Boris Blanche Reveals the Pros and Cons of Business Restructuring

When the markets becomes in stable and there is a prospective economic meltdown, a lot of businesses will consider restructuring. Experts like Boris Blanche have worked for many years in helping businesses complete restructurings and they have seen all the pros and cons that this brings with it. It is important to understand that business restructuring is not necessarily the best solution and that any business must consider its advantages and disadvantages before moving ahead.


Boris Blanche on the Pros of Restructuring


The advantages of restructuring include:


  1.  That there is a significant change in the way ideas are approached. Because everybody thinks differently, a change is often required and when that change happens, the way issues are approached also becomes different. Because businesses need to remain competitive, a fresh look is often required.
  2.  That it encourages communication and engagement across the organization. It is absolutely vital that the entire workforce is involved in the process. In fact, if the business has more than 50 employees, this is a legal requirement.
  3.  That it allows businesses to shape their own future culture. It is incredibly difficult to change an organizational culture but restructuring a business provides an opportunity to finally do this. This is because a restructuring will require reviewing all policies and procedures. It is not unheard of for the culture of the company to be the very reason why it was not remaining competitive period


Boris Blanche on the Cons of Restructuring


At the same time, there are some very significant advantages to be aware of as well. They include:


  1.  That investors often look negatively on restructuring period is harold’s in a time of uncertainty and that is something investors do not like. The result is that stock prices generally drop-in publicly traded companies and it can be difficult to recover from this.
  2.  That assets may be depleted. Unfortunately, a restructuring often means curtailing some facilities and the workforce. Everybody knows that employees are the lifeblood and the greatest asset of any business with some will have to go. This means a lot of skill but also a lot of trust by those who remain.
  3.  That employees will start to panic. During the restructuring, when it is not yet clear which employees will go and which ones will stay, there will be a significant degree of uncertainty and panic. That can be to the detriment of the organization as a whole because people will inevitably also become less productive.
  4.  That it hurts a business’ reputation. When a company has to restructure, it usually means that things are not going well. This is what the market will see above all else and a damaged can be very difficult to recover from.


Sometimes, restructuring is the only way for a business to continue to survive, in which case the pros will always outweigh the cons. If restructuring is not an absolute necessity however, then it is important to consider whether the pros or the cons weigh the heaviest.