Enterprise restructuring - What opportunities and challenges in 2023?
In the process of development, to achieve strong growth, businesses often undergo a comprehensive transformation from strategy to operations. In the context of a challenging business environment in 2023-2024, businesses will face pressure to optimize operational efficiency and reduce costs to compete in the fierce market.
According to PwC's "26th Annual Global CEOs - Key Issues for CEOs in Vietnam", 69% of corporate CEOs in Asia-Pacific believe that global economic growth demand will decrease in the next 12 months. Additionally, 53% of CEOs think their current business models will no longer exist within the next decade, 14% higher than the global survey results. This shows that businesses in Vietnam need to transform their business activities to survive and develop.
The post-pandemic context with the disruption of the global supply chain and high inflation has slowed the recovery of the economy, causing strong pressure on cash flow and finance for businesses. Therefore, the requirements for corporate restructuring in this period will be significantly different from those of the past, including an increase in the frequency and scale of restructuring to many businesses from small to large.
Through working with partners, PwC has noticed many common problems in the organizational structure and operation of the business. These issues include the lack of a clear and detailed business strategy, the lack of connection between the organizational structure and the strategic goals and directions. In addition, the shortcoming also lies in the fact that the company's functions and tasks have not been properly defined and allocated, the interaction and coordination mechanism is not clear, leading to the failure to optimize resources and costs. . Many businesses still do not have a clear decentralization mechanism, making decisions centralized at the highest level in the company.
According to Mr. Nguyen Anh Hung, Senior Director of Human Resources at PNJ, a human resource management strategy lasting 3-5 years will no longer be effective when market fluctuations are associated with changes in operational strategies. organization's. Considering the operation of the business as the cultivation of trees, in a harsh environment, the enterprise can "pruning and pruning" (strategic streamlining), but must keep the "roots" (people), “strengthen the trunk” (process and tools) to be able to stand and revive after any storm.
Corporate restructuring is not only a challenge, but also an opportunity for businesses to adapt and thrive in a volatile market. By reviewing and optimizing strategy, organizational structure, processes, and tools, businesses can achieve agility, increase productivity, and reduce risk. It is important to make decisions based on sound information and data and to use modern technology to support the restructuring process.
Given the challenges and opportunities in 2023, businesses should consider using operational process management software to restructure faster and more efficiently in the long run. Operational process management software helps businesses define and optimize processes, increasing flexibility and interoperability across parts of the organization. It also helps businesses monitor and evaluate operational performance, providing the basis for informed data-driven decision-making. Using operational process management software will help businesses quickly adapt to the changing business environment and create sustainable competition.
In general, corporate restructuring in 2023 is not only a requirement but also an opportunity for businesses to survive and develop. Businesses need to face business challenges and take advantage of new opportunities to adapt and stay on the path to success. By adapting to the changing business environment, using modern management tools, and focusing on human resources, businesses can overcome challenges and succeed in a competitive marketplace.