A plan for administrative restructuring and corporate reorganization, taking into account the strategic priorities of the company, has as its goals:
- Creating structures that will support decision-making for developing the new business strategy,
- Improving efficiency by analyzing, particular critically, its internal organisation and procedures,
- Adapting the business to date, and
- Ensuring its survival and establishing of success.
The restructuring plan includes, inter alia, the staffing of the management team with experienced executives, the creation of new jobs and new departments to suit the conditions under which now operates the business, the replacement or even removal of the older nonfunctional posts and departments, the improvement of product variety or even elimination of the high cost and low efficiency production lines.
A company must carefully consider a variety of options in order to finally adopt the least expensive and most rational solution to its problems. The utilization of an outside consultant’s professional services provides to the financial and general management the ability to objectively assess the whole situation, without expediencies, subjective judgments and silos departmental preferences.
Financial Factor Consulting with its years of experience in successful business restructuring will assess and bring before the board of directors, your company’s current situation and will present a specific plan of reorganising either a specific problematic department or the entire company. The Reorganisation Plan of FFC is divided into four stages:
Stage Α. Current situation assessment
In the first stage of identifying the business environment of your company, FFC specialized executives undertake the collection and evaluation of the company’s position. At the end of the first stage an evaluation report on the results is prepared, which is presented in a clear and simple manner to the Board and the company’s executives.
• Collection of data on the current situation of the company. The data are classified into:
- Products (What we produce, how we produce it, best way, product quality, customer service, need to produce? Development of new products)
- Financial (Balances, Balance Sheets, Product Costing, Clients – Suppliers, Requirements, Turnover, Cash Flows, etc.)
- Organizational (Management and relationship with employees. Good administration, Organisational chart, Decision-making procedure, Information, Job description, Company’s procedures and processes, Training and evaluation of personnel)
- Banking (relationship with Banks, use of Loans)
- Competition (main competitors, benchmarking, what they do best, sector evaluation)
• Evaluation of data and assessment of the business’s real value
- SWOT analysis strengths, weaknesses, opportunities and threats for the company.
- Comparative analysis of a business performance, based on a series of measurable strategic parameters (performance indicators, KPIs), as to others companies that achieve optimum performance in the same parameter series.
- Preparation of a chart of company procedures at all levels and identification of decision level and mode.
- Preparation of a business report and identification of problematic elements in business.
- Understanding of sub-performance data and explanation of results to business operators.
- Evaluation of the company’s overall performance and competitiveness.
Stage Β. Identification of Reorganisation Goals and task Plan preparation
In close cooperation with the consultants of FFC, the board members of the company decide based on the data of the report presented to them what will be the goals of the reorganization and the expected tasks of the changes to be implemented. FFC consultants will show you ways to communicate the changes in the company’s staff, aiming to maximum participation and support of the Reorganization Plan.
• Reorganization goal recording. Management participation.
• Action plan preparation. Targeting priority actions with short-term desired result. Preparing for actions with long-term result.
• Discussion, acceptance and adoption of plan by the operators.
• Presentation of plan to those involved in the reorganization procedure. Communicating management’s vision and objectives. Accepting and addressing rejection and negative comments. Targeting maximum participation.
• Preparing executives and personnel for the change procedure. Focusing on the development dimension of the program, not only on cost reduction.
Stage C. Work Plan Implementation
Next stage involves the design and development of a reliable, workable, flexible, measurable and effective work plan; a highly technical part requiring the cooperation of FFC consultants’ different specialties. The result will be the exact description of the roles of all participants, what is required from each participant and the proper monitoring of the work plan course.
• Creation of a highly detailed Project Plan with precise action timetables. Identification of significant milestones in the project’s progress.
• Appointment of a Project Manager with full control and accountability for project completion.
• Precise work sharing. Who is responsible and for what for each phase of the project.
• Project monitoring procedure on a consistent basis and correcting any deviations from the expected results.
Stage D. Results Evaluation
In the last and most crucial stage we evaluate the reorganisation results based on quantitative and qualitative data. The results are divided into short- and long-term ones, direct and indirect. FFC will show you the scoreboard with the goals we had set and the benefits we have in the new situation.
• Creation of a credible mechanism of comparing post-project to pre-project situation.
• Recording results, procedures and creation of a database with project experience for future use by the company.
In Financial Factor Consulting we have a rich and successful company restructuring history which guarantees the accuracy of the restructuring plan preparation and the optimal efficiency of its implementation.