Re-structuring and Organizational Change 

• Many companies have evolved over time-the business, the organization, teams, the departments, the processes and procedures have changed or forced to change.

• However, there is a need to understand the key driver if this change is correct or enough to meet the requirements. 

• In day-to-day business, the customer and the service to be provided are key drivers.

• Strategic and operational potential for improvement and development are not a priority.

• In the medium and long term, this creates a gap.

• The gap needs to be filled by restructuring the business, the organization, teams, the departments, the processes or procedures.

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Company Re-structuring

Restructuring essentially acts as an in-depth reorganization conducted for the primary purpose of returning a corporation to profitability and productivity. Company restructuring is a corporate management term that broadly refers to a company doing one of the following:

• Business Re-Structuring: Changing its organizational structure, which can involve shifting direct reports to a different manager, reallocating resources to other parts of the business, etc.

• Financial Re-Structuring: Changing its financial structure, which can involve selling assets, refinancing debt at lower interest rates, or even filing for bankruptcy

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Business Re-structuring

KERY only concentrates on business restructuring, not on financial restructuring.

A business restructuring involves radically changing a company's organizational and operating structure to permanently/swiftly address serious operational issues that could lead to a corporation's shutdown or liquidation. With a business  restructuring, companies change contractual relationships with shareholders, employees and other stakeholders. Restructuring essentially acts as an in-depth reorganization conducted for the primary purpose of returning a corporation to profitability and productivity. 

The types of business structuring that KERY concentrate are:

• Organizational Restructuring

• Department/Teams Restructuring

• Portfolio Restructuring

• Restructuring/Optimization of Processes, Procedures, Workflows and Best Operating Practices

 

Organizational Restructuring

An organizational restructuring strategy involves redesigning operations and management reporting structures to address and correct the operational issues that led to a company's distressed position. A restructuring organization uses downsizing to eliminate costly overhead and enable a company to return to profitability or reorganizing the entire operations to achieve new goals under new strategy, processes and management of operations. Layoffs of nonessential personnel, process redesign, location closures and renegotiation of existing contracts all result from this strategy including restructuring compensation and benefit packages for employees who remain.

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Portfolio Restructuring

Portfolio restructuring allows a corporation to refocus on its core activities and new targeted product/services and raise much needed capital. It can use the proceeds of these transactions to strengthen its core business or acquire other businesses that closely fit its strategy and contribute to a profitable bottom line.

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Restructuring/Optimization of Processes, Procedures, Workflows and Best Operating Practices

Entire restructuring of a business, department/team or portfolio may not be required in majority of the challenges of the enterprises. After the assessment, sometimes a process is found to be optimized or restructured to avoid the challenge. If the processes, procedures, workflows and best operating practices are not working for the business unit, department or team which make the employees inefficient, increase cost of operations, reduce profits or increase the customer satisfaction, optimization/restructuring may be required. KERY provides a full service package starting from the assessment of the core reason behind, recommendation letter to the enterprise how to avoid the problem; and design, re-write and the implementation of the optimized/restrctured processes, procedures, workflows and best operating practises. 

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When companies need restructuring?

The primary reasons for restructuring are various. If the enterprises notice one of the reasons below. We believe that an assessment is required to analyse if there is a restructuring is required or not:

• If the enterprise isn’t meeting its KPIs, the processes or employees have become inefficient, or if there are essential tasks that aren’t covered by any position

• If the enterprise has merged with or acquired another organization

• If an employee in a key position has left, which leaves an opportunity to question the organizational structure

• If the enterprise targets a new opportunity, such as launching a new product or capturing a new market

• If the needs of the customer base have changed and the enterprise want to adapt itself to these changes

• If the The organization has grown or is downsizing

• If the managers have too many direct reports which creates inefficiencies in the management performance

 

How do the enterprises decide the level of restructuring?

• If these reasons are noticed particularly in a department or team or a portfolio, the enterprises  may choose to just undergo a department/team/portfolio restructure, which means only a specific department/team/portfolio will be affected by a reorganization or restructuring. 

• If the enterprise targets a new opportunity, such as launching a new product or capturing a new market, the enterprises may choose a portfolio restructure, which means only a specific product/service portfolio will be affected by the restructuring. 

• If the enterprise notice an inefficiency particularly in a process, the enterprises  may choose to just undergo optimization or restructuring of processes, procedures, workflows and best operating practices, which means only a specific process, procedure, workflow and best operating practice will be affected by restructuring. 

 

When that happens, the company has identified problems or inefficiencies within just one department, but because a company is heavily interconnected, what affects one department often affects other departments. While it’s certainly easier to reorganize a department, it’s not uncommon for a company to overhaul its entire company structure in one fell swoop. 

