6 steps to approaching a restructure

By on October 22, 2014
restructure

The success of a restructure is dependent on the approach.

“An integrated approach to implementing new organisational ways of working plays a vital role in the success of restructuring within an organisation,” says Seugnet van den Berg, MD at management consulting firm Bizmod. Resturcturing is often associated with negative connotations and the mere mention of it can cause disruption and unrest amongst employees and other stakeholders.

To avoid any restructure-related interruption, van den Berg suggests a 6 step approach addressing both organisational design and restructure framework:

  • Strategic alignment

To commence any project of this scale, it’s important to gain an understanding of the organisation strategy and the requirements at a functional strategy level. The phased approach for achieving the strategic goals is also developed during this stage.

  • Target operating model

Defining the operational framework to deliver a phased approach to the restructure.

  • Organisational structure

Determining the capabilities within the structure and the associated budget requirements. Roles, levels of work and structure are also aligned in this phase.

  • People mapping and HR integration

This phase involves the integration of the HR resource as well as the mapping of people from current to new roles.

  • Leadership preparation and alignment

Van den Berg says that the preparation for changes and the integration of a new way of thinking is critical to garnering assurances of support, commitment and involvement in the process. “The coaching of the leadership and management teams is not a phase to be taken lightly – much time and work is required here.”

  • Change management and communication

In this phase a communication plan should be developed and delivered to the identified stakeholders affected by the process.

Van den Berg cautions organisations looking to undertake the restructure process as an internal project. “Majority of human resource departments are not equipped to deal with such extreme changes to their organisations. Appointing an external team that have prior experience and little to no attachment to departments or the organisation as a whole are able to guide internal teams through the process in a much more effective manner,” says van den Berg.

“Ultimately, any spend in this realm will see far more return from external project managers, as opposed to an internal team navigating such a complex path,” he concludes.

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