When Would a Company Need to Restructure and How Can a Restructuring Consulting Firm Help?
Are you planning on restructuring your business but have no idea where to start? Are you worried that your managers aren’t equipped with the right skills to properly deliver termination notices during a big layoff? With such big change comes a lot of fear and anxiety. Fortunately, a restructuring consulting firm can help you manage the entire process from start to finish.
Before we explore the benefits of hiring restructuring consultants for this difficult task, let's take a quick look at why a company may choose to undergo restructuring in the first place.
Reasons for Restructuring
- You’re losing money
This is probably the simplest and most obvious reason to reorganize the structure of your business. Something clearly isn’t working, and maybe you don’t know what that is, but you need to make a change immediately.
- The nature of your business has changed
Perhaps you are experimenting with a new kind of product or service, or maybe you are targeting a new audience. Either way, if your concept has changed, your processes need to change with it.
- You’re updating your technology
With all these new advances in technology, many companies are changing the way they do business altogether. If you have employees telecommuting, for instance, you may need to restructure a particular department within your company.
- The company has changed hands
A buyout or merger is typically a catalyst for restructuring since the new owner may have a completely different vision for the company. This new leader may want to start fresh in order to run things more efficiently on his or her terms. Of course, this is not always a bad thing. For instance, a new owner may want to implement an employee recognition program – after all, 86% of companies with this practice say that it increases worker happiness.
What does a restructuring consulting firm do?
If your business is failing and you can’t identify the source of the problem, restructuring and strategic human resources consultants help you assess and implement new ways to make a positive difference in your company.
They will quickly alter problematic processes in your company to help you decrease costs, increase profits, and optimize your workforce. Throughout this complete overhaul of your business, consultants implement strategies to reduce stress and minimize the loss of morale among your employees as well.
Because restructuring often involves downsizing, layoffs may be inevitable. A restructuring consulting firm helps you manage the layoff process and minimize the potential risk of legal action from disgruntled former employees. They offer supportive outplacement services, training for managers in notification logistics, and career counseling to make the transition as smooth as possible.