 

The Steps of Restructuring (Business or Department/Team)

Step 1-Assessment and Problem Definition

KERY conducts and assessment at the enterprise to:

• analyse the core reasons behind the restructuring demand

• find out affected departments/teams/portfolios and processes, procedures, workflows and best operating practices

• bring recommendations to the enterprise how to meet the restructuring demand

Step 2-Formulation of Restructuring Strategy

• After the assessment stage, the Business Strategy Formulation stage is applied.

• The first component of the Restructuring Strategy is finding out why upper management wants to restructure in the first place. Without understanding the new direction the company’s heading or defining the problem the company is hoping to solve, there is nothing to guide the reorganization process and no way to measure its success.

• The business strategy need to arm with the goals or criteria to meet with this company reorganization plan—if such a plan is even practical. If the enterprise hasn’t solidified its business strategy yet, the enterprise need to take a step back and go through the strategic planning first.

• The possible impacts of the execution of the strategy to the enterprise shall be discussed with the enterprise during formulation stage.

Step 3-Identify strengths and weaknesses in the current organizational structure

• Finding out Organizational Structure: After the strategy formulation, the strategy needs to be assessed if it will fit the enterprise and if the the current organizational structure is failing to meet company goals and where it’s working with an organizational chart evaluation to get an elevated perspective on where the enterprise structure stands .

• Evaluation of Organizational Chart/Employee Communication: The first part of the organizational structure evaluation process should be to gather feedback. The enterprises sometimes undergo restructuring planning without taking into consideration the people who will be affected by both departmental and company restructuring plans. However, the employees of the enterprises often have valuable insights on what isn’t working and what the enterprise should continue doing. KERY always gather those insights and include them throughout the restructuring process since without feeling that the concerns of the employees and the ideas are taken seriously and are truly anonymous, the employees shall be reluctant to divulge any feedback regarding a company restructure. KERY believes that a successful Restructuring Strategy is based on fostering a safe environment in which employees feel their thoughts are valued in which various applications proceed like conducting anonymous survey to ask what they would change and how they would approach a company reorganization.

• Evaluation of Organizational Chart/Stakeholder & HR Communication: The second part of organizational structure evaluation process is gathering feedback from the stakeholders in the reorganization planning process and leaning heavily on HR with significant attention to confidentality and  focus on the nuances to company restructuring that need special approval and consideration. Union agreements, employment contracts, work accommodations, etc. will all need input from appropriate parties. 

• Risk Assessment: KERY weigh the advantages or profit of a potential restructure against the risk, which includes employees leaving due to organizational change with risk assessment. After the risk assessment, if the problem won’t be solved through restructure, KERY shall ofer optimization of process/procedure/workflow/operating practises which will save the enterprise to waste eforts and avoid potential losses for the enterprise.

Step 4-Considering Options and Designing a New Structure 

• Creating a New Organization Model: A draft new Organizational Model is prepared at this stage after the problem is determined with the current organizational structure and gathered feedback from the employees, the stakeholders & the management and condering all the existing job functions. The new Organizational Model with a new organizational structure shall include:

  • The vertical and horizontal lines of authority

  • An indication of who will be making formal decisions within departments

  • Attributes of employees, including skills and experience

  • The definition and distribution of functions throughout the organization and the relationships among those functions

• Determining the Pros and Cons of Different Types of Organizational Structures: The pros and cons of different types of organizational structures (hierarchical, horizontal, matrix, etc.) shall defined.

• Creating a New Organizational Chart: A new & draft Organizational chart is prepared to see the layout and interdependencies of your new structure while working through options within the Restructure Process with a a visual to clarify your course of action to employees and keeping all parties on the same page.

• Risk Assessment: KERY weigh the advantages and disadvantages of the new organizational structure with risk assessment before communicating the restructure to the management of the enterprise. After approval, the communication to the enterprise shall take place.

Step 5-Communicating the Restructure

• Announcement to the Enterprise: Once the weighed various options in the restructuring planning and the best path forward is determined, it’s time to show the enterprise with a restructure announcement. A high level of attention and care shall be applied not to spring the change the employees with a clear communication and transparency the highest priority throughout the restructuring process. This process is supported by:

  • an organizational chart which help create clarity in this situation, especially paired with details about each role's responsibilities

  • a clear communication with the managers with a direct report to ensure that they’ll be able to answer questions and help with execution.

• Gathering Feedback: After the announcement, it is necessary to get feedback and questions from the employees and coordination with HR manager to to extol the amount of consideration that went into the reorganization plan and the benefits it will provide to everyone. Welcome questions—after all, carrying out a successful company reorganization process from start to finish takes the cooperation of everyone involved.

