All business sectors hover in a constant state of flux having to adapt to frequent changes, marketing conditions, ambitions of owners and the economic climate. The need to “re-organise” and “re-set” constantly is seen as the new norm.
Business re-organisation and restructuring offer every company the chance to put things right and to think carefully about the company’s future. Thus, an understanding of how business organisations should work is a useful starting point for restructuring them.
At the forefront of any fundamental improvement of a business are a set of core assumptions tested by the DDP team at the outset of any engagement including:
- Capability – What should the new organization be capable of doing?
- Accountability – Will managers know what they have to achieve?
- Possibility – What are the realistic options for a new structure?
- Feasibility – What constraints might hinder the pursuit of the best solution?
- Flexibility – How quickly could or should changes be made?
DDP believes that re-organisations and restructurings are a top-down activity that should be driven sequentially by as many as 15 key steps/activities ranging from: understanding the context of a company’s current state to deriving the appropriate project management frameworks to tackling outstanding problems with personnel / employees.
Whilst nearly every re-organisation and restructuring initiative aims to cut costs and to boost competitiveness and profitability, such activities will also result in new investment in some other parts of the business – to rationalize processes, introduce modern technologies and serve customers in new and better ways. However, these restructures are often not successful, as there are frequently hidden operational traps. DDP seeks to reveal these traps and unlock the business’s growth.