HDA

Managerial Group Facilitation to Drive a Key Restructuring Project - International Manufacturer

Background

The organisation had made a strategic decision (linked to key savings and customer service rationalisation objectives) to restructure an entire division, comprising four subsidiary companies based at three sales/distribution/technical service facilities, and one manufacturing facility. Operational plans were in place to physically relocate two sites to a third existing site, while the fourth site would be restructured as a lean manufacturing ‘’best in class’’ operation focused exclusively on the UK market, with a proportion of its capacity shifted offshore. The organisation was given 9 months in which to effect the restructuring, with focus on the following objectives:

• Achieve an agreed IRR for the project

• Achieve target net operational savings pa, in addition to headcount savings

• Do not lose existing business as a consequence of consolidation

• Minimise losses of key managers and employees

• Achieve operational synergies

• Restructure asap, subject to budget approval and planning permission

• Ensure facilities and office/laboratory design support a seamless process, and provide additional consideration for potential acquisitions

• Communicate openly and inclusively

• Outsource where sensible

The restructuring had implications at all levels across the organisation, including:

• Significant functional and role changes, including significant product / customer / technical service training needs

• Likelihood of future role redundancies as new roles were developed and existing ones consolidated, (in the context of retaining all key staff in the immediate future)

• Relocation of the majority of staff, (including senior managers)

• Facility changes in respect of staff not expected to move

• Cultural changes, given that teams from very different organisations (including recent acquisitions) would be expected to come together, and work in new ways

HDA Intervention

HDA brought together the entire divisional management team (40 directors, managers, team leaders and project leaders), in a powerful group coaching process to engage ‘’hearts and minds’’ around the task a hand, and to generate areas of agreement and disagreement around how key objectives of the project would be achieved.

(Bearing in mind that a significant proportion of the team had personal misgivings about the restructuring, both from business and personal perspectives).

The Executive Committee initially had misgivings about bringing together a large group, given a good deal of concern about potential for dysfunctional disagreement on ‘’sticker’’ issues. HDA assured the Executive Committee that bringing the team together would be a powerful method of engaging and motivating the entire team from the outset.

The process comprised group facilitation, individual group break-outs, and feedback to the group and executive team, moving quickly from an analysis of concerns, constraints and risks, to a broad project planning structure which took into account both individual and organisational interests – with focus on key agreed objectives.

Focus was placed on ‘’how’’ the team would arrive at project structures and objectives, and on ‘’what’’ the team would then put into action, to ensure team buy in for the process, despite any personal misgivings about the organisation’s strategy.

HDA introduced the team to the R.A.C.I. approach to managing organisational restructuring projects, and concluded the process with identifying eight key project streams, (eg. internal communication, HR, facilities, etc) together with project owners and cross functional support teams.

HDA then worked closely with selected teams and with the Executive Committee to move people-related project plans along, including playing devil’s advocate on a number of key issues related to the business’s culture, eg. the business had a history of incentivising people with financial incentives in the first instance, vs focusing on role management/growth, career development, internal communication, etc as a strategy for ensuring key skills retention and team motivation.

Results

Participants reported:

• Being very satisfied with the HDA-facilitated process during which key issues for the organisation were agreed in an open and non-threatening environment, and during which clear project plan frameworks were quickly arrived at by the team

• Trusting the organisation, despite continued misgivings in cases about ‘’what’s in it for me in the future?’’ once the business is consolidated

• Having a clear view of expectations for themselves and their teams

• Having appreciated the opportunity to come together as a team to agree issues and actions with senior colleagues whom many had never met before, but with whom they would need to work more closely in the future

The organisation is currently on track to conclude its restructuring process within budget, and project plans are largely on track. The management team is currently progressing all project streams, and HDA is regularly updated on progress.

Organisational communication objectives to date have been met, and support elements are in place to ensure that customer needs are met during the restructuring/consolidation period, while key skills are maintained intact prior to the final consolidation process. HDA is supporting the organisation with specific individual needs.

For more information on any of the above or to understand how HDA can add value to your organisation,

Please contact Melissa Nealon, Client Partner & Project Manager – man@hda.co.uk / 0207 484 5065