From inception to maturity, every company throughout its lifecycle asks to restructure the existing systems, processes and workforce as well; it’s inevitable. Organisations quick in identifying the right time to reorganise along with the growth trajectory are the ones to survive longer. Good leaders and visionaries understand when to take appropriate transformation measures. Here’re a few situations that seriously ask considering a change in usual plans!
- No more profit growth
Almost every business grows when clearly defined strategies are practised but if there’s a gradual shrink in profit margin over an extended period, this is serious! This is the time to audit cost of goods sold, cash flows, salaries and revenue ratios. Maybe a few or all these factors are dropping the net operating income so examine the finance journals regularly to avoid unpleasant surprises.
- High turnover
Both client and employee turnover falls in the category and needs a closer watch. If your customers start leaving and all your retaining strategies have failed so far, it means they aren’t satisfied with your services and would probably go for miscellaneous providers.
Here, many internal and external factors play a crucial role here that ask you to establish a sound and healthy relationship with customers and seek innovative ways to ensure quality as well as lasting association.
Similarly, if your team members are eventually coming and going, strategies needs to be changed straight away. There can be various reasons such as morale issues, more competitive compensation at other firms or unaddressed requests at management’s end.
But now that you finally see a pattern, be sure paying attention to the feedback and have a comprehensive, well-defined exit interview procedure. Remember, a disgruntled employee is far contagious and is likely to poison other workers if his issue remains unconsidered.
- Lower morale
Countless issues exist in different organisations that fuel pessimistic morality. Some of the major causes are poor management, ignorance to creative and constructive feedback, broken promises, an environment that promotes favouritism and so on.
By the time management realises the need for drastic change, it’s already too late so all such issues must be considered beforehand. The administration should thus ensure they listen to the fellow members and take necessary steps for the betterment of overall organisational infrastructure.
- Old becomes obsolete
The usual strategies that work with a staff of ten are ought to fail when this count reaches 50. It isn’t that system must be robotic or entirely complex as the company grows but quite the opposite. As a company grows, existing strategies must be redefined accordingly as long as they correspond to the company vision and mission.
- Rampant inefficiencies
When a company has finally outgrown the processes that once worked, it becomes inefficient. An example can be of gradual increase of workforce in an organisation means a higher payroll and decreased profits. Efficient companies, however, keep on growing thus adds more business to the industry and apparently hire more staff. Most of the time, it can be as simple as improving the system or implement a new software to keep the process streamlined, however, inefficiencies if left unaddressed would slump a company.
- Overstressed teams
If employees are bombed with tasks and given strict deadlines to accomplish them, inaccuracies and delays are likely to occur that’s another sign of poor management and inefficient standards. An old saying goes; don’t work hard, work smart, so whatever the issue, have it fixed or it can eventually lead to negative morale.
Conclusion
When out to establish a business; be it in a slow or highly competitive market, be sure to come up with a restructure plan lest the existing one fails.
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Incredible! This blog looks exactly like my old one! It’s on a
entirely different subject but it has pretty much the same layout and design. Excellent choice of colors!
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