With the restructuring of a company good and bad news often go hand in hand: while layoffs and adjustments in customer and product segments are often the case, a company after a properly executed restructuring achieves lasting sales and profit increase and creates new jobs.

The change to a continually thriving company succeeds especially with appreciative leadership and competent employees who despite the challenging situation are dedicated and committed.

Subsequently, I will address some measures I consider important that specifically concern the personnel side of restructuring:

  • Intention of Restructuring: Many react too early with laying people off; but for a strategic reframing good employees who know the company and have the ‘gene’ to turn a company’s luck around are essential.
  • Recognising the Crisis: Identifying a crisis is an issue of acquisition and evaluation of information as well as an issue of communication. Often, communication between management, leadership and employees starts too late. It is bad when employees learn through the press that the company is in jeopardy. Many in leading roles are overwhelmed, concentrate only on themselves and their situation instead of operating entrepreneurial.
  • Initiating the Restructuring: All external stakeholders have to be involved in this and be fully informed. Media spokespeople, social media etc. have to stress the central messages and credibly get them across.
  • Rough Analysis: It is about a general overview of the economic situation of the company in its past, present and future and a discussion about possible short-term measures to which all employees should be able to contribute.
  • Immediate Action: It is about quickly stabilising the company. It is crucial at this stage to bind top performers to the company and make them messengers to the inside and outside.
  • Concept of Restructuring: Such a concept is directed towards the future, outlines a model and necessary personnel measures and includes scenarios as well as a Plan-P&L-Calculation. Commitment and responsibility of all employees is necessary.
  • Implementation: Initial successes should be made visible as early as possible. This gives everyone new energy and motivation. It is most certainly not only about layoffs but also about re- and up-skilling!
  • Control: This gives some indication to whether set goals have been met and which adaptations or changes are necessary to ensure a sustainably successful development of the company.

The personnel perspective plays an essential role in the process of restructuring. The knowledge, abilities, loyalty and motivation of executives and employees substantially decide the success of the restructuring and determine whether sustainable competitiveness and profit will be achieved.