StrEdge calls for SMART restructuring of biz

In a climate of unprecedented economic challenges, restructuring of businesses, from public enterprises to SMEs is critical, said the leadership of StrEdge Group of Companies. 
In a press statement, StrEdge Group, which is a cluster of home-grown enterprises covering consultancy in processes, people, finance and technology, noted that business process reengineering (BPR), human resource restructuring, financial restructuring and automation are crucial not merely to support rebuilding the country but also from a long-term sustainability perspective. 

“Multi-dimensional restructuring is a prudent and a tested method to come out of the difficult circumstances the entire country is facing right now.  This will create results in national interest if all can adopt SMART methodologies, from entrepreneurs to government hierarchy,” StrEdge Advisory Group Director/CEO Sumedha Wijesekera noted in the press statement.

StrEdge, which brings hands-on experience restructuring multiple businesses from corporates to SMEs, believes that a proper analysis of the existing banking finance structures of a business cannot be undermined. 
“The rising finance costs and all the macroeconomic constraints coupled with prevailing uncertainties have warranted restructures from both the business perspective as well as that of the bankers’,” observed Wijesekera.  
From a business perspective, such restructuring would enable solutions for cash flow constraints, save bank interest cost, promote sustainable growth and more importantly, businesses to be future-ready to capture the market potential in the next upward curve of the economy, he said.

From the bank’s perspective, restructuring helps to offer better structures with effective monitoring to match the business requirements, prevent NPLs and build up strong and more profitable relationships by being able to act as an advisor in this setting.  

Furthermore, it is very important to revisit the costing of goods and services in any organisation in view of increased raw material prices, exchange rates, finance cost, loss of sales, diminishing margins and loss of capacity. Introductions of dynamic price mechanisms for each product and service channel of today’s businesses will give a lot of clarity for the leadership to manage them successfully. 

StrEdge Group, which has in-depth experience in BPR covering multiple industries, including both banks and non-banking financial institutions, believes that SMART restructuring would help organisations realign their processes with present and future demands, said StrEdge Group Director Janaka Epasinghe. The current demand to achieve more with less resources has triggered this as a need, he added.

“Eliminating waste, increasing the service levels, reduction in costs, increased visibility, internal and external customer satisfaction and future-readiness are few of the results that can be derived with this activity.  Furthermore, this will strengthen the sustainability of any organisation,” Epasinghe remarked.
The current economic constraints have taken a huge toll on the human resource, which is the heart of any organisation, compelling to revisit the HR pillar for sustainability and growth, observed Epasinghe, who noted that if organisations are not in a position to compensate with economic benefits, it’s always important to bring other interventions to maintain productivity.

“The biggest bonus here is that even the workforce is ready to embrace changes despite the current challenging environment with a resilient mindset, which the leadership needs to capitalise on,” said the StrEdge Director. 
The foreign currency constraints and the lack of resources due to the brain drain in the IT industry have pushed certain organisations to successfully opt for less expensive technology solutions with the help from external and internal experts.