PROTECT THE CORE BUSINESS WHILE RESTRUCTURING YOUR COMPANY - A Glen Wakeman Interview
Markets change and businesses must adapt. But adaptations have risks that must be managed. How to Manage Change Management.
Plan for Disruption Massive changes like divestitures, integrations, and new business unit launches all cause unintended consequences. Unintended consequences can include customer loss, employee loss, cost overruns, schedule delays. They are a normal part of any change process that require you to plan ahead. Do not wait for them to happen before you act.
Isolate Your Core Business Against Disruptions You can build protective barriers in your company ahead of the changes by thinking through your designs. For example, geographies can be utilized to create isolation. A different city, building, floor, space or office all create natural barriers. Organizations do also. Divide your organizations into separate teams, like red teams and blue teams wherein one team operates and the other makes changes. They each have a better chance of succeeding if their missions aren't mixed. Control them with charters and metrics.
Implement an Early Warning System Think about the many things that can go wrong and monitor their status, not unlike an operating room. Pay particular attention to performance drivers like key customer satisfaction and employee engagement. Financials should also be used to track progress and isolate risk. Make sure your financial plans incorporate set-backs and breakage because they are inevitable. Ensure your margins and cash positions can withstand the changes.