• Formulation of final version of the Restructuring Process: At this stage, the restructuring process will come into the final version from start to finish takes the cooperation of everyone involved.

Step 6-Launching the restructure and adjust as necessary

• At this stage, KERY develops a schedule and implementation plan with the managers of the enterprise for the lauch of the restructure with clearly defined roles & responsibilities, actions and roadmap to execute the company or department restructuring.

• The execution shall include time management for the employees to adjust to the restructuring to accurately gauge its effects.

• The gathered feedback and the experiences during the implementation shall support KERY and the enterprise to think back to the business strategy, and make adjustments if the new organizational structure still doesn’t meet the ultimate goals. 

• During the implementation, if a need to help getting employees to accept the change, the change management models shall be delivered to these employees to help them prepare.

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The Factors behind Successful Restructuring

• Motivation & Involvement: If all the stakeholders are motivated, involved and stay organized, the restructure can guide the enterprise to a greater and more efficient organizational structure.

• Properly Designed and Implemented Key Elements: restructuring can be a fresh start for everyone; it can revitalize a company, reinvigorate employees, and allow for greater career growth if the key elements of the restructuring (planning and communication) are designed and executed properly.

• The Management Support: It is important that the attitude of the management about the restructuring strategy sets the tone for how it will be received by the employees and co-workers. If they’re excited about the restructuring, that excitement will be reflected in all involved throughout the restructuring process. If they’re somber, expect those affected to be suspicious and maybe even hostile. 

 

The Steps of Restructuring (Portfolio)

ASSESSMENT

• KERY conducts assessments to develop and implement the correct strategy.

• KERY also prepares the feasibility report for an investment in establishing or improving the team and network for the new portfolio or the change in the existing portfolio.

DESIGNING the CONCEPT, MODEL, ORGANIZATION & STRATEGY

• The Strategy Set-up includes a package of concepts, approaches, processes, business model for team/organisation set-up with channel establishment to meet the requirements of the enterprise.

• The Process Set-up includes preparation of procedures, processes, work flows, job profiles, duties/responsibilities and the documentation for the new portfolio or the change in the existing portfolio and communicating with the management and the employees of the enterprise by conducting seminars.

• The Organisation Set-up includes includes the design, implementation and then audit of the teams, warehouses, work stations and the employees for the new portfolio or the change in the existing portfolio as well as the infrastructure for successful operation. 

• The Competence Set-up includes designation, configuration and specifications of products for the new portfolio or the change in the existing portfolio and their training to employees of the enterprise.

• The Customer Support Set-up includes the foundation of customer support function with its processes, procedures, teams and infrastructure such as inventory set-up, stock management and audit system after assessment of the needs, expectations and requirements of customers with legal compliance.

​ESTABLISHMENT/IMPROVEMENT of the MANAGEMENT SYSTEM

• Distribution Management: KERY supports the enterprises in each step in the distribution system for the new portfolio or the change in the existing portfolio and interrelations of all segments from manufacturer to consumer including the distribution channel, sales organization, supply chain, trade association, trade press and after market trends.

• Manufacturing Management: KERY examine, design and implement the manufacturing functions for the new or changed portfolio, including market planning, sales training and management, advertising, selecting and directing employees, establishing and controlling budgets, executive responsibilities, managing for profit, trade shows and clinics, market research, branding, remanufacturing and manufacturer representative firms.

• Retail/Wholsale Management: KERY explore and identify wholesale and retail segments for the new or changed portfolio, including the organization, capitalization, layout, product lines, inventory control, purchasing, personnel, financial control and other management topics. In this step, KERY also look at functions of consumer-oriented marketing for all segments. This includes retail attitude, pricing and promotion, retail/ wholesale combinations, identity and store image, influence of aesthetics and design, purchasing procedures, employee hiring, personnel management and merchandising and display.

• Category Management: KERY bring an understanding of the best practices of Category Management with the key steps in the Category Management process and its application to the process through review of the products and to channel partners for the new or changed portfolio.

• Logistics & Supply Chain: KERY focuses on management of the flow of products from raw materials sourcing and acquisition through delivery to the final user, including logistics and transportation planning, information technology, response-based strategies, third party logistics and relationship management which design and implement the role of logistics and distribution in the marketing process for the new or changed portfolio.

• Field Sales Management: KERY supports the enterprise in gaining skills in Field Sales Management including selling skills, expense management, time management, merchandising/advertising plans, sales report writing/sales forecast plans, trade show management and human resource skills for the new or changed portfolio.

• Globalization and Challenges Management: Challenges are reviewed with the enterprise confronting the new or changed portfolio with emphasis on the changing distribution channels and their effect on manufacturing. Concepts are introduced by KERY for traditional and retail distribution and how these changes will be managed in the multinational business environment.

