What Is IT Organization Restructuring?
Restructuring is a process that every company considers based on internal and external factors. The decision to change some of the processes can benefit a business or hurt other processes in the chain.
Outdated operations and changes in management are internal factors that may force you to restructure your organization.
External factors might be a result of government policies and competition.
IT organizational restructuring is what your business needs to resolve challenges that threaten your existence in business. However, the process comes with its own set of challenges.
What Challenges Will You Face as You Restructure Your IT Organization
Restructuring is not as smooth as it might seem. You must consider several factors before moving forward to make changes. Below are some of the challenges associated with restructuring an IT organization.
1. Increasing Efficiency Without Compromising Quality
More challenges occur when restructuring the operations of a business to hasten efficiency. It is easy to hurt the final product in production when some of the processes are new.
2. Legal Challenges
Based on your location, the government may have strict restrictions on some organizational processes. If you implement them blindly, then heavy penalties may apply.
3. Financial Constraints
New technology can be expensive for your organization. You need to look at the costs and rewards before you shift.
The financial burden is one of the most common reasons why companies shy away from implementing changes in operations.
4. Employees Resistance to Change
The leadership might have the best interests for the organization but the team below rejects a change. The system might be experiencing downtime from time to time hurting the organization. The affected employees may resist the change despite the effects.
What Benefits Can You Expect From Restructuring Your IT Organization?
1. Restructuring Will Help Your Business Save on Costs
You might think of switching all your operations to the cloud. The transition might have a high initial cost, but the improved security and remote access will help save a lot for the organization.
Timely backups and strong encryption will make sure your business stays afloat.
2. Improved Productivity Translating to Competitive Advantage
New technology brings new and better operations. Avoiding obsolete processes in production will translate to better products. Your organization can fetch more sales in the market with new and better products.
3. Your Business Utilizes New Technology and Makes Better Use of Talent
When your organization restructures, it uses new technologies that help automate and secure the systems. Organizations are moving to self-healing networks and are being managed in the cloud.
Having a good set of skills can make your organization grow faster. People who adapt to change fast and are able to communicate effectively
4. Businesses Can Merge and Sync Their Operations
Restructuring can be a result of bankruptcy or huge loans. When this happens, your organization may merge with another to share profits as a form of repayment.
Merging operations can be hard when every organization is using different processes. Restructuring helps your organizations merge and sync operations.
What’s the Best Way to Restructure an IT Organization for Maximum Productivity?
You must consider business continuity as one of the consideration factors for an effective shift. A series of steps are followed to ensure effective restructuring. Let’s outline them below.
1. Measuring Organizational Performance
Key tools that will help you measure your organizational performance are:
- Key performance indicators(KPI)
- Performance appraisals
- 360-degree feedback
- Management by objectives (MBO)
- Reward and recognition programs
Depending on the performance, you may consider restructuring. That way you can get better performance in your organization.
2. Be Prepared for the Shift
When adopting new operations, you might lose sensitive data. Virtual data rooms and other secure enterprise collaboration tools effectively store sensitive data.
You might need to secure the company registration, VAT and tax numbers, income statements, and balance sheets that are not lost in the process. A systematic approach will ensure document safety and only the right stakeholders are involved in the restructuring process.
3. Use Advanced and Smart Tools
The restructuring aims at improving efficiency before other factors come into play. You don’t want clients waiting for your products or services as that will make them opt to try out your competitors.
Integrating artificial and machine learning can help in the preparation and organization of essential information about the company. Restructuring processes become easier with AI automation, and repetitive processes are eliminated.
4. Review the New Rules
With current technology and government regulations on data protection, it is important to understand the rules on privacy before you start operating.
With cloud management, the users need to feel secure and trust the cloud service. Rules on data breaches and recovery of data should be well understood before using the services.
5. Remote Buyers Outreach
When the organization is operating in a new environment, services are more efficient. You need to strategize on a way to perform outreach to potential buyers in order to manage creditors and email clients.
AI tools can help your organization know potential customers. Based on analytics, you can promote your products to strategic customers.
Helping Employees Deal With Change in Organization
- Provide a compelling reason for every change: Employees might consider the changes implemented as less significant. After all, the organization is still in operation. You need to make them understand the impact of the change as opposed to the current operation.
- Keep employees updated on the changes: When restructuring your IT organization, new processes can be overwhelming to the employees. Keep training them on the new processes to avoid resistance to change.
- Reward acceptance: When you face resistance against organizational restructuring, reward employees who uphold the change. This will make others follow suit and be eager to learn new business operations.
Menark Technologies Is Your Partner in Business IT Services in Philadelphia, Wilmington & Midatlantic
Your organization requires fast operations while maintaining security and product quality. At Menark Technologies, we focus on making your organization reach its full potential.
Here are some of the services we offer:
- Complete IT Care
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Contact us today for solutions to your IT challenges and to learn more about our services.
Thanks to our colleagues at DataEcon in Dallas for their help with this content.