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Restructuring becomes essential at some stage in the lifecycle of any organization. In order to emerge triumphant through this tumultuous challenge, it is necessary that the focus remains on the challenges impeding the organization, Strategy Development to tackle the challenges, and prioritizing Strategic Initiatives to deliver radical results that lead the organization to Operational Excellence.
Redeployment is the most significant phase in the Restructuring process. Within Redeployment, the Assessment phase is critical as the revitalization of the whole organization is dependent on correct Assessments and right placement of employees based on those Assessments.
Proper Redeployment Assessment Management is of utmost importance in Restructuring, and it should follow a structured approach, which means managing 5 core areas:
- Manage Assessment Team
- Manage Anxiety Level of Candidates
- Manage Amount of “Deviant Behavior” in the Assessments
- Manage Level of Duplicity, Wild Guessing, and Other Forms of Distortion
- Manage Amount of Feedback and Its Timing after the Event
Managing 5 core areas ensures smooth implementation of the Redeployment Assessment process, which is a major milestone of the Restructuring project.
The Redeployment Assessment process has to be detailed, accurate, and prompt. Due Diligence in documenting the process, verifying particulars, and balance between Rapidity and Accurateness is essential because:
- Organizational requirement to concentrate on post-restructuring environment is intense.
- Employees’ urge to swiftly find out about their future is deep-seated.
- Objections by employee stakeholders, as a consequence of large-scale retrenchment is high.
- Probability of legal recourse by employees is also distinct.
- Future Employee Engagement is dependent on fair Assessment and correct placements.
Assessments are based on Data Integration which involves a complex set of Data Points. Therefore, Data Integration has to follow a strict process for it to be productive. Following guiding principles will help in comprehensive and unbiased Data Integration:
- Behavioral evidence, gathered throughout the assessment, should form the basis of discussion.
- Weightage given to certain competencies should be based on the evidence gathered in assessments.
- Decisions should be derived solely on the basis of evidence.
- Facilitator, who is experienced in integrating assessment data and challenging assessors to support their assessment ratings with behavioral evidence, should be engaged.
- Standards of performance should be very clearly defined against which individuals are assessed and assessment information is integrated.
- To increase consistency, the chair of integration should present at each assessment session.
Grounded on these guiding principles, strict adherence to the following 8 Key Steps can steer the Data Integration phase in the right direction and make it productive:
- List all measures
- Weight all measures
- Identify minimum qualifications
- Create an overall score
- Quality and reality check
- Enter real data
- Review results
- Pool the candidates
Let us look at the first 3 steps in further depth.
1. List all measures
This list includes both qualitative and quantitative aspects, i.e., job performance data as well as the performance measures.
2. Weight all measures
Relevant weightage should be assigned to each measure. Job performance measures normally have more weightage than the potential measures.
3. Identify minimum qualifications
It is important to build checks into the system for anomalies, such as someone scoring overall high while failing to meet the essential criteria. For such eventualities a minimum qualification criterion has to be set.
Interested in learning more about the 8 key steps for Data Integration during Redeployment Assessment Management? You can download an editable PowerPoint on Restructuring: Redeployment Assessment Management here on the Flevy documents marketplace.
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– Roderick Cameron, Founding Partner at SGFE Ltd
Restructuring is a turbulent process that shakes the foundations of the organization. The goal of Operational Excellence cannot be realized merely by the surgical removal of human resource during Redeployment after Restructuring.
Keeping focus on moving the organization forward with vitality means boosting the sagging morale of the employees who survive this storm. It is the attention to the surviving employees that is going to kick-start the Revitalization process and usher in a new Organizational Culture.
Employee Engagement is an absolutely vital aspect of the revitalized organization. Re-engagement of the remaining employees after Redeployment is important because:
- It is a given that engagement levels will be abysmally low.
- Motivation to work is not the top priority for most after Restructuring chaos.
- Insecurity is high and employees may be thinking about leaving the organizations on the first opportunity they get.
- The Revitalization of the organization depends on how the survivors are handled.
To handle such state of affairs, management must do the following:
- Develop a concrete plan for Re-engagement during the Organizational Design.
- Allocate appropriate time, effort, and budget for boosting motivation levels.
- Implement Re-engagement plans that address the diverse Motivational Drivers.
- Communicate consistently on an organizational level as well as individual level to reassure employees regarding their future.
- Train line managers on how to handle surviving team members.
- Push line managers to spend time with individual employees to learn:
- How team members have handled the Redeployment process.
- How employees sense the challenges moving forward.
