The 5-Step Process That Will Allow You to Reorganize Your Business Model

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As a business grows, it will face new obstacles and market situations, many of which are unexpected. Companies must be flexible and prepared to change track to take advantage of opportunities or eliminate inefficiencies if they want to compete in a market that is highly saturated and competitive.

Making difficult decisions is frequently necessary, whether it involves reorganizing the company's strategic and financial operations or doing so entirely. But carrying out such organizational changes successfully is a challenging task. It needs a vision, a strategy, and—most crucially—the involvement of all staff members and stakeholders.

A haphazard strategy or restructure that lacks support from the C-suite on down will fail. So how can you successfully and effectively reorganize a business?

This guide has the answers.

1. Determine the Current Responsibilities and Roles of the Business Units


The current organizational structure, business units, and duties carried out by each employee must be carefully examined to maximize organizational performance.

Before the reorganization can be effectively planned, it will be necessary to have a thorough understanding of each employee's tasks in their roles—this aids in avoiding any unnecessary value loss throughout the reorganization process. Use your org chart to ensure no apparent skill gaps in your new organizational structure.

If staffing headcount drops and there is doubt about who is responsible for what, organizations must also be adaptable and careful not to put excessive additional tasks on employees during the transition.

2. Consider Your Options And Create A New Structure.


It's time to develop a new organizational model after identifying the issue with the current corporate organizational structure, getting input from staff and important stakeholders, and considering all the current job responsibilities.

Keep in mind that this newly reorganized model is only a first draft and will and should evolve before implementation. The following should be part of the new organizational structure:

  • both the vertical and horizontal lines of authority
  • characteristics of personnel, such as their experience and abilities
  • a list of those who will have formal decision-making authority inside departments
  • The definition, connections, and arrangement, between all of the functions inside the organization
  • Discuss the advantages and disadvantages of various organizational structure types, such as hierarchical, matrix, and horizontal.

Making an org chart is the greatest way to visualize your new structure's layout and interdependencies as you consider your options for company reform. You may choose from a choice of org chart templates on Lucidchart. You can also input employee information from sources like Google Sheets, Excel, BambooHR, or a CSV to have an org chart generated automatically that you can modify as needed.

3. Seek Out Opportunities to Automate


The foundation of digital transformation is automation. It's one of the quickest and simplest methods to make each of your team's business procedures more engaging and satisfying while also increasing efficiency. According to a McKinsey analysis of productivity and automation, "around 60% of all vocations include at least 30% of constituent operations that may be automated."

For instance, does your customer service team spend a lot of time each week obtaining contact information from potential clients? The first lead information collection process can be automated with chatbot software, freeing up your team's time to pitch those prospects.

Does your human resources director spend a lot of time entering benefits information for new team members? Invest in a platform for human resources that enables employees to input their information directly, and your HR director will have more time to work on important tasks.

4. Get your investors involved


Your investors might be the first to call if times are rough. They may have invested money with you hoping to receive lucrative returns or speedy growth. They'll also want to know your strategy for safeguarding their investment as a recession looms. You'll have the best chance of surviving the storm if you keep them informed and actively engaged.

You might need to change your shareholders' agreement to reflect these changes if you can renegotiate the conditions of their investment. Make sure you consult your legal counsel and get professional guidance immediately.

5. Learn, Course Correct, and Implement Feedback

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No matter how much planning and attention you put into a reorg, expecting it to run smoothly right away is impossible. That doesn't mean that you have to completely change the design as soon as you run into a problem. But in keeping with the logic of your initial goals, you must encourage everyone to identify the new organization's issues, discuss potential fixes in public, and put the necessary fixes into place as quickly as possible.

Once the restructuring is complete, it is critical to establish channels of contact for feedback. People may take longer to adjust to certain areas of the reorganization than others, so having a place to voice concerns might speed up the process. You can use your feedback to enhance your department or acknowledge what's working well.

Final Words

Restructuring the business model can be a crucial step in helping your company adapts to a shifting environment. It's a difficult time. Still, with a strategy-aligned plan, dedication to flexibility, and communication, you may give your organization a good chance of survival and return to profitability.

That’s all then!

We hope that this article was helpful to you. If you have any questions, let us know in the comment section below.


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