Markets are constantly changing. Companies must recognize this, and their departments must adapt their internal and external processes. This process is called reorganization or restructuring, and its goal is to increase effectiveness and efficiency. This poses a great challenge for the entire organization – management and employees alike.
Mergers, cost reduction, streamlining of the organization, profit improvement, company capitalization, strengthening of competitive position, company restructuring or redevelopment – there are many reasons for reorganization projects.
With our two phase approach, we achieve rapid profit improvements through comprehensive examination of all possibilities and the implementation of short-term realizable measures. Parallel to this, we create a learning organization in which the knowledge and experience of all employees is incorporated and the company culture is continually refined in order to permanently anchor the changes within the organization. To this end, our management consultants will also assume on demand responsibility for the operating implementation of the reorganization.
Whether in large or small projects, the early acceptance by management and affected employees is essential for the success of a reorganization project. As leading management consultants, we analyze not only your organization and prepare optimization scenarios, but we also develop together with you a transparent, accompanying communications strategy. We especially place great emphasis on early communication with all employees affected by the reorganization. That way, less speculation arises, resistance is defused, and the necessary efforts of the employees can be focused on the benefits of the project.
The close participation of employees in the reorganization project is, for example, part of our Lean Overhead approach, in that non-value added areas of activities and processes are revealed and reduced, in order to increase efficiency. On the one hand, this leads to a reduction of some internal services; and on the other, the value creating activities can be more efficiently arranged.
Concentration on the essentials is also the goal of the reorganization using Fast Turnaround. For all possibilities must be exhausted where critical company situations exist. Using Fast Turnaround, we determine the current profitability deficits and prepare measures to correct them and to achieve the desired ROCE.
Typical Results of Reorganization
- Cost reduction through recognition and avoidance of non-value added tasks
- Labor cost reduction through streamlining of existing processes
- New development of more efficient processes
- Decrease in through-put and transport times
- Productivity increase and quality improvement
- Reduction of maintenance and material costs
- Goal-oriented steering through Management by Objectives (MBO)
Sustainable change processes
In interdisciplinary consulting teams, which we staff specifically for your project requirements, we work together with your employees to develop transformation solutions to reorganize your company and implement them vigorously and on-going. In order to precisely tailor the project approach, we begin with a short screening of data to obtain a first assessment of the situation on-site. In this pre-project, we prepare initial steps and define realistic goals.
From the beginning of the project, our management consultants use these results to fine-tune our approach. Essential for a sustainable reorganization is the exact analysis of the current situation. Most projects require concentration on core value-added processes and the actual desired customer value. A full evaluation includes, in addition, the knowledge and experience of the employees, which we ascertain through structured questionnaires or interviews. We also include – depending on the project terms – selected customers or suppliers in the analysis or concept phase in order to achieve the highest possible customer value.
As a function of the project requirements, quantitative as well as qualitative aspects are included in the detailed analysis in order to create maximum transparency. Here, we strongly follow the motto, “as much analysis as necessary, as much implementation as possible”. The TARGUS Toolbox offers various concepts for reorganization, which we, depending on the project definition, systematically and exactly tailor to your company’s requirements.
Due to our interdisciplinary experience, we recognize very quickly the essential levers for necessary change. Yet, in every company there are distinct requirements which must be taken into account in the proposing solutions. In order to achieve the highest possible implementation, the results of the analysis are discussed in the interdisciplinary teams made up of Targus consultants and your workers, and the key points are agreed upon. Then, various measures and scenarios are systematically developed, and when necessary, their effect is determined via complex computer simulations.
Objectivity fosters readiness to change
Our analytical and cooperative approach contributes, on the one hand, to the objectivity of the change process, and on the other hand, increases its acceptance by the affected workforce. Practical measures for increasing customer value and efficiency are developed based on the results of our analysis. The reorganization can result in decentralization or a combination of formerly separate processes. Often, great improvements in the workflow can be achieved through small changes such as the alignment of equipment or changes in cycles. Likewise, the results of the analysis can be surprising when they reveal, for example, that in-house production is more efficient than outsourcing of parts.
A further important factor for successful reorganization projects is the assignment of a project manager who is responsible for the total change process. In this function, (s)he reports, on the one hand, directly to management, and on the other hand, is the contact person for the employees and is responsible for on-going internal communication. Project progress should not only be documented but also must be communicated to employees through appropriate means. TARGUS supports the process manager actively and can also serve as a buffer in difficult change processes.
Rapid implementation increases success
Implementation should begin immediately after the concept phase in order to utilize the dynamic of the process without losing time and motivation, and to achieve rapid results using the new routines. As experienced management consultants, we support you during the pilot project and in the implementation of the agreed upon measures. If desired, we can also create development plans and coaching measures for individual employees.
Project Controlling is essential
Using our systematic project controlling system, the reorganization of the company can be guided, coordinated, and managed, no matter what the size of the project. There, responsibilities, deadlines, and future steps can be documented. The status of implementation and other approaches can be transparently displayed using project controlling.