9 Warning signs that restructuring is needed
When business processes should be changed
Assessing a company and finding out whether and which restructuring measures are necessary is not only a demanding task, but also an ongoing task for top managers in companies.
This does not mean that existing processes should be compulsively overthrown at short intervals. Only the constant and critical questioning of whether one is still competitive with the products, services and the associated business processes can ensure long-term survival.
Here are a few warning signs that may indicate that your company needs restructuring:
- Looking at numbers first and foremost
If turnover and earnings develop negatively over a longer period of time, an entrepreneur must actively take countermeasures.
- Keeping an eye on sick leave
If the sickness rate is not only seasonally high or is increasing, this can be a signal of employee dissatisfaction.
- Listen to your employees
If employees feel badly or insufficiently informed, something is wrong. Or are the business processes not right? Most of the time, employees have the right answers long before you do.
- Try to feel the working atmosphere
Is there also laughter in the corridors? Can you also sit together with colleagues and employees in a relaxed atmosphere?
- How high is the fluctuation?
More importantly, are you losing more and more often the employees you should keep in the company?
- What is the situation with the employees’ time accounts?
Have camps already formed? Employees with horrendous overtime vs. employees with exact hours or minus hours.
- How is your complaint rate?
Have you seen an increase in warranty costs? Has the complaint rate increased?
- The signs on the wall
Who doesn’t know them, the beautiful posters and framed guiding principles in companies. However, if they are only decoration, it is important to check whether the culture described is also lived.
- Afraid of the truth?
If employees or managers have to be afraid to deliver bad news for fear of being discredited, then a manager does not have to be surprised if the company gets sideways.
Certainly, there are still some things missing from my list, but in my many years of work in restructuring companies and optimising business processes, it was these things that stood out. Perhaps it will serve as a stimulus for you to think about and change.