Restructuring a company is often a necessary part of running a successful business. Business owners restructure for a variety of reasons: preparing for a sale, merger or acquisition, to create greater efficiency or to become more competitive, for example. One of the first steps in the restructuring process involves identifying the company’s shortcomings and creating plans to correct those weaknesses – are you one of them?
How do you restructure your business when one of those shortcomings is you, the business owner? Whether you realize it or not, you may be the stumbling block to a successful company restructuring. Here are three ways business owners are getting in their own way when it comes to restructuring a company:
You’ve Out-Done Yourself
Some business owners grow their company so much that they are no longer able to manage it efficiently. Although they still try to handle everything like they did when the company was smaller, their efforts only result in the tendency to micromanage. A reluctance to realign your span of control and delegate different aspects of the business to others not only sabotages a successful company restructuring, but it also means that you’re spending your valuable time on routine functions rather than focusing on strategic considerations like growing your business.
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You’re a Dinosaur
Other business owners have difficulty shifting their mindset to make the changes needed for a successful company restructuring. Retaining old procedures that no longer work (following the “that’s the way we’ve always done it” pattern) can result in dire consequences for a corporate restructuring. If you’re a follower rather than a leader when it comes to embracing new technology and procedures, or your products or services lag behind your competitors, you may have a dinosaur mentality that leaves you unable to adapt and meet the rapidly changing needs of your company.
You Haven’t Explained Yourself
A third way business owners get in their own way when it comes to a successful restructure is by failing to communicate. CEOs often are too caught up in running their business that they don’t take the time to fully explain the need for a corporate restructure. Employees who don’t understand the “why” of company restructuring won’t buy into it and may feel like the restructuring is simply activity for activity’s sake. In addition to your employees, the communication must extend to suppliers, vendors and shareholders.
If you’re interested in restructuring a company and have a sound restructuring plan that isn’t working, it may be time to take an honest assessment of your management style. Sometimes the solution to a successful company restructuring can be found by looking in the mirror. Acknowledging that you’re the problem can be painful, but it is often the crucial step in successfully restructuring a company.
Corporate Restructuring Services
Links Financial offers corporate restructuring services for growing and mid-size businesses. By utilizing our corporate restructuring services, business owners gain a complete, independent evaluation of their company and a clear strategy for success. With our in-depth knowledge and experience, we can help you successfully navigate the challenges of restructuring your company.