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Rebuild the aircraft while it's flying

When a company is no longer profitable, is not achieving its objectives, or is experiencing human, financial or operational difficulties, restructuring may be called for.


This process can be broken down into 5 key stages.


Stage 1: The awakening phase


The first stage in restructuring a company in difficulty is the awareness phase. Here, you need to be sure of the necessity and the stakes of this transformation.


As soon as the first warning signs appear, bring together the company's decision-makers, as well as the heads of the main departments, and take stock, as exhaustively and impartially as possible, of the problem encountered: crisis situation, employee disengagement, drop in productivity, cash-flow problems, fall in sales, ineffective sales strategy...


This audit must be carried out with a great deal of objectivity, pragmatism and neutrality. It must cover all aspects of the company: strategic direction, internal structure and organization, operational, human and financial management...


Identify the various dysfunctions and then design a customized restructuring plan. This will identify the objectives to be achieved and the resources available to achieve them.


Given the difficulty of taking a step back from the situation and the problems encountered, it can be very beneficial to call on the services of a transition pilot, an expert in corporate restructuring. At MontréalPacificWorld, our transition pilots have over 25 years' experience in this type of assignment, and are specialized in your sector of activity. They can help you restructure your business, whatever the scale of your financial or operational difficulties.


Stage 2: Announcing the company's restructuring


This second stage of the corporate restructuring project involves communicating the approach to the company's various stakeholders: managers, employees and all external players (customers, suppliers, service providers, partners, etc.).


It's important to anticipate the emotional impact of the changes deployed. Restructuring can lead to more or less radical decisions linked to the turnaround plan: redundancies, relocation, job cuts, liquidation, reclassification, sale, merger-acquisition, closure of subsidiaries or production sites, conciliation proceedings with your creditors, collective proceedings such as receivership.... These transformations completely change the day-to-day life of your teams, which is why it's so important to support your employees through this transition.


To do this, share your action plan for restructuring the company, the reasons for the restructuring, and emphasize the medium- and long-term benefits. Make sure you build and communicate a strong, clear and inspiring vision.


Anticipate the feelings this announcement may provoke: stress, disappointment, panic, disengagement, resistance.


It's essential to give teams the opportunity to express their fears in complete confidence, and to provide them with clear, reassuring answers. Finally, check with each of your managers that all employees have fully understood the ins and outs of this change, and that they feel concerned and reassured.


This is a decisive stage, as the success of the company's restructuring depends to a large extent on the involvement of all employees.


Stage 3: Deconstructing the old model


The deconstruction phase refers to the disintegration of the company's old organizational model. All the old practices, ways of thinking and strategies that you have defined as irrelevant or obsolete must then disappear.


Here again, this stage marks a real split, and can be a major source of stress and loss of bearings. To ease minds and ensure a smooth transition, you'll need to support your teams very closely, on a daily basis.


Stage 4: Rebuilding the company


The deconstruction phase is followed by the rebuilding phase. This is when you implement your new organizational model. You will need to ensure that it is applied at all levels of the organization: leadership, departmental reorganization, management style, operational efficiency.


To ensure the successful implementation of your restructuring, conduct regular performance monitoring, and carefully evaluate the commitment and well-being of your teams.


Accompany your employees through this change, helping them to find their feet and adapt to the new ecosystem.


Step 5: The integration and adjustment phase


The final stage is the gradual integration of the new organizational model.

Restructuring operations are often spread over a long period of time.


They do not end at the precise moment when the new model is implemented, but must instead undergo a long phase of integration and adjustment.


During this period, it may therefore be necessary to deploy certain corrective actions if the results have not lived up to the desired objectives.


A transition manager to steer corporate restructuring


As with any transformation, corporate restructuring is delicate and complex, especially if it is implemented during a crisis, and is often the subject of difficult and weighty decisions.


However, the lack of discernment and emotional involvement on the part of the company director can represent a real obstacle to the implementation of restructuring.


The surest way to save your company and maintain its competitiveness in the marketplace is therefore to call on the expertise of a transition manager, the only professional qualified to lead such an approach in the most complex environments with companies in difficulty.

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