- What primarily motivates them as individuals.
- Use motivational assessment methods and integrate the survivors into existing development discussions to align them with organizational processes.
Poor management of the Employee Re-engagement process is bound to have repercussions, such as:
- Absenteeism
- Low productivity levels.
- Substandard customer service quality levels resulting in tarnished image of the organization.
- Dwindling employees’ commitment to the organizations.
- Increased risk of switch overs.
Active Employee Re-engagement ensures that the employees are:
- Clear on the next steps.
- Clear about their new roles.
- Can effectively deliver against the new roles.
- Keen to work in the evolving scenario.
Redeployment in the Restructuring process affects all employees regardless of whether they stay or leave.
Employees typically showcase 4 types of reactions during this transition:
- Departure Grief
- Survivor Relief
- Survivor Irritation
- Departure Happiness
Typically, the organizational focus is more on the employees who are leaving, assuming that those who get to stay are happy employees. This may not be the case. Care must be taken to address the motivational drivers of all employees in this transitory process.
Let us examine the Employee State, their Motivational Drivers, and appropriate Actions to take during Restructuring, a little more deeply.
Departure Grief
The motivational drivers that induce the state of “departure grief” in employees include:
- Loss of earnings and benefits such as pension plan and health insurance can be stressful.
- Loss of daily routine can be upsetting and takes some time to cope with.
- Forced shift in lifestyle upsets not only the person but the family too which may take a psychological toll.
- Feeling of rejection crops up as a result of being let go, lowering self-esteem.
- Loss of financial empowerment puts the person, especially the head of the household, in a vulnerable position.
To help employees cope with Departure Grief, the organizational leadership should take some key actions, such as:
- Help the ex-employees through counselling sessions.
- Guide the employees in preparing job applications and CVs.
- Assist the ex-employees get placed in alternative jobs.
- Guide the ex-employees in putting the compensated amount to good use.
Interested in learning more about Re-engagement after Restructuring? You can download an editable PowerPoint on Re-engagement after Restructuring here on the Flevy documents marketplace.
Want to Achieve Excellence in Business Transformation?
Gain the knowledge and develop the expertise to become an expert in Business Transformation. Our frameworks are based on the thought leadership of leading consulting firms, academics, and recognized subject matter experts. Click here for full details.
“If you don’t transform your company, you’re stuck.” – Ursula Burns, Chairperson and CEO of VEON; former Chairperson and CEO of Xerox
Business Transformation is the process of fundamentally changing the systems, processes, people, and technology across an entire organization, business unit, or corporate function with the intention of achieving significant improvements in Revenue Growth, Cost Reduction, and/or Customer Satisfaction.
Transformation is pervasive across industries, particularly during times of disruption, as we are witnessing now as a result of COVID-19. However, despite how common these large scale efforts are, research shows that about 75% of these initiatives fail.
Leverage our frameworks to increase your chances of a successful Transformation by following best practices and avoiding failure-causing “Transformation Traps.”
Learn about our Business Transformation Best Practice Frameworks here.
Do You Find Value in This Framework?
You can download in-depth presentations on this and hundreds of similar business frameworks from the FlevyPro Library. FlevyPro is trusted and utilized by 1000s of management consultants and corporate executives. Here’s what some have to say:
“My FlevyPro subscription provides me with the most popular frameworks and decks in demand in today’s market. They not only augment my existing consulting and coaching offerings and delivery, but also keep me abreast of the latest trends, inspire new products and service offerings for my practice, and educate me in a fraction of the time and money of other solutions. I strongly recommend FlevyPro to any consultant serious about success.”
– Bill Branson, Founder at Strategic Business Architects
“As a niche strategic consulting firm, Flevy and FlevyPro frameworks and documents are an on-going reference to help us structure our findings and recommendations to our clients as well as improve their clarity, strength, and visual power. For us, it is an invaluable resource to increase our impact and value.”
– David Coloma, Consulting Area Manager at Cynertia Consulting
“FlevyPro has been a brilliant resource for me, as an independent growth consultant, to access a vast knowledge bank of presentations to support my work with clients. In terms of RoI, the value I received from the very first presentation I downloaded paid for my subscription many times over! The quality of the decks available allows me to punch way above my weight – it’s like having the resources of a Big 4 consultancy at your fingertips at a microscopic fraction of the overhead.”
