Restructure

Why?

I mean why do it? Why go through the pain of restructuring your business?

Well, for one of two reasons usually. Because things have changed externally and your business structure is no longer fit for purpose or things have changed internally and, well, your business is no longer fit for purpose.

In both cases, restructure is an imperative to make sure income is increased, maintained or protected.

The problem is in EB businesses tend to grow organically, with not many workers and when it’s time to restructure the business owner forgets that he or she is a rational business person and they go all sentimental.

Case in point… a company I’m working with in Welsh Wales.

The guy who runs the business realises he needs to make changes to ensure he continues to grow; so a restructure probably is the right way to go. It will mean that his business has the right people in the right place to fulfil the functions he needs them to fulfil.

Or it would have if he wasn’t being a numpty.

You see, when a business restructures, especially a small one, the owner really should start with a blank sheet of paper. The idea is to draw the ideal structure, the structure that will enable the business to create, deliver and service its customers, depending on what it does.

Only after this thought process has been completed can (potential) names be put in against the new roles that are to be undertaken.

So, if someone can do (or has the ability to do with some development) a particular role, their name goes against the job. If they don’t, they don’t.

If you see what I mean.

My Welsh business boss, though, was doing in a slightly different way… and in a way that, I suspect most EB businesses do it.

He was looking at the names first and trying to work out what jobs they could do.

There’s only one word for this, that I can think of: Re-hash.

Or maybe cop-out.

(I think the hyphen turns it into one word.)

All that’s happening is that the business, which needs a restructure, is getting changed to cover up the shortcomings of the staff… creating ‘work arounds’ to disguise issues. I suspect that all that will happen is that the business will start to look like a Tom and Jerry cartoon. The cat gets hit on the head (usually with an iron or a frying pan) and an enormous bump comes up. He pushes it down and a bump comes up somewhere else.

If you are going to do a restructure, for heaven’s sake, buy yourself a big piece of blank paper… and start from there!

1 comment for “Restructure

  1. 10 May, 2011 at 08:04

    Hey friend can i publish some paragraph of your article on my little blog of university.I have to publish a good articles out there and i really think your post Fits best into it.I will be grateful to give you an source link as well.I have two blogs one my own and the other which is my college blog.I will publish some part in the university blog.Hope you do not mind.

Please leave a comment - we all like them