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Buy or Rent? Restructure edition

pool-houseQuick! Your powers are needed!

Whenever re-structure time comes around at an organisation, it can be pretty tough on the team. But it’s usually even tougher on HR.

Luckily, there are tools that can help you manage and plan the restructure, like our enterprise workforce modelling tool, Planning@Work.

The problem is that most HR software takes time to implement. You’ve got to get budget, evaluate your options and ultimately get someone (internal or external) to setup the tools for you.

So is it really worth the effort?

Many of our customers have struggled with this question before taking the plunge, and ultimately, it depends on your situation. Sometimes, you’ be better off renting tools or enlisting specialist contractors to help you manage the restructure rather than buying a system to use yourself.

Here’s 3 questions to ask to help you work out the best option for your organisation:

housesWill you use the restructure tool again?

If you regularly need to change the organisational structure of your business (eg. annually), you really need an ongoing tool that you can understand and utilise internally as required.

It just wouldn’t make sense to keep hiring software/consultants/assistants to manage the process, as there are added costs and complexities in doing so.

On the other hand, if your organisation is fairly stable, and the restructure is a one-off, you really need to assess the other capabilities of the tool you’re looking at to see if it’s worthwhile.

For example, Planning@Work is fundamentally an org charting tool, so most of our customers use it on an ongoing basis to visualise and report HR data and reporting structures.

If these other uses are valuable to you, factor this into your decision.

 

modern-houseWhat is the resource cost of the restructure?

Any technology, process or resource needs to provide a good return on investment to be worth consideration.

When you’re looking at managing a restructure, you’ll need to weigh up the:

  • Time and resource cost of preparing restructure hierarchy reports
  • Time and resource cost of sharing reports
  • Time spent manipulating and cleaning data
  • Restructure implementation time and costs

From there, weigh up the cost of your restructure software against the savings you can make. 

One key point – you can’t completely eliminate some of the above time and resource costs listed with software alone.

For example, Planning@Work is great for cleaning your data, preparing and sharing hierarchy, budget and span of control reports, but it can’t have the conversations with line managers and affected employees, prepare new contracts or offboard redundant staff. Other tools, like HROnboard, can assist in this regard, but there will always be a human element involved.

If you’ll end up with a positive ROI after buying the software, then it’s really a no-brainer. If not, rental or consultancy services may be more appropriate.

 

restructured-houseWhen does the restructure need to take place?

Software takes time to implement. Typically, you’ll need to:

  • Assess your options
  • Get budget approved
  • Select a tool
  • Get final budget approval
  • Implement the software
  • Go through an internal change management process if necessary

When you need to restructure the organisation within the month, you may be hard-pressed to get through this process in time.

This is when rental models and consultants can be a quick fix – albeit usually with a higher price tag if you’re going to engage them repeatedly.

It’s worth noting that cloud software will almost always be easier to implement than on-premises software, with the no need for your internal IT team to set it up for you.

 

If you’re still not sure which option is best, it’s understandable. It’s probably because every organisation and restructure is subtly different. There’s rarely an easy option.

Planning@Work is available for 12 month contracts or for specific projects, and our consultants are very experienced at using the tool for restructures if you lack the technical expertise in house.

Most importantly, we’ve helped countless organisations in your situation. Get in touch and we might be able to give you that one bit of advice that turns your restructure nightmare into a (relatively) stress-free project.

You can contact the Navigo restructures team at info@navigo.com.au

 

 

about the author
Peter

Peter is Navigo's founder and Managing Director. Peter is passionate about building and running businesses, finding solutions to business process problems and new trends in HR Technology.