Over time human beings develop a sense of entitlement which breeds incompetence. They don’t bring positive significance and end not only being a waste of space but an obstruction. So there are the value adders and parasites. So this “disorganization” which makes the entrepreneurs think they have a company yet they only have people who are full of themselves not actually don’t have doers/workers is what calls for company restructuring. This is a lifelong endeavor the same you update your IT gadgets is same way you have to update your company/business. The company is in existence but for some reason or absence of reason owners or management lose sight of the very mission or vision for the existence of the company.
Below are some highlights that lead to corporate failure:
- Negative operating cash flows
- Inability to pay suppliers when due
- Operating losses
- Borrowing facilities not agreed
- Loss of key staff/ customers
- Technology changes
- Legislative changes
- Non-compliance with regulations
- CEO and Chairman
- Lack of board or passive one
- No budgets or budgetary control
- No cash flow plans
- No costing systems
- Poor response to Change
We re-organize the company to an optimum structure that is devoid of waste, inefficiency through writing working job descriptions supported by a practical organogram, process flow alignment, having a strategy, having controls, board must participate, avoid one-man rule, management in depth, keep informed of and respond to change, customer is King, don’t misuse computers, don’t manipulate accounts, meet employees’ needs