The share of new items indicator does not reflect the improvements that were introduced into existing products during the company's restructuring process.
Productivity and wage levels
The most reliable criterion for assessing the singapore business mailing list effectiveness of restructuring is labor productivity. The level of employee salaries, in turn, does not always reflect the results of changes, especially in monopolistic companies that can maintain high salaries regardless of the reorganization process.
In some cases, monopolistic and quasi-state companies may inflate labor costs in order to increase the cost of production and justify the need to raise prices or increase expense items and the budget for their operation.
Productivity and wage levels
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At the initial stage of a company's restructuring, it is advisable to develop performance indicators. This will not only help establish measurable criteria for success, but will also allow you to correctly prioritize the reorganization process.
To successfully implement the restructuring, a monitoring plan should be developed based on the selected performance indicators. At each stage of monitoring, factor analysis should be performed, the reasons for deviations from the planned data should be identified, and appropriate management measures should be developed.
"Pitfalls" of the business restructuring procedure
Many managers fail to consider the psychological and practical difficulties that may arise when implementing structural changes. Let's look at some of them:
The illusion of quick results from restructuring
In reality, the immediate effect of a company's restructuring is not always obvious, and negative dynamics may even be observed in the early stages of the process. For example, an increase in the tax burden will reduce profitability. There is no need to panic: in the long term, a carefully planned restructuring will increase the capitalization of the business.
Escalation of conflicts between shareholders
Even if shareholders are on good terms, trying to formalize their interactions can provoke conflicts. Restructuring itself is not always the cause of disagreements, but it can increase existing tensions.
The desire to outsource all tasks
Many business owners seek a simple and universal solution to their problems from a consultant, forgetting that he has a limited understanding of the specifics of the company, unlike its owner. Although the help of external consultants in the restructuring process is extremely important, it should only be a supporting factor. If the owner cannot form his own vision of the future business, this will jeopardize the existence of the company.
Lack of employee engagement
The success of a company's restructuring largely depends on how well all employees understand its essence. Changes will not happen if the team does not support and believe in them. It is important to involve employees in the transformation process. This may involve not only sending out information letters, but also organizing meetings to discuss the need and details of the restructuring.
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