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# 1
Restructuring Your Business
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RESTRUCTURING YOUR BUSINESS
THE YEAR THAT WAS AND THE YEAR AHEAD
Depending on who you speak to, the impact of the global financial crisis (GFC) on Australian businesses has either set off one massive earthquake to the local economy or we are simply feeling the ripple effects of a global catastrophe.
Although the financial services sector such as the major banks have escaped relatively unharmed, our manufacturing industry with majority exports to the US and Europe unfortunately weren't so lucky. These included:
- Car manufacturers such as Holden reducing production and wages by 25%;
- Kleenmadide closed its doors in April 09 owning millions to customers/employees;
- ABC Learning centres shed 450 jobs due to investments in US subprime mortgage markets;
- Pacific Brands shed 1850 jobs opting for cheaper production from China.
Another industry sector hard hit by the financial market melt down is the recruitment industry with operating profits virtually wiped out in the June quarter, some by 97% to marginally break-even point. As a result, turnover for the industry has passed the 60% mark as major recruiters frantically try to reinvent themselves. Feeling the crunch include Adecco, Skilled, Kelly Services, Hudson, Manpower, Robert Walters, Talent2 and major search firms such as Heidrick & Struggles.
Despite the lucrative $50 billion Gorgon gas deal (between Exxon Mobile and PetroChina), estimated to create thousands of jobs and huge economic and local (WA) opportunities through goods and services, the Australian unemployment rate is set to rise to 9% by second quarter 2011 - an increase from 50,000 full-time jobs (April 09) to 1 million full-time jobs.
Regardless of what industry you are in, we would be kidding ourselves to think we won't be affected. If you haven't considered or reviewed your organisations function structures and jobs in light of these very real challenges now is the time to start. However choosing the right organisation structure to address such complex changes to the environment is a challenge in itself. The GFC has led to many changes in the structure of organisations.
Some key starting points to consider would be:
- Understand your operating environment (internal and external.
- Review your corporate strategy and business unit plans.
- Review existing corporate structure and design a new functional organisational structure which aligns to the overall business plan.
- Address various long term performance issues across technical and management roles.
- Identify significant deficiencies in processes; doubling up of functions and perceived levels of staff utilisation across all functions.
- Review leadership capability, performance management and development frameworks.
- Design and implement human resources programmes and initiatives that build organisational capability aligned with strategic priorities.
- Provide support and guidance to manage the people aspects of change initiatives and provide where necessary project management expertise and methods to manage change.
- Influence others to embrace the benefits of change to organisational culture and structure
Enable managers to best manage their teams to achieve organisational objectives by:
- Developing individual performance management and development plans
- Plan, manage and report on people development initiatives from conception to completion, monitoring progress against plans and evaluating outcomes.
- Facilitate the development of staff and management by:
- Coaching managers on best practice performance management,
- Making use of appropriate performance development tools as a basis for development,
- Providing advice and support to managers preparing performance plans for staff to support organisational goals, individual career planning and succession planning.
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