To keep up--and even get ahead--of the race in the market today, chief financial officers must have a good grasp of the situation to be able to strategise better for the months to come.
CFOs must lean on a systematic phased approach to restructuring strategies for the future to be able to plan correctly, and consequently execute and adapt.
Phase 1 – The case for change
In the initial phase, finance leaders must make a compelling case for change and communicate the strategic rationale behind the restructuring.
This involves setting the direction for the transformation, prioritising opportunities, and expressing the intent to create a stronger, more prosperous company. Middle and frontline managers play a crucial role in conveying this message and addressing employee concerns.
Phase 2 – Designing the future
During the second phase, finance leaders translate the strategic direction into a detailed design for the future processes, organisation, and systems.
This requires a thorough analysis of the current state, identification of areas for improvement, and development of a comprehensive plan for the transition.
Effective communication and collaboration between leaders, managers, and employees are essential to ensure a smooth and successful transformation.
Phase 3 – Execution
In the final phase, the detailed design becomes the new normal for the organisation, and the focus shifts to execution and embedding the changes.
Finance leaders must provide ongoing support, guidance, and resources to ensure the successful implementation of the restructuring. Regular communication, performance tracking, and continuous improvement initiatives are essential to maintain momentum and sustain the positive changes.
