Organizational Restructuring- what to implement?

"Advocates of specific theories are often limited by their narrow perspective and the expensive training they have undergone. They claim that their approach is the best and protects the company from a crisis or is a remedy for it. However, the true factors of success are the comprehensiveness of the tools and methods (linking different areas within the company) and their effective implementation through employee engagement and managerial consistency. It doesn’t matter what it’s called, but rather its scope and whether people believe in it and are willing to carry it out"

It's important to remember that a company consists of individual elements, creating a specific system, whose connections determine the whole, defining the quality of achieving strategic goals and the overall efficiency of the organization. Relationships between areas of the organization and individual units are the guarantee of efficiency, agility, and flexibility. The efficiency of individual areas becomes less important in the context of the flow of actions as a whole. Looking at the company in this way, we can also conclude that examples of comprehensive organizational restructuring solutions are necessary factors in the healing process, building the company's resilience to crisis.

Whatever approach or methodology you choose is secondary to ensuring they are comprehensive and cover various areas of the organization. The second key factor is genuine employee engagement and the effective implementation of these tools. I have seen many cases of expensive training, top-tier specialists, or programs costing hundreds of thousands. All solutions ended in failure. It seemed like the investment made sense and had many supporters on a declarative level. In practice, the results were questionable, which translated into continuing to operate as before, without making real changes.

The benefits of applying selected management approaches that may convince you to try to implement them in the company are strongly related to changes in areas such as strategy, employees, finance, structure, and technology, where crisis factors arise:

In the area of strategy, restructuring tools like the Balanced Scorecard support management based on measurable goals and indicators, eliminating uncertainties related to the company's objectives. By continuously modernizing and adapting the strategy to the environment, the company can better respond to changes, thus reducing the risk of internal crisis factors such as incorrect or vague company goals, rigid adherence to tried-and-tested success recipes, wrongly assumed competencies, strategy misalignment, or inability to modernize and adapt.

In the area of employees, restructuring tools such as TQM or reengineering, by focusing on the customer, directly influence building modern goals, maintaining flat organizational structures, and decentralizing power. Employee engagement in the goal-setting process increases their identification with the company, strengthening their sense of belonging, entrepreneurship, and motivation. The Balanced Scorecard applied in the employee area uses metrics for achieving HR goals, such as measuring satisfaction, turnover, and employee productivity, thus impacting internal crisis factors such as misjudging employee capabilities, indecisiveness in management and decision-making, lack of employee identification with the company, or internal conflicts.

Implementing or strengthening the role of controlling can significantly improve the financial situation of the enterprise through systematic monitoring and analysis of its activities. By effectively managing the budget and identifying budgeting errors, controlling enables the reduction of inefficient expenditures or costs, preventing incorrect investment decisions. Using the Balanced Scorecard can be an important tool in supplementing controlling activities. By setting transparent strategic goals and defining key indicators, the enterprise can effectively monitor progress in implementing the developed strategy. This allows management to quickly respond to undesirable phenomena, such as exceeding financial capabilities or incorrect investments, and take appropriate corrective actions. Consequently, using the Balanced Scorecard complements controlling activities, enabling more effective financial management and achieving Turnaround goals.

In the area of structure, restructuring tools introduce changes in the organizational model, transitioning from mechanistic to organic, which improves management efficiency and reduces the likelihood of crisis resulting from centralization of power.

In the area of technology, restructuring tools such as TQM or reengineering focus on flexible adaptation to market demands through continuous technological improvement and maximum utilization of available resources. Emphasizing continuous quality reduces the likelihood of phenomena related to low-quality material and production base, outdated technology, technical product errors, unused production capacities, or lack of automation.