– Roderick Cameron, Founding Partner at SGFE Ltd
Organizations that have survived over time have had to reinvent themselves over and over with the changes in the environment. These Business Transformations almost always include Cost Reduction that tend to lean towards Headcount Reduction. Headcount Reduction is typically achieved using 2 approaches:
- Downsizing
- Restructuring
Downsizing keeps the fundamentals of the roles same with only fewer people performing those roles. Whereas, Restructuring creates new roles, as well as modify existing roles, requiring a new mix of skills or altogether new resources to perform them.
Restructuring presents a more challenging task in that a new mix of skills has to be identified for each role, an Assessment Process has to be set up to assess existing employees against new competencies, and Redeployment after Restructuring (or new recruitment) done.
The important question in both scenarios is: Who should we eliminate and who should stay?
The question can be answered by devising and using key criteria to evaluate and then choose the most relevant assessment method.
Assessment of employees is key in both Downsizing as well as Restructuring. The Assessment Process has to be vigorous enough to identify the right employees to keep and lay off. A broader assessment process ensures coverage of more aspects of a new role which in turn makes the assessment process fairer. Measures, in this regard, may include:
- Covering a broad range of competencies in the interview process rather than concentrating on a few specific competencies.
- Using a mix of relevant performance data from the last role as well as some elements of future-oriented assessment, such as role plays or OPQs.
- Taking input from Line managers.
Linkage of the entire assessment process to the requirements of the job is the crucial part of this phase.
As with any assessment system, the content and design will be settled through consideration of various factors, some practical like cost, logistics and some more about safeguarding the output like instrument validity. When taking into account assessment tools for incorporation in the process it is beneficial to examine them against following criteria:
- Coverage of range
- Accuracy
- Relevance
- Freedom from bias
- Acceptability
- Practicality
The tools, based on the above criteria, help in various assessment methods that gather information on different aspects pertaining to the elements of the new roles. The most widely used Assessment methods include:
- Existing Performance Management Data
- Line Manager Performance Ratings
- Competency Based / Behavioral Interviews
- Personality Measures (OPQ) Linked to Competencies
- Simulation Exercises
- Pertinent Employee Data
Let us examine the methods in a little more detail.
Existing Performance Management Data
There are various benefits of using this employee assessment method, such as:
- No additional data gathering is required since the data is already in place.
- Such existing data can be obtained speedily and effortlessly.
- Existing performance data is perceived as pertinent.
There are some drawbacks associated with the existing Performance Management data method that executives should be mindful of:
- The data is often inconsistent and may vary in quality.
- Does not provide clear distinction between people.
- Does not reflect behavior therefore difficult to base decisions on.
- Usefulness depends on extent of overlap with the new role.
Such data although convenient and easy to obtain, has to be augmented from other sources—and through other assessment methods—for a complete picture to base the employee selection decision on.
Interested in learning more about Redeployment Assessment Process & Methods? You can download an editable PowerPoint on Restructuring: Redeployment Assessment Process & Methods here on the Flevy documents marketplace.
Want to Achieve Excellence in Business Transformation?
Gain the knowledge and develop the expertise to become an expert in Business Transformation. Our frameworks are based on the thought leadership of leading consulting firms, academics, and recognized subject matter experts. Click here for full details.
“If you don’t transform your company, you’re stuck.” – Ursula Burns, Chairperson and CEO of VEON; former Chairperson and CEO of Xerox
Business Transformation is the process of fundamentally changing the systems, processes, people, and technology across an entire organization, business unit, or corporate function with the intention of achieving significant improvements in Revenue Growth, Cost Reduction, and/or Customer Satisfaction.
Transformation is pervasive across industries, particularly during times of disruption, as we are witnessing now as a result of COVID-19. However, despite how common these large scale efforts are, research shows that about 75% of these initiatives fail.
Leverage our frameworks to increase your chances of a successful Transformation by following best practices and avoiding failure-causing “Transformation Traps.”
Learn about our Business Transformation Best Practice Frameworks here.
Do You Find Value in This Framework?
You can download in-depth presentations on this and hundreds of similar business frameworks from the FlevyPro Library. FlevyPro is trusted and utilized by 1000s of management consultants and corporate executives. Here’s what some have to say:
“My FlevyPro subscription provides me with the most popular frameworks and decks in demand in today’s market. They not only augment my existing consulting and coaching offerings and delivery, but also keep me abreast of the latest trends, inspire new products and service offerings for my practice, and educate me in a fraction of the time and money of other solutions. I strongly recommend FlevyPro to any consultant serious about success.”
