Alex What do companies do when they restructure?
When a company restructures internally, the operations, processes, departments, or ownership may change, enabling the business to become more integrated and profitable. Sometimes, a company may need to admit defeat and begin selling or liquidating assets to pay off its creditors before permanently closing.
Can companies restructure?
Restructure definition A company restructure may result in a change of job role, or shift in responsibilities. In some cases, however, the restructuring process may result in the loss of jobs. Therefore, the two processes may be linked as the restructure may lead to redundancy.
What is the effect of restructuring?
Theoretically, restructuring leads to a more efficient and modernized entity, however it may lead as well to the deletion of jobs and the layoff of personnel. The procedure of restructuring generally focuses on problems with financing debt and very often, involves selling portions of the company to investors.
What happens when a company restructures its workforce?
Regardless of the reason for restructuring, it’s imperative that your company consider your workforce and the potential impact on your employment brand during the restructuring process. Restructuring usually comes with a displacement of employees through layoffs and early retirements.
How to thoughtfully communicate a company restructure?
How to Thoughtfully Communicate a Company Restructure Restructuring is a strategy through which business leaders change the direction of their organization in order to remain competitive. Many cases of restructuring involve downsizing. The company may dismiss employees, eliminate departments, or close some of its retail locations.
Is it better to have a restructuring plan or outsourcing?
When employing a restructuring communication plan, it’s better to focus on the fiscal health of your company and not the outsourcing. Transparency, yes, but about what leads up to a company’s need to restructure, not celebrating the benefits of doing so.
What happens if you don’t do a restructuring?
Failure to do so means the restructuring may be delayed, or not happen, to the detriment of all parties. Inter-claimholder conflicts played a large role in Navistar International’s restructuring.
How to make restructuring work for your company?
In an excerpt from his new book, HBS professor Stuart Gilson outlines the keys for a successful corporate makeover. Plus: Gilson Q&A. The following excerpt is taken from the “Lessons of Restructuring” section of Gilson’s introduction to Creating Value through Corporate Restructuring.
How to Thoughtfully Communicate a Company Restructure Restructuring is a strategy through which business leaders change the direction of their organization in order to remain competitive. Many cases of restructuring involve downsizing. The company may dismiss employees, eliminate departments, or close some of its retail locations.
How does a corporate restructuring affect the value of the company?
Restructuring affects not only the value of the firm, but also the wealth of individual claimholders. Disputes over how value should be allocated—and how claimholders should “share the pain”—arise in almost every restructuring. Many times these disputes can take a decidedly ugly turn.
When employing a restructuring communication plan, it’s better to focus on the fiscal health of your company and not the outsourcing. Transparency, yes, but about what leads up to a company’s need to restructure, not celebrating the benefits of doing so.