As businesses enter new life cycles, they often need restructuring or reorganization for a number of reasons. An organizational chart may need to undergo a periodic overhaul in order to: address a critical performance problem, unlock an opportunity to increase revenue for shareholders, expand, downsize, or due to a merger and acquisition. Whether you are a growing start-up or an established company, you will require an organizational restructure sometime down the road.
Deciding on strategies to help you achieve your organizational goals is not a clear cut process to be taken lightly. The following strategies are key components to help companies restructure.
Map out the Destination
Take an inventory of where the business is now, and where it needs to be, to improve your org performance
Identify the Existing Roles and Responsibilities of Business Units
In order to optimize organizational performance, taking an inventory of the existing framework, business units and tasks performed by each employee needs to be carefully analyzed. Organizations need to be flexible and careful to not overload employees with too much additional workload during the transition if staffing headcount goes down and there is a lack of clarity for who is accountable for what. Restructuring a company can improve efficiency, keep technology up to date, or implement strategic or governance changes made by, or mandated to, company owners.
Restructuring to Increase Competitiveness
Differentiate and leverage strengths against the competition. The continual search for new organizational forms is driven by basic changes in the nature of competition and the economy. If your industry is moving fast or faces disruption, adapting to the conditions of the market will be critical to winning market share. When there are external forces and headwinds at work, businesses have no choice but to realign, restructure and reorganize to become more competitive or to retain their position in the market.
Growth Through Acquisition
For a company striving to grow, an acquisition can provide opportunities to access new customers and markets otherwise out of reach. Designing, implementing and change management will be critical for the successful merger of two organizations. Introducing significant changes into a well-established organization is likely to be difficult, emotional and complex. It is important to maintain the key talent from both organizations in the process and make efforts to create an open and transparent culture throughout the transition.
Cut Costs Through Evolving with Today's Modern Workforce and Launching a Virtual Business Unit
Perhaps it is time it evaluate what is happening in your industry and decide if it is time to launch a virtual unit within your organization. Though this may challenge an existing traditional organizational design, it may afford efficiencies in terms of cost cutting office space and in terms of overhead labor costs. Could you outsource a business function or set up a temporary business unit to achieve an organizational goal? This transition will require a new management framework more centered around results and telecommuting resources.
Establish a New Structure to Support Strategic Goals
Regardless of your organizational needs Cortech will assist you to take the best path for your organization. Trust us at Cortech to handle each of the services listed above in ways that will meet and surpass your expectations. We look forward to hearing from you.
After taking an inventory of where you are, where you want to go and who is coming with you, it is time to design the new org structure. Most companies usually organize around functions, business line, customer segment, technology platform, geography, or a matrixed combination of these. Accountability parameters need to be defined for both vertical and horizontal authorities.
Trust us at Cortech to handle each of the services listed above in ways that will meet and surpass your expectations. We look forward to hearing from you.