Building Block 2: People

Dino Dogan ()
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Dino Dogan: Luxembourg School of Business

Chapter Chapter 5 in Seven Building Blocks of a Successful Corporate Restructuring, 2024, pp 53-79 from Springer

Abstract: Abstract It is still the people acting within the company who shape the company the most. And changes are not implemented by companies and organizations, but by people. Restructuring is also a team sport, both in terms of the restructuring process and the subsequent realization of all success potentials resulting from the restructuring by the line organization. When assembling strong (management) teams, a positive selection should be made based on the following criteria: formal education, practical experience, demonstrable results, international experience, agility, and personal chemistry. In doing so, the company may also need to part with employees, especially if they have significantly contributed to the company’s difficulties. Given the often high complexity of restructuring projects, the use of management consultants to complement competencies and the utilization of their cross-industry best practices can make a value-adding contribution to the overall project. However, if the consultants remain in the company for a longer period, they are no longer part of the solution but have themselves become the problem. Simple and honest interpersonal communication is the fuel of any successful restructuring. It ensures that all forces in the company work in the same direction. Delivering bad news is the supreme discipline in communication and must be well learned and executed. It is the personal task of the leadership team to keep employees continuously informed about the restructuring through dialogue and to obtain their feedback. In this process, communication adapted to the various stakeholders, especially in terms of form, content, and language, simplifies the successful dissemination of the essential messages within the company. This helps employees on their emotional journey through the change process and allows the company to quickly refocus on the market and day-to-day business.

Date: 2024
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DOI: 10.1007/978-3-658-46359-5_5

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