How to restructure and reorganise your business

Article written for Bytestart by Jonathan Sharp from Business Link Devon and Cornwall

The principal reason for restructuring or reorganising your business is to make sure it is in the best position to achieve its objectives. As a business grows, it will face a number of influencing factors such as new markets, changes in demand, or the need to improve working practices and processes internally.

Being aware of how to plan and communicate changes to your business structure means that should the opportunity or necessity arise, you will be in the position to guide your business through the process as effectively as possible.

The importance of planning and communication

Planning and communication are critical for any reorganisation and restructure. Getting top management involved in planning and executing any major changes can improve your chances of success.

Thinking ahead

Remember to plan well ahead, assessing any risks, and setting flexible priorities and changing them with your circumstances. Also, consider developing a vision of how the change will put the business in a better position to help you direct your plans and ideas and provide a basis for communication with the rest of the team.

Spreading the word

Research shows that reorganisations that involve the employees are more successful than those that exclude them. Sustained communication is particularly vital. Regular meetings with managers and employees should be schedules to explain why the business is changing and how it will affect them. One of the most difficult aspects of organisational change is getting employees committed to the changes you are planning.

Know the rules

Be aware that you may need to take account of the Information and Consultation of Employees (ICE) Regulations. These came into force in April 2005 and initially apply only to businesses with 150 or more employees. From April 2008, they will affect all businesses with 50 or more employees. Under these regulations, employees have a statutory right to be informed and consulted about anything which affects their employment, or which involves a substantial change to work organisation.

Implementation advice

Consider these top tips when implementing your organisational changes to ensure the effectiveness of your changes and minimise the disruption to your business:

• Adopt the new working practices that you expect from your staff
• Ensure managers keep their teams focused during restructuring
• Build a change programme team to take over some of the responsibilities
• Provide adequate resources for ensuring cultural change
• Set goals based on appropriate targets that are achievable
• Take accurate account of up-front and ongoing cost of planned changes
• Consider incentives to retain key employees
• Be flexible and ready to incorporate any unexpected changes
• Look into recognised systems for managing change and its implementation

The Business Link Service is delivered through advisors in your local area, supported by a national website, www.businesslink.gov.uk containing useful information and practical help, and a national phone line 0845 600 9 006.

www.businesslink.gov.uk offers a wide range of interactive tools and resources to help develop a checklist of things you need to do when reorganising your business. The website also offers online guides and case study to help you through your business issues.