Restructuring
Restructuring a business can be defined by “making significant changes to operational or financial structure”. Reasons for restructuring can vary from mergers to workplace culture to poor cash flow. Whilst in most cases this can be a difficult or long process, it can, however, ultimately lead to a more organised and profitable business.
If you have been considering a business restructure, here are some things that may be involved for your business:
Reducing the number of employees which could lead to redeployments or redundancies.
Updating or changing job roles.
Altering leadership structure to reduce reporting lines.
Businesses should also consider these things when implementing a restructure plan:
What the strengths and weaknesses are of your business.
Identify what your current business strategy is and what needs to change.
Communication with leadership and other staff about the need for the restructure and how this will affect them, is essential.
Taking the necessary steps to action your restructure plan.
Provide any necessary training for new responsibilities or policies and procedures.
Ensure there is flexibility in your restructure plan so that you can adjust your approach as unexpected things may arise.
To elaborate further on these points, it is important to understand your strengths and weaknesses so that you can identify what you’re doing well to keep doing it and what you need to improve on. This can be done in conjunction with your current business strategy i.e. what about it is working and what is not.
In most cases you will need to consult with your employees. The consultation process may require you to notify all employees that will be affected by the changes/restructuring.
The consultation process is a very important process. The company will need to make sure they have the answers to the employees’ questions as this could cause some unrest within the workplace. Moving through the consultation process as smoothly as possible is of utmost importance. For more information about the consultation process, please speak to one of the HR Support team members today.
An important note on redundancies, should this be required, is to ensure that a correct process has been followed to avoid an unfair dismissal claim. It is also important that the process is free from discrimination and affords the employees procedural fairness.
Additionally, if your restructure requires changes to role requirements or a change in the company’s policies and procedures, training will need to be conducted. Training is fundamental to establishing a new way of doing things within your business, it should be made clear that you’re all on the same page and willing to work together for the best outcome for the business.
Taking action is imperative to making change. Planning and talking about change is a great step but actioning your plan will be the point of difference for creating change within your restructure. It is also good to keep in mind that things don’t always go to plan so ensuring that you remain flexible and openminded is of upmost importance.
Restructuring can be tough, see how we can help you by contacting the team at HR Business Assist.
HR Business Assist | 1300 138 551 | info@hrbusinessassist.com.au