The best time for Organizational restructuring

President of The Institute of International Management

“The best time for Organizational restructuring is when company is growing“

Last weekend, Companiesin Ho Chi Minh City had a workshop, sharing around the theme: “Organizational Restructuring”. Attending the workshop, there were 4 famous speakers: Nguyen Thanh Tan – President of Institute of International Management and CEO of BrainMark, Mr. Ma Thanh Danh – Deputy General Director of KDC, Ms. Thai Van Linh – Director VinaCapital Fund Management& Operations and Ms. Le Thi Thanh Lam – Deputy General Director of Saigon Food

Speakers of the workshop

The question for the workshop’s speakers is: “When do you need to restructure your business, how do you restructure, and how do you implement it?”

According to Nguyen Thanh Tan, President of the International Management Institute, Deputy General Director of Business Management Group (BMG) and Strategic Director of BrainMark: There is no specific formula for organizational structure, and there is also no optimal structure as welll, each structure has its own advantages and disadvantages. Restructuring the company is best when it is growing because after growing  will usually be thedownturn of growth, however, few people do this, people often ‘sleep on the victory’.

From the success of BrainMark, successfully consulting  for Enterprise Restructuring, Master Nguyen Thanh Tan said that he is now continuing restructuring consultancy for many family groups, each group has organizational structure – culture different with others. For example, the two companies have two different manpower strategies:

The first company is rarely to recruit managers from external resources, but giving away the opportunity for internal employees in the company, which makes the company employees highly engaged and loyal to the company. This also means imposed great burden and difficult changes on the company. From the beginning, new employees have been molded the rules “the longer working, the higher getting promoted”.

The second company is more dramatic, Company  implements the policy of  keeping deputy management position and transfering management position, each leadership position always accompanied by two deputies who directly report to the highest management levels, Managers are recruited from external resources,  often after two years, managers  will be changed at the time there is no use for them anymore. With continuous updates from new people, the company develops very well

However, any business owner needs to shape the structure of his company in mind, whether it is a company of 1 person  or 1,000 people. For one-person company, we do not need to show in writing or standards, but on a scale of several hundred or more that will need to do. Finding the right structure for the business is the activity throughout  the entrepreneur’s life.

The workshop was attended by more than 50 corporate leaders

He also added “When deciding to restructure a company, we also need to look at the business reality in order to decide whether to keep or not to keep it.” I asked the chairman: Why did the company dismiss the deputy director right before 2 weeks when company implement the restructuring? The Chairman replied that a year ago, I had arranged a schedule for him  to leave at that time.

The reason for this decision is, according to the company Chairman: The Deputy Director is an expert in personnel management, working for company  for several decades, difficult to change or accept the new. After restructuring, the company will integrate with a new management system that is completely inconsistent with the Deputy Director’s leadership style and operating philosophy, so he must leave. Otherwise, when newly acquired employees  come, working with him, they  will be cultural shocked. “

Speakers receive flowers and souvenirs from the workshop

Restructuring the company is best when it is growing because after growing it will usually be the downturn of growth, however, few people do this, people often ‘sleep on the victory’.

When you want to restructure, first, the management needs to sit down to determine the way in front you will untake. What does the BoDs really want? Prioritizing growth, expanding market shares, attracting more customers or profit? Second, human resources assessment for orgnaizational restructuring. In particular, a variety of factors such as KPI, job description, rules, management system should be changed. Once a good management system is in place, newcomers are rapidly to catch up, adjust, we no longer depend on the experience of the long time working employees. Coordination between departments – the inherent weaknesses of small and medium Vietnamese enterprises, will also be better.

On one occasion of consultingfor a large corporation in Vietnam, Mr. Tan said, I find this business a very good activity: each year, the Group Chairman will meet the staff who have resigned to see after retiring How they live and work.  There are so many people attending such meetings, because in their hearts they are proud of being the people of this company.

Mr. Nguyen Thanh Tan (2nd from left to right) – President  of Institute of International Management and CEO of BrainMark Company and guest

On hiring consultants, according to Mr. Tan, although  a consultant, but he advised businesses not to rapidly choose for them a consultant but screen carefully: “No one knows one company by oneself, so Do not listen to the advice completely. The outsiders just help to figure out barriers, providing possible solutions, ideas or discussions

Therefore, the leader of the business should be clever in finding the appropriate structure for each business strategy, the position of personnel so that each employee in the company can work and “fight”  together, improving competitive position in the market.

 – BrainMark team –