Why Do Companies Restructure? Consultants Reveal 3 Keys to a Successful Turnaround
Let’s be honest:
Restructuring. Turnaround. Experts.
These are the kinds of euphemistic words corporate leaders use to put a good spin on a bad situation. When employees hear words while restructuring consulting firms or turnaround consultant, what they really hear is layoffs, unemployment, and anxiety.
And that means that most restructuring consulting firms aren’t doing their jobs right in the first place.
When done correctly, the best restructuring consultants not only help a company reorganize in a time of crisis, they help employees keep their heads above water during a difficult transition.
Adapt or Die Restructure or Die
Why do companies restructure? Globalization isn’t going anywhere. And even though the U.S. economy has stabilized in recent years, companies of all sizes have to adapt to the new reality. Your competitors aren’t just across town, or on the other side of the country, they’re on the other side of the world, where they can hire workers for a fraction of what it costs you.
When companies need to adapt in a time of crisis, they turn to restructuring consulting firms. There’s no one size fits all approach, but there are some common denominators in any successful reorganization. So how can you help your company turnaround without destroying morale in the process?
While some restructuring consulting firms do the bare minimum, our firm will do everything in our power to reduce stress, help employees, and minimize damage to the company.
What does that mean in practical terms?
When you have no choice but to reduce your workforce, you have two choices. Some employers choose to take the cold, dispassionate approach. They tell themselves, “This is the way the world works. Life isn’t fair, and this isn’t my fault.” That leaves laid off employees out in the cold, and can destroy morale among the workers who remain.
Or, you can choose to approach restructuring from a place of compassion, trying your best to help your team through the transition. That’s where restructuring consulting firms come into the picture. With the right outplacement services, career counseling, and communication, former employees can make it through this difficult time.
Even in the best of times, the most successful companies struggle with staffing, talent acquisition, and employee retention. But after a painful restructure, those problems can become fatal.
Human resource studies have found that 47% of organizations cite employee retention as a major problem. And in a survey of small to medium sized businesses by Vistage, 35% of CEOs said staffing is the number one issue they face.
When you need to turnaround your company, consider restructuring consulting firms as a bridge, giving your team the support and structure you need to get to the other side safely.
Frederickson Partners is one of the top-rated HR Executive Search firms, with expertise in placing Chief People Officers (CPOs), Chief Human Resources Officers (CHROs), Human Resources Business Partners (HRBPs), Chief Diversity Officers (CDOs) and other HR leaders. We have access to the broadest network of People and HR executives in the world, and a 25-year reputation as a human resources talent search firm and HR Advisory provider.