Inventory Management Inventory management is the planning and controlling of inventories in order to meet the competitive priorities of the organization according to the textbook. This type of management affects all managers of the business.
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Bad design of processes, Marketing budgets allocated ineffectively. As large organisations tend to grow in an uncontrolled way, such cost cuts may help. Nevertheless, simple cost-cutting exercises may jeopardize the long-term market position of companies affected by such restructuring.
It is much more difficult to increase profit by growing revenues, gross margin and through cost optimizing, all at the same time. Such restructuring process is very complex, time consuming and often requires top management to get out of its comfort zone and to apply strategic thinking. Some of the transformations have just one goal for top management: It is false, but usually minor, scale restructuring.
The flow of internal communication should be from top to bottom of the organisation, but also from the opposite direction. We do not realise how much the middle and lower layers of each organisation know about how to make positive changes to their organisations and impact the overall process of organisational restructuring.
Every employee has certain psychological limitations, own comfort zone, old habits, limiting beliefs, etc. During restructuring process, employees and managers go through the process presented in Figure 1 below.
It can be achieved through proper communication of expected changes, supported by trust-building corporate culture.
Corporate obstacles Many corporations are never fully ready for deep, advanced forms of organisational restructuring.
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That is why many of them are not successful. We do not live in an ideal world and there is gain without pain or mistakes.
However, realising the elements that have to be fixed to make any restructuring successful may help managers prepare better. They are presented in Figure 2 below. There are organisational restructuring efforts with short implementation times, and which are extended even for years.
The basic steps of the restructuring process are presented in Figure 3 below. Restructuring process as a cycle. In fact, it is not a process with a predetermined end, but a stream of continuous cycles of improvements, as presented in Figure 4 below. Organisational restructuring as a process of constant improvements.
The business objectives should be ambitious, but realistic, time bound, specific and clearly measured. Project management tools and procedures in place Project management tools should be used, especially in complex projects.
A company can use existing procedures or create new ones. Test phase for one country, area, division, function, head office, etc. Small-scale tests are needed to avoid a risk of big and costly mistakes affecting the whole organisation.
If a test is not successful, the whole organisational restructuring is in danger. Companies should be ready to make the necessary corrections, as many times as needed. Typical mistakes in planning and implementation of the organisational restructuring process Some project objectives do not meet SMART criteria and results of restructuring are not fully measured and analysed properly.
Insufficient internal communication destabilises the organisation too much during the process. Limited co-ownership of the project at all organisational levels negatively affects the implementation.
In the worst case scenario restructuring is tactical, with vague objectives, planned at top level only, without collecting feedback from all levels of the organisation, and with diluted responsibility. A great recipe for a total failure!
It can serve as a perfect example and inspiration for numerous organisational restructuring processes implemented in its year history.
From business units to category management Nike started as a company selling footwear for runners. Nike quickly realised that its consumers need specialised apparel and equipment to practice their sports, so the two business units were added to the product portfolio.Find Newberg, Oregon International Business Development Manager jobs and career resources on Monster.
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