Restructuring is a strategic process that an organisation can undertake to adapt to changing market conditions or address financial difficulties. Restructuring can encompass various activities, from rationalising business lines to divesting non-core assets. Its objective is to transform an organisation’s operating model to become leaner, more agile, and better positioned for growth. In the current business climate, transformation is becoming increasingly crucial for organisations to avoid insolvency.
Restructuring can have a profound impact on an organisation’s operating model. At its core, the operating model reflects how the organisation creates and delivers value to its customers. Such a transformation programme may impact an operating model’s dimensions, including technology, capabilities, processes, and governance. For example, introducing new technologies such as AI and automation can enable more efficient and effective techniques. The rationalisation of functional capabilities can help an organisation focus on its core competencies.
Restructuring programmes typically leverage a range of technologies to support their implementation. These may include process automation tools, data analytics platforms, and project management software. By adopting these technologies, organisations can improve the speed and quality of their transformation efforts.
Exciting elements specific to such transformation programmes may include:
- the development of new products or services,
- the expansion into new markets, or
- the creation of entirely new business models.
By embracing innovation and change, organisations such as Tidjane Thiam and HSBC’s arm focused on the Asia market can reinvent themselves to meet the demands of a rapidly evolving business landscape.
Best practices in restructuring programmes
Best practices to consider in a typical transformation programme include:
- developing a clear vision and strategy,
- engaging stakeholders early and often, and
- creating a robust governance framework.
Organisations such as Centrica can maximise their chances of success by establishing a comprehensive transformation programme plan and ensuring effective communication.
However, restructuring programmes face significant challenges, including resistance to change, uncertainty around outcomes, and potential legal and regulatory issues. To mitigate these risks, organisations such as Bridgewater or CoinFlex must carefully plan their restructuring efforts, engage with stakeholders, and take a collaborative approach to implementation.
As a consulting firm specialising in restructuring professional services, we have helped numerous organisations achieve successful transformations. Our team of experts leverages the latest technologies and best practices to guide organisations such as Wiko or WeWork through restructuring, ensuring they emerge leaner, more agile, and better positioned for growth.
References:
- The Guardian, “Wiko plans to cut jobs as part of restructuring after fall in sales”
- The Financial Times, “FTI Consulting hired to advise on WeWork debt restructuring”
- The Financial Times, “Vodafone, Google, and Ford join blockchain pilot to track cobalt supply chain”
- The New York Times, “WeWork and SoftBank, Once Partners, Are Now Adversaries”
- Reuters, “Hedge fund Bridgewater plans restructuring amid AI push, global expansion”
- Coin Telegraph, “CoinFlex restructuring approved in Seychelles as rebranding reportedly continues”
- The Financial Times, “Centrica faces rising competition and regulatory intervention”
- The Financial Times, “Tidjane Thiam takes over at Credit Suisse with focus on restructuring”
- The Financial Times, “HSBC to revamp wealth management business in Asia”