For business recovery, you need fire fighters kind of profile and sharp transition experts. Thinking Series 2
This is a continuing article from my previous article, related to business undergoing recession and need to recover from recession within a year.
Your organization need Sharp Transition Experts for business recovery, disaster management and save the resources in short time. How to find right talent within your organization? Is your leadership team ready to be firefighters? Team should deal with operations separately from strategy. How to find resources who will plan, directs and act? Not advisory alone.
Some sample steps what he or she will do :
Assess the business environment, internal and external Assess the current key metrics with key goals Prepare recovery plan based on milestones Asses the job skills, job profile, and required competence to make recovery Asses the ability of resources and ensure their recovery Effectively align essential organizational skills with strategic challenges Set up a process to safeguard the customer, partners, suppliers, support systems, and disseminate right communications. Have a day to day or weekly - performance dashboard with milestone and timelines
Be ready for re-organization people restructuring:
A business can be restructured to reduce costs or specialize or focus the economic activity in a specific area, or other plans. Restructuring reorganizes the economic and financial structure of a company. When to restructure a company in difficulty, depends on the business pulse, especially the revenue and cash flow? How do you go about making everything go smoothly?
It is a difficult decision to make, but you have to think about it and prepare for it because it is sometimes essential to save the business. Be ready for re-organization people restructuring. Transition managers must think through and prepare for it because it is ressential to save the business, by taking rational decisions
What skills are required for recovery manager or team?
‘Excellence’ in leadership skills and decision making to recover and back to the growth path. Acceptability of risk, risk assessment, set up the incident goal, execute with minimum casualty and attain incident goals. Above all, there is a timer running.
Recovery manger –
Here Excellence = Motivation + Communication + People skills + Teamwork. If one of these elements is zero, then the conditions for excellence disappear.
Operational expertise: Along with excellent listening skills, the presence being in the domain or the industry is a must. The manager must be as close as possible to the key operational teams. This is important as organizations become broader and wider. However, every employee must feel that he can easily address his to manager to express difficulty or submit an area for improvement.
Exemplary teamwork: Ability to allow all, motivate to think and to make people believe – even encourage the employee to leave their comfort zone – are also essential skills. The challenge is to instill the conditions of mutual trust.
Behavioral skills: The recovery manager must be in a position of success promoter to recover, more than a problem solver. To encourage this dynamic leadership, companies must have assessed behavioral skills and then, on this basis, identify the right managers for recovery for growth.
Lean Thinking: Applying Lean principles with an objective of recovery is supportive. That is by consuming the minimum of resources, creating value at all levels of the production chain, aiming for optimum customer satisfaction and limiting waste. During the recovery period, this method takes into account the business operating errors and put the right measures to improve continuously. Based on quantifiable performance indicators, the employee is given real autonomy. For example, Decide to stop a process immediately when an error is detected to correct it on the spot. With a well-defined hierarchy and by streamlining processes, costs can be optimized.
A fire fighter to put off incident action plan
Prepare your restructuring well
The primary purpose of restructuring is to adapt a company to the demands of the current market, to new constraints. It is therefore important to establish an action plan, as well as a follow-up to assess the progress and the good progress of the restructuring.
It is necessary to have general goals and specific operational objectives for restructuring. It is critical to connect with all the functions and business processes. It is vital to keep employees with the necessary skills and being able to adapt to the future mode of operation.
Besides, the transition manager must have a long-term vision and put in place a clear strategy to best prepare the company for future developments. The forecast balance sheet and business plan are real elements on which to base ourselves. Difficult to live, the period before a restructuring can also reserve development opportunities for the well-prepared and reactive employee. The moments preceding a redesign are always difficult to live in the company: some times, communications are exaggerated, unexpected rumours and employees are often disoriented. However, restructuring, by redistributing the driving forces of the company, also offers great opportunities for development. You still have to know how to grasp them! Here are four anticipation exercises to better pass the course
5-phase model of the re-structuring process
1.The awakening phase:
The awakening phase is an awareness of the imbalance between the business environment and the organization and the need for change. The company is, therefore, preparing for the change and the coming disintegration process.
2. The announcement or communication:
The announcement is the starting point for the change process. It can be perceived by employees as unexpected and violent and generate strong emotions. Methods are similar to the mourning process. level of buy-in Vs resistance to change. This is why the communication on restructuring is a crucial factor.
3. The disintegration phase
The disintegration phase is the process where organization destroys old methods to make way for its new form. The old marks disappear, and the new ones are not yet visible. Individuals may feel lost, and there are symptoms of anxiety and stress. This phase ends when the old organization is no longer in place. New Business Profile in place with best fit for recovery
4.The reconstruction phase
The construction phase is the phase where changes are made within the organization. Profiling of recovery job and profiling of people: Employees are gradually taking their place in the new profile / team or organization. Depending on how the change is made and depending on the people, we see two employee profiles appear:
○ Those who have confidence in the future organization see the symptoms of anxiety and stress disappear
○ Those who do not trust the future organization see symptoms of depression such as loss of sense, purpose and interest in work.
5. The integration phase
The integration phase appears once the new organization plan is in place. It perpetuates change and consolidates the actions taken in the previous phase. The profiles of employees are seen to increase: the symptoms of anxiety and stress disappear among people who have confidence in the new organization, and the symptoms of depression become worse among employees who do not have this confidence.
to be continued – with ‘Recession proofing organizations’