Chronology of the 5 stages of restructuring
|
Step
|
Phase
|
Indicative duration
|
Key players
|
|---|---|---|---|
|
1
|
Diagnosis and awareness
|
2 to 4 weeks
|
Management, interim manager, CFO
|
|
2
|
Announcement and communication
|
2 to 4 weeks
|
Management, HR, CSE, communication
|
|
3
|
Deconstruction of the old model
|
1 to 3 months
|
Leadership, Managers, HR
|
|
4
|
Rebuilding the new model
|
3 to 6 months
|
Management, managers, operational
|
|
5
|
Integration and adjustment
|
3 to 12 months
|
The entire organization
|
Step 1: Diagnosis and awareness
The first stage is that of awakening. It is a question of objectively measuring the situation and validating the need for restructuring.
At the first warning signs, bring together decision-makers and managers of key departments for a comprehensive and unbiased diagnosis. Identify the problems: crisis situation, employee disengagement, decreased productivity, cash flow problems, lower sales, ineffective sales strategy.
This audit must cover all aspects: the strategic direction, the organizational structure, the operational, human and financial management. Identify dysfunctions and design a suitable restructuring plan with clearly defined objectives and resources.
It is strongly recommended to call on an interim manager, a specialized expert who has the necessary hindsight for an objective evaluation.
Step 2: Announcing the restructuring
This second step consists of communicating with all the stakeholders: managers, employees and external partners (customers, suppliers, service providers).
Anticipate the emotional impact. Restructuring can lead to difficult decisions: redundancies, job cuts, redeployment, disposals, mergers and acquisitions, closure of subsidiaries.
Transparently share your action plan and the reasons for this transformation. Build a strong, clear and inspiring vision for the teams. Give everyone the opportunity to express themselves in confidence about their fears and provide reassuring answers.
This is a decisive step: the success of the restructuring depends to a large extent on the involvement of all employees.
Step 3: Deconstructing the old model
This phase marks the concrete transition: old practices, ways of thinking and strategies that are deemed obsolete or ineffective must be abandoned.
It is a phase of rupture that can be a source of stress and loss of bearings. Close daily support for the teams is essential to allay fears and maintain commitment. Resistance to change is predictable at this stage — it needs to be anticipated and managed.
Step 4: Rebuilding the business
Then comes the implementation of the new organizational model. It must be deployed at all levels: management, reorganization of services, management mode, operational efficiency.
Ensure regular performance monitoring and careful evaluation of team engagement and well-being. Support each employee so that they can find their feet and adapt to the new ecosystem.
Step 5: Integration and adjustment
The final step is the gradual integration of the new model. Restructuring operations are generally spread over a long period. They do not end when the new model is implemented, but require a continuous adjustment phase.
During this period, take corrective action if the results do not meet the set objectives. Check out our article on managing a turnaround plan to delve deeper into this phase and avoid the 5 common mistakes of restructuring.
The legal framework for restructuring in France
Any restructuring involving job cuts is governed by strict legal obligations:
- Consultation of the CSE (Social and Economic Committee): the employer must inform and consult the staff representatives on the economic reasons, the measures envisaged and their consequences
- Information from the DREETS (Regional Directorate for the Economy, Employment, Labour and Solidarity): mandatory notification in the event of collective redundancies for economic reasons
- Employment Safeguard Plan (PSE): mandatory when a company with more than 50 employees makes 10 or more redundancies over 30 days. The PSE must include redeployment, training and support measures
- Obligation to redeploy : the employer must seek all possibilities for internal redeployment before any dismissal
- Procedural deadlines : the deadlines for consulting the CSE vary according to the number of dismissals (2 months for 10-99 dismissals, 3 months for 100-249, 4 months for 250 and more)
The HR department plays a central role in meeting these obligations and in providing human support for the restructuring.
An interim manager to steer your restructuring
Restructuring is one of the most complex exercises for a management. The lack of perspective and emotional involvement of the business leader can be an obstacle to success. An interim manager brings the objectivity, expertise and methodology necessary to steer each step with rigor.
Wayden supports companies of all sizes in their restructuring and transformation projects. For more information, see Guide W — The Practical Guide to Restructuring.
Is your company going through a critical period?
Frequently asked questions
What are the steps of a corporate restructuring?
The restructuring follows five main stages: diagnosis and awareness, announcement and communication with the teams, deconstruction of the old model, reconstruction of the new organizational model, and gradual integration with adjustments.
What are the legal obligations when restructuring?
The employer must consult the CSE, inform the DREETS in the event of collective redundancies, set up a PSE if more than 10 redundancies over 30 days in a company with more than 50 employees, and comply with the redeployment obligations.
How long does a restructuring take?
The duration depends on the extent of the transformation. The diagnostic phase typically takes 2-4 weeks, planning and reporting 1-2 months, and full implementation can take 6-18 months.
Why call on an interim manager?
An interim manager brings the necessary hindsight, objectivity and expertise. His outside perspective allows for an impartial diagnosis, and his experience in complex environments guarantees controlled execution at every stage.
