Reasons for Failing Restructuring Processes




Restructuring
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N E A Shibly
CEO, Bangladesh

Reasons for Failing Restructuring Processes

There remains a great deal of challenge in connecting all the stakeholders' interests in the restructuring process. Accountability of the OWNERS in making things happen is obvious but they are not always visible. As though the responsibility solely lies with the EMPLOYEES to implement and deliver the result the next day.
Often the CONSULTANTS facilitating the change management are also to shoulder the liability - if no substantial outcomes are visible. Owners' expectation to see the visible outcome remains as a legitimate demand while the question of sharing the traumatic transition is never answered or gets lost in oblivion.

In a number of cases, the structuring process stumbled because of a disconnect between various stakeholders and the organizational process was back to square one. Specifically, following constraining reasons for a failed restructuring process were evidenced:
- New management systems were installed, but the owners kept believing in the ways of doing things as in the past as they thought that brought more result than the yet to be tested newer ways. So, every one else was to go by the new systems but the owners. A serious disconnect which resulted in a status-quo.
- The loyal class of employees who had been there with the owners during the hard days needed to be retained. No matter even if they were no-fits in the new skill sets. They could not be dislodged from their roles. So, the new reporting structure got bypassed by these pockets of islands.
- The beneficiaries of the 'previous process' held the owners as hostage by threatening them with the dire losses if the new systems were implemented. Although this did not get surfaced visibly, these subtle organizational dynamics created strong under currents.
- The tendency was to label the process as 'concepts and theories' which were good to hear but lacked the touch of reality.
- The revenue growth of the organization grew faster than the growth in management competency. Inheritance had been the main criteria rather than the 'best-fit' skills.
What would be the practical ways of handling such disconnects?
 
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Jaap de Jonge
Editor, Netherlands
 

Stakeholder Alignment is First Step Before Restructuring Process

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