Check out this article on Chief Executive written by our very own John Touey where he discusses the importance of strategic restructuring in businesses to ensure solvency and smooth succession. The article emphasizes the need for a systemic approach to restructuring, where companies must focus on short-term cost reduction and consider long-term succession planning.
Strategic Restructuring: This involves more than just cost-cutting measures. It includes a complete overhaul of business operations, management structures, and even business models to ensure the company’s survival and growth.
Solvency vs. Succession: While solvency focuses on the company’s ability to meet its short-term liabilities, succession planning is about ensuring the continuity of leadership. The two should be balanced effectively in any restructuring plan.
Role of Leadership: Leaders are crucial in managing the restructuring process. They must communicate effectively with stakeholders, make tough decisions, and lead by example.
Future-Proofing the Business: The goal of restructuring should be to create a robust and flexible business model that can withstand future challenges. This includes diversifying revenue streams, investing in technology, and developing a strong talent pipeline.