ST LAWRENCE UNIVERSITY, KAMPALA

NAME: ELWEU MICHAEL

REG. NO. BMRMU/23D/U/J0006

FACAULTY: INFORMATION SCIENCE AND TECHNOLOGY

COURSE UNIT: TRANSFORMATION MODELLING & EMPOWERMENT

LECTURER/ FACILITATOR: DR KALULE-KAGGWA DANIEL

SEMESTER: 1

YEAR: 1

COURSE WORK (MARCH 2023)

Jaguar Commercial Complex has been undergoing a restructuring programme that aimed at
levelling it to first rate company operating at optimum scale.

Discuss the likely process and searched skills that would see it achieve the intended goals.

Your presentation must not exceed four pages less the cover page and spaced at 1.5

Delivery: 3rd April 2023 by NOON

According to Miles (2023), restructuring is defined as an act of changing the business model of
an organization to transform it for the better. These changes can be legal, operational processes,
ownership or any form that reorganizes it to become profitable. This entire process can be either
internal or external which can result into either upsizing or downsizing employees, change in
staffing requirements etc. Restructuring usually take place for various reasons but commonly
when a company is struggling to survive a critical financial set back or wants to maximize
profits.

Alexandra Twin (May 3rd, 2022) also looked at restructuring as an action taken by a company
to significantly modify its financial and operational aspects usually when the business is facing
financial pressures and this involves modifying the debt, operations etc. as a way of limiting
financial harm and improving the business. Restructuring when handled well should lead to
improvements but can also lead to decline or total closure when poorly conducted. There are
numerous reasons why companies restructure which include; deteriorating financial
fundamentals, poor earnings performance, lackluster revenue from sales, excessive debts and the
company is no longer competitive or too much competition exists in the industry, new methods
of operation, buyouts, change in business environment like during Covid-19 and change in
direction of production etc. Medaline Miles in his book also laid down different types of
restructuring as mergers and acquisition, legal, financial, repositioning, cost-reduction,
turnaround, spin-off and divestment restructuring.

Restructuring is a step-by-step program which should be conducted carefully while following the
processes as below;

Planning phase.
This is the initial stage in which the entire process is looked into and strategies laid down and
costed while putting into consideration the following indicators;

SMART (Specific, Measurable, Accurate, Realistic and Time-bound) objectives. Restructuring

only makes sense when profitability and market position are improved. This means the business
objectives should be ambitious, realistic, time bound, specific and measurable in order to achieve
the intended goals. Planning phase involves the following:
- Internal Communication. This builds a team and generates internal support from the
organization workers. Poor or incorrect communication of the process causes chaos.
- Project Team Creation. The team should include all key people who are required to make
the project successful.
- Setting specific roles and responsibilities. Shared roles and duties doesn’t give good results
in restructuring. There should specific duties to team members for instance, Project
coordinator.
- Sourcing for support from Top Management. Without involvement of Top Management,
the process will never succeed due to lack of funds to facilitate the budget.
- Project management tools and procedures in place. Ensure that all necessary and required
tools to be used in the process are in place.

Implementation Test Phase. During this phase, the organization conducts a test on a small unit
to validate or ascertain the likely outcome of the entire restructuring process on the organization.
Small tests are done to avoid big the risks of big costs and mistakes affecting the whole
organization.

Measuring and Analysis of Test Phase. This is where results against SMART objectives are
measured and corrections of initial plans are made where necessary. It is an important part of
organizational restructuring process in its implementation phase. If a test is not successful, the
whole organizational restructuring process is in danger.

Rollout Phase. In this phase, the plans are implemented as laid down. Results are measured
against SMART objectives and implementation corrections are made. Mistakes are expected in
large implementation projects and therefore, companies are to be ready to make the necessary
corrections as many times as needed.

