the impact of the most recent changes brought to the organisation and whether there is still resistance to change or struggles to the adaption.By assessing the above, decision makers are enabled to identify how easily any changes will be adopted within the organisation, this also enables decision makers to identify whether there is a united front or not for the change.If all of the above have been identified effectively and the assessments have come back with positive results, then and only then will the decision makers be able to move onto the next steps in turnaround and restructuring interventions with a higher ROI and sustainability Impact.
If however the assessments have not come back with positive results then the organisation must, as the first point of actions in their project plan, action affirmative/corrective measures in order to ensure inter departmental cohesion and the same language and clarity across the board in an holistic view of the direction of the company. It must always be a high priority to address internal customer and supplier satisfaction, to create the sustainable effect.
BE AWARE: Failure to conduct these measures will result in the manifestation of internal conflicts, a non-productive workforce, attrition of top performers, lack of clarity and trust in the communications of decision makers, a very slow and unproductive workforce resulting in cost of operations increasing as well as staff turnover and the cost of recruitment, resistance to change and ultimately a negative downturn to organisational culture which will result in the resistance of future strategic programs being adopted.We would like to take you through a process that we have found works for our clients.
