In this article we will discuss ways to identify when it would be prudent to think about restructuring and what are some of the most clear and present signs that your organization may be in some type of distress.

1. 9 Signs You Need To Think
About Restructuring
By Suzzanne Uhland
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2. When it comes to a company, restructuring is defined as “bring
about a drastic or fundamental internal change that alters the
relationships between different components or elements of an
organization or system”. This means an overhaul that will bring about
major change on the way things are being done and how some
important aspects of the company are being handled. One of the
most difficult aspects of a restructure is probably being able to
identify when to start thinking about it as an alternative to improve
operations and to better make use of current resources. Here in
Suzzanne Uhland’s Slideshare we have talked about why your
company may need this type of measure and what the advantages
a restructure can offer the organization. In this article we will discuss
ways to identify when it would be prudent to think about
restructuring and what are some of the most clear and present signs
that your organization may be in some type of distress.
9 Signs You Need To Think About
Restructuring

3. The industry is changing
As technology advances and the industry changes, it becomes
easier for companies to fall behind the standard set by
competitors. This doesn't mean that it is precisely the
company’s fault, since you have to consider that many times
those changes in the industry are also caused by a shift in the
social or economic panorama. Companies must stay vigilant
and pay attention to changes around them and the way the
business evolves in order to stay on top and remain
competitive.
9 Signs You Need To Think About
Restructuring

4. Underutilized or overworked team members
When people are overworked, managers have a tendency to
find ways to spread the workload more evenly or even hire new
team members. Something similar happens when staff
members are being underutilized; they may be taken to a
different area to do something completely different than what
they should do. In both cases you have to analyze what is
happening and seriously audit the structure of your teams to
find places in which you may be overstaffed or understaffed.
9 Signs You Need To Think About
Restructuring

5. Lowered efficiency
Lowered efficiency is a very evident sign that things need to be looked over.
When a company is not being efficient with its processes, this is a sign that
it may have hired people faster than it should have and its former way of
doing things is simply not cutting it anymore. This could be an easy fix as the
problem may lay simply in the fact that internal operations may not be as
streamlined as they should be.
Mistakes become more common
Constant mistakes are signs that other areas that we will mention are
failing. Lower morale or a lack of efficient communication could be the
reasons why more mistakes are being made and thus, efficiency is down.
The problem with this is that people begin to lose patience and tensions
have a tendency to run high. Mistakes are easier to see and when the
frequency becomes too high then it may be time to examine what is
happening.
9 Signs You Need To Think About
Restructuring

6. High turnover
High turnover applies to both customers and employees. If you see people
leaving the company and new personal quickly coming in and replacing
them, then you may be witnessing one of the clear signs of distress. When
you begin to lose customers at a fast rate as well, you can probably guess
that they are no longer satisfied with your products or services and are
willing to give the competition a try.
Low Morale
There are many reasons why company morale suffers; it could be poor
management, unsatisfactory working conditions and even feedback being
ignored by the leadership. The thing is low morale, is that it is a great
indicators that things in general are going bad because employees at their
level, are usually the first ones to feel the first symptoms of distress because
they are at the core of the organization. Low morale is not something to be
ignored or taken lightly.
9 Signs You Need To Think About
Restructuring

7. Breakdown in communication
Effective communication is all about balance as it shouldn't be
too little but not too overbearing either. As an organization
grows, the way managers communicate with employees and
also the communication lines between teams must shift to be
as efficient as possible. Too little communication may send the
message that management is too busy for the employees and
the mission may become hazy. If communication lines become
oversaturated, then team members will spend more time
talking about things rather than doing.
9 Signs You Need To Think About
Restructuring

8. Profit margins are affected
This is probably the most obvious sign and with due reason. The
purpose of a company is to make a profit and if that is not
happening the way it should be, then we know something is
wrong. Profit in a healthy company is something that even slowly,
should continue to rise steadily. If that is not happening, then you
must take a look at the numbers and begin to make adjustments
when necessary.
Quantity over quality
If quantity is given more importance than quality, then you know
things are not going the way they should. Customers notice these
things and very shortly you will begin to notice how you will lose
your client base.
9 Signs You Need To Think About
Restructuring