Our client had a successful, growing business. His problem was that he knew his organization was not structured to support the current size of his business, much less the growth he anticipated. He knew he could continue down the same path, avoid change, and be moderately successful. Or he could take time to reassess and restructure to maximize his company’s success. He decided to hire Virtual CFOs to help him reassess and restructure.
Our client’s Virtual CFO began the process by interviewing the client’s key personnel. This provided not only an understanding of the company’s business, but also an assessment of each key employee’s skills, business acumen, knowledge, and potential. Combining this information with the client’s plans for the future, we were able to develop a plan for reorganization.
The first step in development of the plan was to envision the most efficient functional structure for the company. In this case, it involved eliminating one department, combining two others, and making three key changes to process flow. These changes produced a much more streamlined and efficient process, one that could handle rapidly increasing volume with limited increases in personnel. It also created a shorter lead-time to fill customer orders.
The second step in the plan was to identify the required capabilities for each department or function head, given the company’s anticipated growth. All key employees’ capabilities and potential were assessed and compared to the capabilities needed. Recommendations were made that involved moving people to different departments, promoting people with unrealized potential, hiring department heads where the requisite talent was not available in the organization, and terminating people who lacked the talent and/or positive attitude to contribute to the company’s success.
The next step was development of an implementation plan. The timetable and order of events were key to the plan’s success. We coordinated and conducted a series of meetings with all employees, departments and individuals to communicate the need and process for change. Organizational and personnel changes were then implemented.
In the final step, during the next several months we checked in on our client periodically to see that everything was working as it should. Our client went through the effort to change. His profit growth now exceeds his revenue growth.