Key Concerns when Revitalizing and Restructuring Organizations

Key Concerns When Revitalizing & Restructuring Organizations

By Joseph Furnari, CPA; Partner, Tactical Solutions.

There are many reasons why a company ages and experiences fatigue. As this occurs, management usually loses “the pulse” of the operations and as a result, is unfocused in key areas. In this environment, it is difficult for organizations to recognize deterioration in their day-to-day performance.

Companies with strong management have the ability to identify these trends and often can “reverse” the trends and regain positive momentum. In order to restore and revitalize an organization, companies need to recognize the importance of communication.

When restructuring a company, it’s critical that key people are involved with all aspects of the planning, developing and execution stages of ‘the plan.’ By seeking input from employees, greater acceptance and buy-in will emerge, and support for change will materialize.

Over the years we have been involved in many companies where implementing changes has been challenging. Revitalizing a company becomes a major strain on its people and the organization. Discontent can be a common factor within the management team and often times will permeate throughout the Company.

There is a natural resistance to change and it is key to approach the effort in the appropriate manner. When recommending changes it is important that the benefits of the change are clearly communicated. Some of the common mistakes that can jeopardize a successful reorganization include the following:

Lack of a detailed strategic business plan that establishes the framework for the company’s objectives and time lines.
Collapse of constructive communication throughout the organization.
Lack of accountability and effective incentive programs.
Lack of analytical tools and timely information to track and monitor the company’s progress to effectively adjust strategies when required.
Cost reductions that are too severe and do not provide
the necessary resources to support the core needs of the
operations.
Implementation of short-term solutions that do not address the long-term needs of the company.

When instituting a major reorganization aimed at revitalizing an organization, management needs to be sensitive to these factors. To further enhance the probability of successfully introducing cultural and operational changes, it’s important to improve communication at all levels. Some helpful suggestions in this area would include:

Clearly communicate the general objectives and expectations of the reorganization to all employees at the company.
Establish a schedule for regular employee meetings to facilitate continuous dialogue at all levels of the organization.
Develop procedures to ensure that key information an operational metrics are reported on in a timely fashion.
Develop applicable steering committees to include various levels of management.
Survey various levels of employees to obtain feedback and provide a channel for communication.
Develop a Company newsletter and/or bulletin board highlighting current events.

Reorganizing a company is a major undertaking. It’s hard work and involves continuous challenges. Having a plan in place and a focused approach will greatly enhance the probability for success.

For more information contact:
      Joseph Furnari, CPA
      E-mail: jfurnari@tacticalsolutions-llc.com
      Phone: 781-303-0017
      Fax: 781-356-5450

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