6 May 2020
In such turbulent times, we have seen people taking a step back, reorganizing their life, getting their place in order, emptying the basement full of useless objects, planning on a diet, getting rid of wrongful habits. The same applies to companies. Some even realised (finally) the benefits of working remotely, some others understood that their management was outdated and needed a sharp revamp. This coup de théâtre brings onto the table the necessity for restructuring one’s business.
Whether you run a technology based company with a high potential for market disruption, or a dynamic trading activity, or whether you built or inherited a long tradition family owned business, repositioning your business is tremendously important to ease management and get ready for the next crisis to come.
This has proven to be particularly true with traditional companies that went through a reorganisation of their activities, once held in various jurisdictions internationally. Monaco offers various advantages for such moves, especially when facing a tough economic cycle, considering its unprecedented and unrivalled economic, political and social stability.
Organisational Restructuring : modus operandi
Assessing the situation you are in seems to be the obvious first piece, although not the easiest. It requires time and objectivity.
Mapping your business operations, including trading, HR, marketing services, is a good way to realise where the complexity lies in the structure. In the end, the KISS method – keep it short and simple – could be the motto of any company.
Identify the flaws that cause a loss, may it be a loss of quality in the manufacturing process, a loss of trust with customers, a loss of time in the supply chain, or any other tangible or intangible losses.
Address the issues with the right people from your company or experts in this field hired for the purpose of reorganising the activities.
In this process, do not forget that spending more is not always a problem. Qualitative operations may require a high standard environment. This is the case with the Principality of Monaco, for instance, which offers a safe context at a certain price.
Implement solutions, one at a time. On an administrative point of view, this can start with closing foreign units or reducing the size of the company (i.e. changing its legal structure), which are quick and fundamentals changes at all levels.
Finally, new changes demand measurement. Thanks to regular analysis, it is easier to track the performance and reassess one’s business model from time to time.
Defying the next storm with the safest ship
The whole purpose is to keep on going and make your business flourish, while getting ready for the next crisis, building a strong ship to hit the next big wave. After all, doing business means taking risks and, as Saint Thomas Aquinas put it, “if the highest aim of a captain were to preserve his ship, he would keep it in port forever“. That should not prevent the captain from ensuring his ship is safe.