Corporate Restructuring Course

• Introduction to Corporate Restructuring

• Strategy planning
• Being active or reactive
• Internal reasons behind restructuring
• External reasons behind restructuring

• Avoid waiting too long
• Conduct an honest assessment
• Review your strategy and business model
• Look for ways to achieve quick results
• Aim to reduce complexity
• Determine your core activities and processes
• Realistically assess workload
• Match leaders with specific tasks
• Manage uncertainty and resistance
• Stay flexible
• Seek expert advice

Resistance from Employees

Successful restructuring process requires support of the majority of company’s employees from all levels. The flow of internal communication should be from top to bottom of the organisation, but also from the opposite direction.

Company Obstacles

Many companies are never fully ready for deep, advanced forms of organizational restructuring. That is why many of them are not successful. We do not live in an ideal world and there is no gain without pain or mistakes. However, realizing the elements that have to be fixed to make any restructuring successful may help managers prepare better.

Planning Phase

• SMART objectives, ROI
• Budget for restructuring
• Internal communication to gain team’s support & give/get ongoing feedback
• Project team creation: x-functional, x-country
• One fully dedicated project manager/coordinator
• Project management tools and procedures in place

Implementation Test Phase

• Tests are needed to avoid the risk of big and costly mistakes affecting the whole organization

Measuring results against SMART objectives

• Measuring results against SMART objectives
• Corrections to implementation

• This is the most important part of the organizational restructuring process in its implementation phase. If a test is not successful, the whole organizational restructuring is in danger.

Full Rollout

• Measuring results against SMART objectives
• Corrections to implementation
• Large implementation projects are never mistake free.Companies should be ready to make the necessary corrections, as many times as needed.
• Typical mistakes in the planning and implementation of the organizational restructuring process

Mergers and Acquisitions

This is the most important part of the organizational restructuring process in its implementation phase. If a test is not successful, the whole organizational restructuring is in danger.

Legal Restructuring

A restructuring as such takes place when the changes in a company pertain to legal norms. These can be changes in ownership, legal business paperwork, agreements, etc.

Financials

Financial restructuring arises when there is a change in the capital structure of the business. These can be changes in debt structuring, equity, etc.

Repositioning

This change pertains to a transition to a new business model. An example of this can be when an IT firm

selling software products changes to being a service provider.

Cost-Reduction

A cost-reduction restructuring takes place to cut costs in the administrative and operations section. These can be automating procedures, downsizing, etc.

 Turnaround

Turnaround is the restructuring of a huge part of the company. It involves changes in the operations side, administrative, products, or services.

Divestment

Divestment is a restructuring procedure wherein a company sells an underperforming part of the business in the market.

Spin-Off

It is a restructuring process that employers use to attain a higher valuation of a part of the company. It involves making a particular business unit to be a company in itself while retaining ownership.

• Understanding current workforce
• Organizational structure
• Redesigning the jobs
• Redeployment and Downsizing
• Strategies for the new work staff