Business restructuring through strategic planning
What happens when your company is struggling with the bottom line? If you have bottom line concerns you will need to consider restructuring your business. This can invoke fear in people because it normally means you need to cut your workforce or you need to reduce something with the company. Cutting your workforce is not an easy task and it is one that you really need to try and avoid if you can. Business restructuring may be the only thing you can do in order to keep the business alive. One option you have is to talk to your employees about reducing hours. This way everyone will be able to keep their jobs but they won't be paid as much. This can mean some people will quit but for the most part it does show your staff that cutting their jobs is really one of the last things on your mind.
Strategic planning is important when you are restructuring a business. In most cases companies really do not plan well and this is what causes the company to lose a lot of money or other things. Usually the companies are so focused on cutting costs that they fail to really look at how they can make a positive outcome for the business and to find a way to point the company in the right direction. To help you make the right decisions when it comes to business restructuring here are some guidelines that you need to follow.
Have a clear direction
Before you just go in and fire a bunch of people you need to first lay out some goals and point the company in the right direction. Have the focus necessary to move the company in the right direction instead of thinking about the here and now. If you make smart changes and inform the workforce of these changes it will make it easier for them to prepare for them and to adapt.
It is a wise idea to start organizing the company to see where you are wasting money. Perhaps you have overproduction and this is causing you to have a lot of waste. Maybe you have too many employees working on production lines and not enough focusing on sales and marketing. Look for all the areas in the company that are in need of improvement and find ways to save money.
As you are designing a new strategy for the company you need to focus on each job duty that you have. Some employees may have useless jobs that could be cut. Others may have too many things on their plate and it needs to be balanced with others in order to improve productivity. All of the jobs within the company need to add value to the organization.
Once you have a new strategic plan for the company the only thing left to do is to implement your new strategy. Sit down with your staff and go over the new policies. You may change hours and cut benefits or other things but if it saves jobs, your employees may understand. If productivity increases in the future you do need to make sure the employees understand that you will try to give these perks back to them once the company is in a better financial position. The first 6 weeks of the implementation phase are the most critical to the company and this is where you really need to work on making the changes quickly so you can start seeing results for the company and improving your bottom line.