It is very likely your business has changed shape in 2020, so to start 2021 we will look at how to get your business fit for purpose and in great shape. Restructuring a business takes time, so we are covering different topics over the next couple of months to support your business transformation process:
- why restructure a business – is my business in the best shape for 2021?
- start a business restructure – where do you want to be?
- business restructure plan – coming up with a plan of action
- body sculpting – trimming the excess weight
Why restructure a business?
How many of you have stood back, looked at your staff levels and said, “where did all these people come from?” Perhaps your business has changed shape over time and without constantly looking in the mirror you have not noticed it getting a spare tyre around the middle. Let us think about how some of these changes might have occurred.
In the beginning you may have had a small, beautiful business. There were no problems with people, everyone worked hard, did a bit of everything, and worked long hours to meet customer demands. The business was stretched, but fit, nimble and hungry.
Then, you had some success, and the business grew. Roles become less fluid and more functionalised. When this happens, we create specialised roles and departments. Often people create roles to suit the things they enjoy doing the most.
The business grew further and therefore more people were employed. Roles and responsibilities become more established. People stuck to their own niche roles. You got departmental silos and people were less likely to help each other out.
So, what does this mean for your business today? More people generate more people. People create more work for themselves and more resources are demanded as a result so, business owners hire more people. The problem is we keep adding more people to the business without re-evaluating the roles already in place. Both the number of jobs and the content of jobs get bigger. This is known as the equivalent of business middle age spread!
Start a business restructure
If we are carrying extra weight it can slow down our business growth and we will start to stagnate. Here are some ways in which you can start to get your business back into fighting shape for the new year:
Organisation chart
In order to create an organisational chart for 2021 you need to think about what you need in these very specific times, what should each role cover. Try not to think about what you have already got, focus on what the business needs to thrive and be successful.
Once you have created an organisation chart for the future, look at what you have in place NOW. First allocate the roles and responsibilities for each role before considering WHO does what. Then compare and contrast the two organisational charts to see where the movement is.
If you are already a breatheHR user, you can use their organisational chart tool. If you are interested in a free trial of this brilliant HR software, we can set you up and also give you a 50% discount for the first quarter of 2021. See the Winter Offer at the end of this article.
Employees – Fit for Purpose
As you draw up the organisation chart you may start to look closer at some of your employees. Some may be your rising stars and some may taking up an extraordinary amount of management time and energy. You need to have strategies for dealing with both types of people.
Rising stars: development and retention strategies e.g., reward structures, new opportunities, personal development, new responsibilities, understand career aspirations, career planning etc.
Further reading: You may enjoy our article about Personal and Career Development.
Energy vampires: individuals who are taking your time and energy and not progressing, whom need their role re-defined or performance managed
You want to recognise, reward, and challenge your high achievers. Likewise, you need to deal promptly with those who are no longer fit for the role. Whatever the issue you need to consider your employees as part of the plan of moving from your current position to your future position.
Business restructure plan
Restructuring a business requires the same principles as when you decide to undertake any challenge:
- you need to decide what you want to achieve
- your timescale
- understand the options
- select the route for getting there
You need a strategy which will consist of a series of stages to move you from your current position to your future one – you need some body sculpting.
Body sculpting
This process is about making small adjustments to your business to make it fitter and leaner. This may involve:
- review and update of job descriptions
- setting KPIs and targets
- performance management which can be anything from the positive elements such as giving clear career direction, feedback, and praise to tackling people whose performance is not up to scratch. This may ultimately lead to termination of employment
- assessment of people with less than two years’ service (including their notice period). It may be possible to move them on without going through a full-blown disciplinary process
- redundancy
- settlement agreements
- outsourcing
- flexible working options
- remuneration packages
Most businesses who are looking to make a significant business restructure will likely consider redundancy. As roles develop (which are no longer relevant), people are inadvertently doing things which do not contribute to the growth of the business. The business has changed or moved on. We will be covering the redundancy process and settlement agreements in more detail in our next articles.
Restructure a business – conclusion
It is always advisable to seek independent and objective advice from a third party outside of the business. Try to ensure you have a plan and a realistic timetable in place. These things take time but if they are carefully planned and managed, you may avoid appeals and Employment Tribunal claims.
Keep talking to people. Keeping the lines of communication open and being transparent is key to minimising disputes and avoidable complications.
If you are interested in finding out how Emphasis HR & Training can help your business grow and develop in 2021, why not contact us about our Business Transformation Programme starting in January: 01794 874232 / hello@emphasis.uk.com
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Winter Offer -50% off
Don’t miss out on our special Winter Offer with Breathe HR – the low cost & intuitive cloud-based HR software ideal for growing businesses. Benefit from 50% off for 2 months after your FREE trial PLUS have another month at – 50% on us. Hurry… offer ends 24 December 2020. Contact a member of the team today on 01794 874232 / hello@emphasis.uk.com for more information.
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