According to Matt Gavin in his book: A Guide to Advancing Your Career with Essential
Business Skills(23rd May, 2019), there are a number of skills necessary for an organization to
succeed. These range from individual to Organizational as discussed below;

An Understanding of Economics. In addition to an in-depth knowledge of pricing strategy and

market demand, studying economics can provide a toolkit for key decision-making at your
company. For Nicholas Grecco, a former Credentials of Readiness (CORe) participant who
works as an educator and health administrator, the lessons learned in Economics for managers
instrumentally helped his organization to invest in Solar Energy.

Data Analysis. Research shows that an increasing share of firms including Microsoft, Uber etc
use analytics to improve their growth and improve their services and operations. According to
LinkedIn, analytical reasoning is one of the sought-after hard skills in today’s job market.
Knowledge of dataset summaries, recognize trends and test hypothesis can improve an analytical
framework for approaching complex business problems that helps one to make informed
decisions that benefit the firm.

Financial Accounting Skills. This can be beneficial to your career though you’re not in a
number’s-focused role. Concepts like cash-flow and profitability are vital for understanding your
organization’s performance and potential, while understanding how to read and interpret a
balance sheet is critical financial results. Pankaj Prashant, an engineer who took CORe, says the
principles he learned in Financial Accounting helped him build on his technical background and
advance his career.

Negotiation Skills. In a report by the World Economic Forum, negotiation was identified as one
of the top 10 people skills needed to thrive in the future workforce. Honing your deal-making
skills can not only help secure value for your company at the bargaining table but also for
yourself when advocating for your higher starting salary. According to HBS Professor Mike
Wheeler, there is no one-size-fits-all approach to crafting negotiation strategy but the key is to be
open to improvisation and plan to think on your feet. To succeed, you must be agile, that is, to
flex yourself so that you deploy different skills depending on the situation and whom you are
dealing with.

Business Management Skills. Strong managerial skills are closely linked to organizational
performance. A study by Gallup found that managers account for 70 percent of variance in
employee engagement, emphasizing on the need for companies to develop leaders who drive
team productivity and morale. All level leaders, it’s valuable to know how to lead meetings and
communicate organizational change.

Leadership Skills. This is vital in workplaces in that it is more focused on the people and vision
that guide change unlike Management which is more centred on implementing processes. This
skill is can help someone understand how to bring the vision to life and position the team for
success.

Effective Communication. In any business setting, professionals rely on communication to

coordinate efforts and accomplish organizational goals. Along with developing your skills, a
large contributor to success in understanding and adapting to other’s communication styles. On
the other hand, this skill is key in building rapport with employees or clients thereby creating a
bond between parties.

Emotional intelligence. This refers to ability to understand your emotions and recognize and
influence those of others. It is an essential business skill which has been proven by research to be
the leading indicator of performance in the workplace. According to a study by TallentSmart,
90% of top performers have a high degree of this skill. This can be divided into four concepts
viz; self-awareness, self-management, social awareness and relationship management.

Decision-making Skills. This is highly needed by business managers and all professionals to
navigate complex work challenges. Determining how to allocate resources, which employees
comprise a team and how to implement a new organizational initiatives are all decisions that
need careful considerations

Networking. This involves creating a channel or group of vital people. Whether you want ideas
or advise on a specific challenge or you are preparing for a career change, the people who make
up your professional network can be valuable resources. To make most of your network, be open
to opportunities to step out of your comfort zone and build new relationships.

In conclusion, when a company restructures internally; the operations, processes, departments or

ownership may change, enabling the business to become integrated and profitable but also on the
other hand, this can be tumultuous, painful process as the internal and external structure of the
company is adjusted and jobs are cut. Restructuring costs can add up quickly for things like
reducing or eliminating product or service lines, cancelling contracts, eliminating divisions,
writing off assets, closing facilities and relocating employees. Usually when companies
restructure, they lay off some of its employees. This is typically because a restructuring involves
downsizing which can include closing some groups, merging others and generally looking to be
efficient and cost-effective.