When to Consider Restructuring

Most clients call us at the eleventh hour: Over promising and under-delivering has become an unfortunate but common occurrence. Shareholder-management conflict has raised its ugly head. Significant or prolonged sales downturns have resulted in a dramatic or prolonged decline in profitability.

Rapid growth has caused severe stress on staff and management; customer satisfaction is plunging and accounts are being depleted. Or, creditor fatigue has struck and accounting staff have become fearful of incoming telephone calls.

Restructuring need not be a last minute or last ditch effort. It can and should begin before matters get out of hand. Regardless of their cause, transitions tend to require more and different resources than the organization has available at that point in time. Restructuring makes the adjustments necessary for the organization to cope with the changes in its situation and environment. Starting restructuring earlier provides a longer window of time to facilitate the adjustment and revitalization process.

Signals that should trigger further investigation include two or more quarters of reduced profitability, decreasing customer retention rates, increasing staff turnover, ongoing management dissension, and/or cash flow shortages of any type.

The bottom line is, when intuition says “something doesn’t smell right” or “we need help”, the health of your company warrants a check-up. Newhouse Partners’ Foundation Assessment is a quick and focused way to determine if additional action is warranted, and if so, what actions are required, without the prerequisite of a major commitment.

To learn more about Newhouse Partners’ OrgScan Assessments, or our solutions and services for organizations like yours contact us at info@newhousepartners.com.