How to make restructuring transparent, fair and plannable
Restructuring often only comes into play when a company is in difficulties. Declining sales, changing market conditions or internal structures that have reached their limits are classic triggers.
But restructuring is far more than just an emergency plan. Used correctly, it is a strategic instrumentto make companies future-proof for the future. And with foresight – even before external circumstances force action. Those who put their own processes, structures and finances to the test at an early stage not only gain claritybut also valuable room for maneuver.
We define restructuring as all measures that strengthen or restore a company’s potential for success. The aim is to secure performance and competitiveness in the long term – and to make the company fit for future challenges.
What exactly a restructuring looks like always depends on your company and the problem situation. Sometimes it requires a realignment of the
A restructuring process does not necessarily have to lead to downsizing but it can. For those affected, this means existential changes. For managers, these are perhaps the most difficult conversations of their careers. And for HR, it is a balancing act between economic and legal requirements and responsibility for people.
HR is at the center of the action in a restructuring with staff reductions – and at the same time under great pressure. Many HR departments (fortunately) have hardly any experience with such processes and are not at all prepared for the emotionally and legally complex procedures involved in a staff reduction.
Maybe you feel the same way and are wondering: What’s the best way to proceed? How do you make the separation process as fair and respectful as possible – for everyone involved? How do you trustmotivation and an appreciative culture among the remaining employees?
We can’t take the responsibility off your shoulders – but as an experienced sparring partner at your side: Enable your HR department and managers to manage the restructuring process competently, empathetically and responsibly!
Restructuring always makes sense when existing structures and processes or the personnel structure no longer meet the requirements. But how do you actually notice this?
In order to recognize a need for action in good time, you should take an honest look at your company. And these questions can help you do so.
Finances:
o Are sales or profits declining over a longer period of time?
o Is liquidity permanently strained?
o Are planned budgets regularly exceeded?
Structures & processes:
o Are decision paths too long or responsibilities unclear?
o Are there duplicate structures or inefficient processes?
o Does it take too long for new ideas or products to be implemented?
Market & competition:
o Have customer needs changed?
o Are new competitors entering the market?
o Are innovations lacking to keep pace?
Employees:
o Is there high fluctuation or dissatisfaction in the team?
o Are resources often overloaded or misused?
Have you answered “yes” to several of these questions? Then it’s time to readjust.
Restructuring is a challenging time for everyone involved – full of uncertainty, strong emotions and many questions. Perhaps you are a manager, HR manager or managing director and want to do everything right? But would you like support in matters of…
Sometimes a neutral view from the outside helps. Someone who asks the right questions, orientation and security can provide guidance and security.
Regardless of whether you are in the middle of a crisis or simply want to check whether the course is still right: It’s never too early to stop and take a look. We are happy to help you do this – with professional expertiseyears of experience and a lot of sensitivity!
accompanies you in a sustainable organizational design and organizational development at all levels.
o Analysis of economic risks and opportunities (e.g. loss of market share, decline in sales, liquidity bottlenecks)
o Development of future scenarios and options for action (e.g. based on 5-year plans)
o Derivation of necessary measures including calculation of the financial impact – at organizational level (e.g. merging functions) and process level (e.g. digitalization, automation)
o Recording and visualization of the current structures (e.g. holistic organizational charts)
o Identification of duplicate structures, gaps and inefficiencies (especially in connection with M&A activities such as mergers or carve-outs)
o Analysis of hierarchy levels and management spans (e.g. imbalances within the organization, benchmarking)
o Analysis of the strategic framework conditions and any changes (e.g. market, customers, competition, strategy)
o Development and evaluation of possible target images for future-oriented structures (e.g. advantages and disadvantages of matrix structures)
o Coordination of potential target images with all relevant stakeholders (e.g. Supervisory Board, employee representatives) and selection of the prioritized target image
o Design and detailing of the selected target image (e.g. detailed organizational charts, roles and responsibilities)
o Creation and coordination of an implementation roadmap (incl. clear milestones and responsibilities)
o Establishment of governance for the implementation (e.g. establishment of a Project Management Office (PMO))
o Overall management through regular and KPI-based reporting and progress controlling
o Integrated change management and professional communication to involve managers and employees and increase acceptance
supports you in strategic & operative personnel management, in the modernization of your personnel work & in the separation process!
o Analysis & conception: We work with you to develop a tailor-made restructuring strategy – within the framework of the legal and works constitution requirements.
o Time & process planning: A detailed project plan gives you orientation for all steps – from decision-making to implementation.
o Stakeholder analysis: Who is affected, who wants to be involved, who needs what? Together, we identify all relevant internal and external parties and their needs.
o Social plans: We advise you on the design of fair compensation models and support offers.
o Communication strategy: Together we develop a holistic communication strategy that includes all target groups (those affected, those remaining, the works council, the public).
o Preparation of communication materials: Whether it’s an internal announcement or an external press release – we can advise you on how to create transparent and empathetic messages.
o Mediation & cooperation: To ensure that your negotiations with the works council are constructive and solution-oriented, we prepare the management, HR and lawyers specifically for these talks.
o Training & coaching: In workshops and individual coaching sessions, we help managers to prepare for the emotionally and communicatively challenging separation talks.
o Dealing with difficult situations: You will learn techniques for dealing with emotional reactions, resistance and legal issues during the interview.
o Practical exercises: In role plays and simulations, we practise conducting conversations under realistic conditions – so you gain confidence in the event of an emergency.