Companies evolve over time, growing from the founder's vision, hard work, and commitment of time, resources, and capital. There comes a time in company life cycle, where restructuring is necessary. Early on, the founder will have made these changes himself. As his company grows, he may encounter difficulty in managing the changes without some help. Gard Business Coaching has extensive experience in assisting founder-based companies with corporate restructuring.
Phases of a Corporate Restructure
When a business model can no longer grow the company, or when the model is slowly suffocating the company, restructuring is necessary. Change, even when it is for the better, can be difficult. In many cases, some, or all of the existing management team must be replaced. The first step in the turn-around, is determining what members of the management team have both the core operational competency as well as the willingness to embrace a new way of operating the company.
The financial system is the truth of your business. From the sales funnel to the order and fulfillment, all systems must transmit financial data in the correct detail to properly analyze the profitability of business units and product lines. The first order of business is getting to the financial truth about your business through better accounting practices.
Process flows develop over time and in response to business opportunities or problems. A step-by-step documentation of existing process flows will identify bottlenecks, unnecessary steps, weaknesses in the supply chain, etc., This information is used to streamline all important process flows.
The last part of the assessment is analyzing the capabilities of physical and human resources. This work will reveal gaps, overlaps, redundancies, in your human resources.
Cash is the lifeblood of your business. Restructuring can be a long process, and so emergency cash conserving measures are a necessity of any restructuring plan, and must be instituted as early as possible in the project.
The restructuring plan is created from the inputs of the first three phases (change management, assessment, emergency management). The restructuring plan is a months long road map back to business health and profitability.
After the restructuring plan has been completed, the business returns to regular order. Day to day operations occur without surprises. Financial results are within desired parameters. Future planning is done with confidence.