• Research Management: KERY shall conduct researches and projects based on the new or changed portfolio business of the customer including advertising, merchandising and promotion, personnel requirements, pricing and inventory, building, design and layout, product and service selection and financial considerations.

​ESTABLISHMENT/IMPROVEMENT of OPERATIONS

Each enteprise shall have for new or changed portfolio that they need to stock and deliver to the customers when they need. This is a challenging task which could bring losses to the enterprises and the dissatisfaction to the customers. 

KERY establishes Operations System which includes processes, procedures, work flows, job descriptions, best operating practises, reporting and web portal for establishment and management of:

• Warehouse for enterprises, their branches and dealers including selection of location, capacity planning, lay-out planning, storage planning & addressing, selection of equipment/rack/storage areas, RFID/Barcode Systems, Order Tracking Portal and consulting to meet the needs and the product flows of the customers to determine the most appropriate storage solutions.

• Order Management System for registering, tracking and reporting the results of the processes for Customer Order Management (RFQ, Offer, Order, Pick & Pack, Transportation, Invoicing); and the operations of S&OP, supply chain, inventory, procurement, pricing, quality management, material resource planning and financial results.  

• Configuration System for the management of the IDs/RFID/Barcodes/Shelf Address/Shelf Location and configuration of the new or changed portfolio supported with spare part catalogues, price lists, stock & inventory lists.​

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Reference Works for Operations Consulting/Restructuring/Process Optimization 

• Business Restructuring (in Nanotechnology, Energy, Power Generation, Battery Storage Solutions, Boilers & Heat Exchangers, Renewables, Hybrid Power Plants, Temporary Rental Power Solutions, PV Solar, HVAC)

• Department-Team Restructuring (in Earth-Moving Machinery, Construction Machinery, Industrial Rental Solutions, Poles, Gantries, Energy Solutions, Renewables, Power Generation, Automotive)

• Portfolio Restructuring (in Nanotechnology, Energy, Power Generation, Earth-Moving Machinery, Construction Machinery, Industrial Rental Solutions, OEM Engines/Drive Trains, Poles, Gantries, Energy Solutions, Renewables, Power Generation, Automotive, Battery Storage Solutions, Boilers & Heat Exchangers, Hybrid Power Plants, Temporary Rental Power Solutions, PV Solar, HVAC, Water Generation Systems)

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Project Locations for Operations Consulting/Restructuring/Process Optimization 

• Business Restructuring (USA, Turkey, Netherlands, Germany, Italy, UAE, Qatar) (8 Companies)

• Department-Team Restructuring (USA, Turkey, Netherlands, Germany, Italy, Bangladesh) (10 Companies)

• Portfolio Restructuring (USA, Turkey, Netherlands, UK, Germany, Italy, UAE, Qatar, Sweden, Denmark) (14 Companies)

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CONTRIBUTION SNAPSHOT

An international Dutch Renewable Energy Project Integrator active in 12 countries in the world-In a promising and highly competitive business with regulation challenge, tough environmental conditions, customers with budget constraints and technically challenging problems, devised inventive and creative strategies & innovative solutions comprises PV Solar, Diesel Power Generation & Hybrid Solutions to generate maximum exposure at the lowest possible costs, strict cooperation with PV Module producers and extensive cooperation with the teams at headquarters/subsidiaries by identifying/capitalizing on untapped profitable market opportunities in MENA Region and East EU and transforming the company from a system integrator and cell producer into a turnkey system provider, equipment reseller and solution generating center with a network of dealers. Consultancy to investors for technical/financial feasibility, technology and product selection. Consultancy to Equipment OEMs for market potential assessment and market development efforts. Valuation / financial modelling of ready-to-finance projects to investors and financial institutions.

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Turkish Energy Solutions Manufacturer market leader in Turkey and leading player worldwide-Developed reputation for resourcefulness and ability to deliver real value and tangible results on shoestring marketing budgets, low-budget customers looking for low-value products with budget constraints in challenging and turbulent emerging markets, top customers in the developed markets with strict quality expectations. Brought cross-industrial experience after raising awareness and demand high-quality, economic early-market products in power solutions and green energy solutions, created compelling marketing and sales pitches, aggressively follow bids, tenders & dealer opportunities, shortened sales and production cycles, introduced innovative solutions which improve investment cost of customers and production cost of the company. Built market share with leading edge customers. Built strategic alliances with renewable energy solution providers and develop projects with them in which existing products have higher sales value that improved the profitability of operations and introduced new project awards that generates millions of USD revenue additionally. Created systems in which business development, sales, project management, procurement and production planning teams are integrated and standardized processes that minimized costs while maximizing returns for the company with few investment dollars.