How can you avoid common restructuring risks?

1 Define your objectives and criteria

Before you start any restructuring initiative, you need to have a clear vision of why you are doing it, what you want to achieve, and how you will measure success. This will help you align your strategy with your business goals, values, and mission, as well as communicate them to your stakeholders. You also need to establish some criteria for making decisions, such as financial performance, market position, customer satisfaction, and employee engagement. These criteria will help you evaluate your current situation, identify gaps and opportunities, and prioritize actions.

2 Choose an appropriate framework and tool

Depending on the scope, scale, and nature of your restructuring, you may need to use different frameworks and tools to guide your process and support your implementation. For example, you may use a SWOT analysis to assess your strengths, weaknesses, opportunities, and threats, or a McKinsey 7S model to analyze your organizational structure, strategy, systems, skills, style, staff, and shared values. You may also use a project management tool, such as Asana or Trello, to track your tasks, deadlines, and progress, or a change management tool, such as Kotter's 8-step model or ADKAR model, to manage the human side of change.

3 Involve and consult key stakeholders

One of the most critical aspects of restructuring is to involve and consult your key stakeholders, such as employees, customers, suppliers, partners, investors, regulators, and media. By doing so, you can gain their input, feedback, support, and buy-in, as well as avoid potential conflicts, misunderstandings, and resistance. You can also use various methods and channels to engage and consult your stakeholders, such as surveys, interviews, focus groups, workshops, webinars, newsletters, emails, and social media.

4 Communicate clearly and frequently

Another essential aspect of restructuring is to communicate clearly and frequently with your internal and external audiences. You need to explain the rationale, objectives, benefits, and impacts of your restructuring, as well as the timeline, milestones, and expectations. You also need to address any questions, concerns, or rumors that may arise, and provide regular updates and feedback. By doing so, you can build trust, transparency, and credibility, as well as reduce anxiety, confusion, and speculation.

5 Monitor and evaluate the outcomes

Once you have implemented your restructuring plan, you need to monitor and evaluate the outcomes and impacts of your actions. You need to collect and analyze data, such as financial reports, customer feedback, employee satisfaction, and market share, to see if you have achieved your objectives and criteria. You also need to identify any gaps, issues, or risks that may emerge, and take corrective or preventive measures accordingly. Moreover, you need to celebrate and recognize your achievements and successes, as well as learn from your challenges and failures.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?