Business is constantly changing. In today’s workforce, change is always happening. Companies that don’t change with the times risk being left behind. Businesses need to experiment with new territories and products, and find the unmet needs in their market. Initiatives such as these often require restructuring. For example, say your company is interested in expanding a product line into a new market. Changes to the staff profile might be needed to better connect with the market. Also, there may be changes in policies and compliance in this new area that you need to follow.
The workday isn’t just 9 – 5 anymore. Traditional business models cater to the standard 9 a.m. – 5 p.m. worker. But with new methods of work including outsourcing and telecommuting, offices may require new systems, policies, and hours. Telecommuting, temporary employees, and outsourcing often require different parameters for performance management, compensation, and benefits. These are vital systems that need to be restructured when non-traditional employees are in the mix.
New methods of management. The traditional top-down management approach isn’t always what is best. There is a new behavioral approach to management that considers human resources a key part of success. Human resources departments have the ability to empower the workforce and give considerate leeway in day-to-day operations. Job flexibility and enrichment are key factors of this new structure. In order to be successful, the lines of communication must be open and strong. Top management only needs to intervene when creating the strategy and ensuring compliance.
Up-to-date technology. Businesses are always looking for ways to improve efficiency, and innovations and technology often play a role. Technology-centric changes require restructuring to maximize potential and minimize everything else.
Growth due to mergers and acquisitions. Each time a company takes part in a merger or acquisition, restructuring is necessary. Reasons for the restructuring include eliminating duplicate departments, merging systems and procedures to make sure everything is running efficiently and accurately, and incorporating the preferences and work methods of the new owners.
Compliance. Legal or statutory requirements are often updated and changed, and your company should be aware of these changes. Restructuring as a result of legal requirements is often necessary, as it’s important to be in compliance with these changes.
Any time a business restructures, they are initiating change. It’s important to stay positive and communicate with employees, as people tend to resist change. Ensuring the workforce that the change is a positive benefit for the organization helps put people at ease throughout the process. For more tips on restructuring your business, contact us today!