The Effective Ways to Correct the Organization Failure

To survive in the information age, the organizations have to compete with each other. Some of the organizations adopted change management whereas the others change management, conduct training, or employ new strategies. With this competitive environment, some organizations can survive, yet some others almost get bankruptcy. To recover from this bad situation, some effective strategies have been suggested:

A. Restructuring: It is a strategy through which the organizations change their set of businesses or their financial structures. The organizations change both internal and external environments. There are three restructuring strategies that the organizations can use”

1. Downsizing: It is a reduction in the number of the organizations’ employees, and, sometimes, in the number of its operating units, but it may or may not change the the composition of business in the organizations’ portfolio. The ways of reduction can be lay off, or attrition (early retirement, resignation or death).

2. Downscoping:  It refers to divestiture, spin-off, or some other means of eliminating businesses that are unrelated to the organizations’ core businesses. Commonly, downscoping is described as a set of actions that causes the organizations strategically focus on their core businesses.

3. Leveraged buyout: It refers to a restructuring strategy whereby a party buys all the organization’s assets in order to take the organization private.   

B. Reengineering: It began as a private sector technique to help organizations fundamentally rearrange how they can do their work in order to dramatically improve customer service, cut operational costs, and become world-class competitors.

1. Rethink: It is related to thinking of the new ways for improving the organization rather than depending on the old ways of managing.

2. Redo: It is the way that is used to manage an organization's core business processes with the aim of achieving dramatic improvements in critical performance measures, such as cost, quality, service, and speed

3. Retool: It is related to the resources used to create products and services that meet the needs of particular customers or markets. As a structured ordering of work steps across time and place, a business process can be decomposed into specific activities, measured, modeled, and improved.

4. Redesign: It is related to the way that work is done to better support the organization's mission and reduce costs. It starts with a high-level assessment of the organization's mission, strategic goals, and customer needs.

Sam Aun (Andy)