Are there courses on restructuring texts

Restructuring: How to Communicate

The word alone is enough to make employees sweat and nervous twitches. restructuring always sounds like downsizing and comprehensive change, where no stone is left unturned. For executives and managers, restructuring is therefore one of the greatest challenges. The planned adjustments and innovations must be planned and implemented while the team and employees are informed. In addition, you need answers and the right reaction to their uncertainty and many open questions. Correct communication is particularly important for success in order to avoid misunderstandings. We show how different a restructuring can look and how this should be communicated

What does restructuring mean for the company?

A Restructuring in the company could also be described as upheaval, remodeling, redesign or, more pointedly, as a new beginning. First of all, it means that some things will change. According to the definition, a restructuring is a change of direction in the organization in which previous operational procedures, business processes and structures are questioned and redesigned.

The Causes for such a restructuring can be diverse, but almost always have to do with the fact that things in the company are not going as managers, board members and management board imagine. These can be financial difficulties, a growing distance to direct competition, a collapse in the order situation or problems with technical innovations.

Through a restructured organization, those responsible hope for an improvement in the situation and a long-term renovation of the company. For employees, this immediately sounds like an impending wave of layoffs that will cost many jobs. But that is by no means always the case.

In the event of a restructuring, staff can be cut. This is particularly the case in times of financial constraints, but there are other options for restructuring. Production can be divided up differently, departments are merged to Synergy effects to use, stronger quality control is introduced, or new software is rolled out across the company to improve results.

Sometimes that too entire business model adjusted to adapt to new market conditions and to be able to be successful. Restructuring can also affect the product range, so that new ideas are implemented or old, uneconomical products are deleted from the range.

That means for companies countless adjusting screwsthat can be turned during the restructuring in order to achieve the best possible result. On the other hand, this creates great uncertainty for employees.

Communication is the key to restructuring

The uncertainty during a restructuring can hardly be avoided. Employees fear for their jobs, do not know how their work will change in the coming weeks and months and whether the employer may not even have to file for bankruptcy in the end. This uncertainty can cause employees to flee after you new employment relationship look around.

Other employees react with increasing dissatisfaction or do not support the changes, which stalls the success of the restructuring. Around negative effects To prevent and benefit from the restructuring, companies and executives should attach great importance to communication from the start.

Employees who understand why something is happening, what goals are being pursued with it and how exactly the restructuring should take place feel there involved in the process and develop great loyalty to the employer.

An important aspect, because employees are a fundamental success factor of every company - not only when things are going well, but especially in times of crisis. The necessary change of direction can only be achieved with the combined efforts of all those involved. With the right one Communication on the part of the decision-makers the foundation stone can be laid. A great responsibility and not an easy task for managers.

This is what matters when communicating a restructuring

If restructuring is inevitable, employees need to be made aware of what will happen next and what changes are imminent for the company and the employees themselves. A difficult gear for bosses, which can, however, belong to the management position. Before rushing to a large meeting to announce the news, managers should give some thought to how they are going to approach the project.

We have a few Tips and advicethat can help you to properly communicate a restructuring in the company.

  • In any case, be honest.

    The first irrefutable principle: honesty. Don't make promises that you can't keep don't talk nicely, don't overdo, leave out or add anything. That sounds easy and natural, but in practice it can be quite tough.

    Telling your employees to the face that many are losing their jobs or that the next few months will determine the company's future can be tough. But employees deserve this honesty - already from Respect and appreciation, but also to give you the chance to react to the situation.

  • Show sensitivity.

    Honesty doesn't mean bosses shouldn't be cautious. Everyone involved is in a difficult phase, which should also affect communication. Expectations, fears and questions should be taken seriously and answered. Sufficient time should also be planned for communication instead of breaking over the knee and processing all points in ten minutes like a robot.

  • Ask for opinion.

    Restructuring decisions are made at the top of the list, but when communicating these decisions, it is important to ask for the opinion of employees. On the one hand, this shows that you are not simply acting from above, but rather the employees in the whole process and on the other hand can benefit from the views.

    Employees often have a good understanding of the problems of everyday work, know where optimizations are particularly promising and which problems need to be solved. The feedback should therefore not just a symbolic gesture be, but really be heeded.

  • Keep transparency going.

    The greatest possible transparency should be ensured throughout the restructuring. It is not enough to just stand at the beginning and say what changes are coming up. It takes regular exchange and open communication in the restructuring process.

    This also means that you share new decisions, report problems and also make progress in the right direction known to the team. The more transparent you are as a manager, the greater the greater gives way to uncertainty and trust is created.

  • Give reasons for decisions.

    When restructuring, many employees want a reason for the decisions made. Why is this being done exactly and what triggers have led to it? Executives do not have to prepare every economic detail, but a comprehensible justification helps more understanding of the situation of the company and the need for restructuring.

  • Make the goals clear and understandable.

    In addition to the causes, the goal should also be clearly communicated. What should the restructuring bring, what effects are being sought and how does this help to get back on track? Having an understandable goal helps employees identify identify with this and do your best yourself to achieve your goals.

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3rd November 2020Author: Nils Warkentin

Nils Warkentin studied business administration at the Justus Liebig University in Giessen. On the career bible, he is devoted to topics related to studies, career entry and office life.

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