Creative restructuring
Abstract
In the context of liberalization of globalization of
economy, the changes required in the functioning
of corporates need to be vast. Corporate restructuring
has become an important means for achieving
such changes in India and elsewhere. The
restructuring paradigm of western international
management consultants (WIMCs) has come into
vogue among large Indian public and private
corporates. One major restructuring choice is
between the WIMC paradigm and a creative,
participatory, largely self-help mode of corporate
restructuring. Creative restructuring is illustrated
by three case studies. Another major restructuring
choice is between creative and non-creative modes.
Based on a study of 120 turnarounds from a
number of countries, 42 creative restructurings for
turnaround are contrasted with 47 non-creative
restructurings for turnaround along 14 categories
of turnaround action. The necessity of creative,
participatively improvised restructuring to institutionalize
adaptive capabilities and achieve quantum
leap in corporate excellence in a hyper-competitive
environment is highlighted. Several steps are
suggested for practitioners seeking effective creative
restructuring.
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