There is so much talk of new year resolutions right now, goals for 2023 and everyone I know seems to be on some sort of health kick. We are all concerned about how lean we need to be personally in 2023, but how many business owners are considering how lean their business should be?
As business owners I think we can all agree that we anticipate 2023 to be a tough year, due to the economic climate, the energy crisis and the fallout from Brexit and Covid. I hate not having control over a situation and facing the unknown, but there are so many areas of business that we can take control of and save money, without necessarily this impacting on service delivery.
My advice to clients has been to ensure that their business is running as efficient and productive as it possibly can. Many business owners are considering restructuring their business, to cut costs by streamlining processes or downsizing parts of the company. Without proper planning and attention to detail, a restructure may be problematic, so here are some areas to consider;
Employee’s skillset vs Vision for Business
A business needs to be very clear on their competitive position and vision for the future. There then needs to be an analysis of the current employee’s strengths and weaknesses. This needs to include skills, competencies etc and then mapped against the plans for the future. It is important to identify if you have the right players on the pitch if you want to win the game.
Job Roles/Job Descriptions
Do the job roles/descriptions match what you are trying to achieve as a business? There have been so many changes to businesses over recent years and often job roles have not evolved accordingly. Do you need that role anymore? Is the job holder at full capacity or could the role be absorbed by other people or removed through improvements in technology? Evaluating current job design against the proposed new one is an important step, as it allows you to streamline your workflows and ensure that every role is adding maximum value.
The above task will determine what changes need to be made to your organisational structure. A re-structure is not necessarily downsizing your business, it can be a re-allocation of resource, changes in team structures…. It is essential that your organisational structure is aligned to your company mission/vision and business strategy.
During the restructuring process you are likely to discover some skills that you do not yet have in the company and some roles and skills that sadly you no longer need. You therefore may need to consider at this point recruitment needs and indeed redundancy plans. I would always advise that you follow a stringent redundancy process and if you don’t have the expertise in house to manage this process, then you seek advice from a HR expert.
Communication and re-engagement
Restructuring your business can be challenging for you and your business, but also unsettling for your team. In the current climate, employees are particularly sensitive to the security of their role. It is really important that your communication throughout the process is very good. In addition, there can often be some fall out from employees that you don’t want to lose in the process if you are not careful. An engagement strategy alongside the change is important.
If you are planning a re-structure/making redundancies and would like some advice and support, please contact one of my team at email@example.com or by calling 03301071037