How do you use trends and benchmarks in restructuring?

Trends: It's important to note that not all trends will affect all businesses similarly. For example, a trend towards eco-friendly products might have a bigger impact on a company that already emphasizes sustainability than on one that doesn't. Benchmarks: Sometimes, benchmarks can be industry-specific. For example, metrics like Monthly Active Users (MAU) or Churn Rate are more relevant in the software industry than in traditional manufacturing.

Methods and Tools: These frameworks can help you systematically look at different aspects of your business and industry. For example, SWOT focuses on internal Strengths and Weaknesses and external Opportunities and Threats. PESTEL looks at external factors like Political, Economic, Social, Technological, Environmental, and Legal influences on your business. Data Sources: It's crucial to cross-reference data from multiple sources for a more accurate analysis. For instance, government data might provide regulatory insights, while customer surveys could give you direct feedback on what the market wants.

If you’re going to rely on trend analysis to guide your restructure or control change event, you will need a top down framework. For me, it always starts with global macro trends, which funnel down into cyclical, country and industry based trends and thematics and an analysis of how technology is likely to support versus disrupt at an industry and micro (company) level. It’s a top down approach with a question at the end. And that questions is: ‘Does the proposed restructure align with the relevant trends I’m seeing and allow me to navigate around the headwinds and catch long lasting tailwinds? The answer will instruct your strategy.

Blockbuster Video failed to adapt to the growing trend of online streaming, whereas Netflix used this trend to its advantage. Netflix also benchmarked its customer service and streaming quality against competitors, continually finding ways to improve and stay ahead. They developed a restructuring plan that shifted focus from DVD rentals to streaming, leveraging their technological capabilities. Data-Driven Decision-Making: Your trends and benchmarks should be backed by solid data, not just gut feelings. Risk Assessment: When restructuring, it's also crucial to conduct a risk assessment, evaluating how changes could negatively affect the existing business operations and customer relationships.

Kodak failed to adapt to the digital photography trend. However, Adobe successfully restructured by embracing digital trends, offering software solutions for digital photo editing, and moving from a one-time purchase to a subscription-based model. Flexibility and Agility: Being able to quickly pivot in response to new information is invaluable in today's fast-paced business environment. Employee Morale and Retention: Another aspect to consider is the impact on employees. A well-executed restructuring can boost employee morale if it leads to a more competitive and innovative company. Still, managing this change carefully is essential to avoid the opposite effect.

Learning from successful and failed restructuring is one way to ensure measurement is in line with comparable industry standards

Yahoo failed to restructure effectively despite seeing the trends in mobile computing and social networking. They struggled with implementing changes that resonated with both employees and the market, which eventually led to their decline. Data Overload: With so much information available, it's easy to get bogged down and struggle to decide. Cultural Resistance: Often, organizational culture can resist change, which can be a significant hurdle in restructuring based on trends and benchmarks.