keys to knowing when it is time for a middle market organizational shakeup

Keys To Knowing When It’s Time For A Middle Market Organizational Shakeup

In Strategy Resources by Brandt A. HandleyLeave a Comment

Major organizational changes aren’t to be taken lightly, they are intentionally massive upheavals. They can be a logistical nightmare and cause pain points across your company and teams. However, there are times when a reorganization can be beneficial or downright necessary for your Middle Market firm’s success. The key is to know when an org shakeup could be a positive and when it would be detrimental.

Positive Reasons For A Middle Market Organizational Change

To be fair, almost all companies probably start out thinking a reorganization or massive change is for positive reasons. They likely anticipate only positive outcomes once the painful “work” is done and they’ve all come out the other side. Staying competitive, being open to new business or strategies, improving internal atmosphere are just a few “good” reasons. Also, becoming more strategic, right-sizing and aligning staff with roles where they are more adept.

Reasons Your Middle Market Company May Feel A Change-Up Is Mandatory

There are circumstances which may make you feel you must go through a complete reorganization, due to their severity or depth. For instance, if your Middle Market company has been part of a Merger and Acquisition. Alternatively, if it is looking to or has recently globalized. Also, if you have significantly expanded or contracted in size, it can feel like you must shake up your structure.

What Your Middle Market Firm Must Consider

Any and all of the reasons listed are valid and compelling for looking at shaking up your organization. Moreover, they may precipitate small or large-scale changes, depending on what your particular situation and needs are. However, none of them really require absolutely that a reorganization or restructuring happen. Your C-Suite and board of advisors or directors should still spend time evaluating what exact changes could happen, should happen and need to happen in order for your Middle Market company to remain successful and improve within your current or new reality. Knowing the facts of why the changes should occur will bring about success much more readily than relying on assumptions about what will happen.

Some things you’ll want to think about before making any decisions are:
  • What areas of the business will be affected, to what extreme and for how long?
  • Which areas of the business will be most affected?
  • What areas of the business will be least affected?
  • Which teams are least prepared for this process?
  • Which teams are most prepared & how could they assist others?
  • What specifically will run more effectively or efficiently, how and why?
  • What specifically will run less effectively or efficiently, how and why?
  • How specifically will your customers be impacted during and after?
  • How specifically will your vendors and partners be impacted during and after?
  • What additional costs will you incur?
  • Which additional support, education, software, etc. will be needed?
  • What is the main why for the change and could it be resolved through less invasive means?

If your Middle Market organization feels like an organizational shakeup is in order, take some time to evaluate why and the implications of doing so before you start. Your employees and company will benefit from your preparedness.

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