Restructuring

Restructuring
Do you find your company in a growth mode where your unable to handle the growth with the existing headcount for the company? Do you have the right headcount for the growth of your company; however, you see your profit margins diminishing? Do you find your company having trouble with accountability which creates unmet expectations in your business? Do you find yourself in a position where the message of the top executives somehow is not resonating throughout the company?
These are just a few of the indicators that the employee infrastructure of your company is not properly aligned with the business strategy. If this is happening, you will see either diminishing profits or lack of growth, and even lost customers. At this point in the life of any company you need to step back and see if you have the correct organization structure before even more damage will occur.

Restructuring a company involves assessing your current business employee structure and determining if it aligns with the company strategy. For most businesses, the changes in their competitive environment, including growth of the company (or even retraction of the company), have created inefficiencies in their basic organization structure. As success occurs in a company, there is a tendency to hire more people than you need. The other tendency is to create departments within the company that have overlapping roles with other departments. Finally, you will see the tendency for Management to create extra layers in the company in order for them to avoid either conflict or reduce their workload.

We never recommend that you wait for a crisis before you start the restructuring process. However, just because your late to the game, does not mean you don’t restructure your organization.

Part of the Solaris Core HR Objectives approach is to analyze the span of control within an organization. Conducting this analysis often reveals extra levels of management that is creating waste and poor communication. A well-structured span of control study will look at employee and supervisor functions and interactions. If the proper actions are taken by a company, a Span-of-Control Analysis can often create instant savings by improving communications overall, while reducing useless bureaucracy at the same time.