– Bill Branson, Founder at Strategic Business Architects
“As a niche strategic consulting firm, Flevy and FlevyPro frameworks and documents are an on-going reference to help us structure our findings and recommendations to our clients as well as improve their clarity, strength, and visual power. For us, it is an invaluable resource to increase our impact and value.”
– David Coloma, Consulting Area Manager at Cynertia Consulting
“FlevyPro has been a brilliant resource for me, as an independent growth consultant, to access a vast knowledge bank of presentations to support my work with clients. In terms of RoI, the value I received from the very first presentation I downloaded paid for my subscription many times over! The quality of the decks available allows me to punch way above my weight – it’s like having the resources of a Big 4 consultancy at your fingertips at a microscopic fraction of the overhead.”
– Roderick Cameron, Founding Partner at SGFE Ltd
Business Transformation is a given in the lifecycle of organizations. If an organization or business desires to continue growing gainfully, it has to keep Restructuring and Innovating with time. Successful Restructuring can be achieved by pursuing a robust 4-phase approach. Each incremental phase paves the way for shaping the next phase:
- Strategic Analysis
- Structural Redesign
- Redeployment
- Renewal
Redeployment is the most critical phase in the Restructuring process. It presents an opportunity to progress towards strategically directed performance goals and establish the foundation for a new Organizational Culture.
Carrying out an efficacious Redeployment, however, necessitates navigating around the pitfalls that threaten the process. These snags include:
- Lack of detailed planning on how Redeployment will be handled
“If you fail to plan, you plan to fail” is an oft repeated adage that has wisdom based on experience of many failures throughout history. The Redeployment plan should be thoroughly discussed and developed at the Redesign stage, giving out details of all aspects of Redeployment.
- Restricted access to information approach
Organizational leadership often try to avoid sharing information due the fear of losing control. During the tumultuous phase of Redeployment, leadership should be communicating with the employees quite frequently to alleviate any concerns and build their trust.
- Failure in immediate and full disclosure of information
Timely and full disclosure of information is absolutely essential for the process to run smoothly.
A robust communications system has to be put in place for dissemination of timely information predominantly in the Redeployment phase as employee apprehensions are at the highest level in this stage.
You can learn more about the pitfalls during Redeployment here in the editable PowerPoint on Redeployment after Restructuring.
Redeployment, in order to be successful, has to go through 7 steps that need careful planning and execution with precise timing. These 7 steps include:
- Continuously maintaining a robust Communications Plan.
- Developing an employee assessment system based on the newly-defined business needs and goals.
- Creating a system of reviews and appeals.
- Deploying an internal placement group.
- Launching a severance plan for those who decide to leave the organization.
- Providing training to employees at all levels for them to be able to develop competencies required to assume the responsibilities in a transformed organization.
- Planning for the renewal phase following redeployment.
Let us delve a little deeper into this second step:
2. Develop an Employee Assessment System based on the newly defined business needs and goals.
The system should assess potential employees against required competencies for the position. A matrix should be created to serve as an assessment tool to structure the selectors’ thinking. Each competency should be assigned a weight and the cumulative score should be the sum of weighted scores of each competency. Input should be based on interviews with candidates, feedback from managers and supervisors. The matrix should be used as a tool only and selection decision should not be predetermined rather based on all aspects, i.e. qualitative as well as quantitative.
The selectors should be trained to ask targeted questions to assess competencies and document them properly. Assessment should be divided into 3 sections:
- Go/No-Go section to assess the candidates’ ability to meet the minimum requirements.
- Evaluation of each candidate against the competencies mentioned for each position.
- Document modification in decision due to absenteeism, affirmative action concerns, etc.
Interested in learning more about the Redeployment Steps? You can download an editable PowerPoint on Redeployment after Restructuring here on the Flevy documents marketplace.
Do You Find Value in This Framework?
You can download in-depth presentations on this and hundreds of similar business frameworks from the FlevyPro Library. FlevyPro is trusted and utilized by 1000s of management consultants and corporate executives. Here’s what some have to say:
“My FlevyPro subscription provides me with the most popular frameworks and decks in demand in today’s market. They not only augment my existing consulting and coaching offerings and delivery, but also keep me abreast of the latest trends, inspire new products and service offerings for my practice, and educate me in a fraction of the time and money of other solutions. I strongly recommend FlevyPro to any consultant serious about success.”
– Bill Branson, Founder at Strategic Business Architects
“As a niche strategic consulting firm, Flevy and FlevyPro frameworks and documents are an on-going reference to help us structure our findings and recommendations to our clients as well as improve their clarity, strength, and visual power. For us, it is an invaluable resource to increase our impact and value.”
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