Does your company need a restructuring?
Before you answer, “No, we don’t need a restructuring”, let’s think about this. What is Restructuring? Yes, it can be a bankruptcy restructuring, both financially and operationally. But truly ALL BUSINESSES at one point or another need restructuring, or if you prefer, process refinement.
Think of a high growth company. Now at $25 million in revenue, can they use the same business processes that they used as a $5 million company? Or like the lab business we just finished, it was a $30 million company and now with reimbursement changes it is a $12 million company. Can they run the business the same way at $12 million as they did at $30 million?
Of course not.
We suggest that there are at least 5 areas that management needs to consider restructuring.
1. Revenue Cycle Management
The process of completing an order, billing and then collecting the receivable will absolutely change over time. Often different systems come together to produce a bill. In the lab business, for instance, there is a lab information system that receives information from the lab equipment and transmits certain data to the billing company.