Organisations need to restructure their processes to stay competitive in today's ever-evolving business landscape. Whether it's to maintain their competitive edge or respond to industry developments, understanding the fundamentals of restructuring is essential to ensure successful implementation and achieve desired outcomes.
As a business leader, it is crucial to recognise that change is the only constant in business, and companies that resist change are at significant risk of falling behind. To realign your operations and create a more agile and adaptable organisation, you must be willing to embrace change and take bold steps to drive transformation.
One effective strategy is to remove bureaucratic layers and simplify decision-making processes. You can achieve this by empowering employees to make decisions and giving them the necessary tools and resources to succeed. In addition, by fostering a culture of collaboration and transparency, you can create a more efficient and effective organisation better equipped to respond to market changes and customer needs.
In this deck, you will discover valuable insights and practical tips to help you navigate the complexities of organisational restructuring.
You'll also learn
- The fundamentals of organisational restructuring
- Why companies may consider restructuring
- The various types of restructuring
- A practical 5-step process for navigating restructuring
Simplifying Complexity: How the Four-Field Matrix Reshapes Thinking
Cracking The Organisational Restructuring Code
1. Cracking the ‘Organisational Restructuring’ Code
Strategies for identifying risk, inefficiencies, opportunities and implementing
successful restructuring process
2. The ever-changing landscape of the corporate world can make it
challenging for firms to navigate through uncertainties. To succeed
in today's business environment, adaptability has become an
essential skill for leaders across all levels to possess.
In particular, organisational restructuring is a complex transition
that can prove challenging for corporations. Being able to navigate
and execute a successful restructuring requires a high level of
agility and flexibility to adapt to the shifting demands of the
market.
4. Organisational Restructuring
(also known as business reorganisation) is a
process of reorganising ownership, operational and
other structures of an organisation to make the
business profitable. It also involves assessing the
organisation to determine its strengths,
weaknesses, and potential dangers, then using the
results to guide strategic decisions.
Restructuring is a type of corporate action taken to
modify operations, business models, processes or
structures of the organisation to transform it for the
better, and it is usually aimed at making a business
more efficient.
5. Who handles an
Organisational Restructuring?
In many organisations, restructuring often involves the following groups:
Strives to keep the
organisation viable and
operational and may
measure activities in the
reorganisational process
to ensure its success.
Management
01
if an organisation
informs employees
early on, about
restructuring, it can
lessen resistance and
boost success.
Employees
02
Employee
reorganisations are
frequently guided by
plans developed by
HR professional or
department
HR Personnel
03
Their involvement
may be dependent on
factors like company
size, and scale of the
restructuring
Stakeholders
04
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6. Types of Organisational Restructuring
Organisational
Restructuring
Merger occurs two businesses get
together to conduct business. When a
corporation absorbs another by
buying the entire stake of the target
company or companies.
Mergers and Acquisitions
Changes in legal norms (change in
ownership, agreements, legal
business etc.)
Legal Restructuring
Change in business model or
new business model.
Repositioning
A change in the capital structure of
the business. (i.e. changes in debt
structuring, equity, etc.)
Financials
Makes a particular business
unit of company into a
separate company and
retains its ownership.
Spin-off
When a company sells
underperforming assets.
Divestment
Takes place to cut costs in the
administrative and operations
section. (automating procedures,
downsizing, etc.
Cost-reduction
Involves changes in the
operations side,
administrative, products, or
services.
Turnaround
7. Introduction
Reasons for
Restructuring an Organisation
In times of uncertainty, a
company may shift focus and
go through a restructuring
process to remain in
business/competitive.
Dynamism in the
business environment
Restructuring may occur in
the business proceeding in a
a buy-out case (a party
acquires the rights of a
controlling interest in the
business for a fee)
Buyouts
To take advantage of
possibilities for greater
corporate growth, a business
may restructure.
Leveraging market
opportunities
When an organisation decides
to change its business model,
products or services, proper
reorganisation is needed.
New business direction
The leadership of an organisation
is very key to its growth; a
breakdown in its structure may
require restructuring
In-adequate Company
Leadership
Businesses may restructure to
meet the demands of their
customer base.
Satisfaction of customers
needs
8. How To Successfully Restructure
Your Organisation: A 5-Step Process
Start with your business
strategy
Evaluate current structure
Develop a new structure
Communicate the reorganisation
Implement new organisational
structure
Click here to read: What Is Strategic Workforce Planning? 5 Steps for Successful Planning
9. Start with your
business strategy
Discovering the primary motivations behind top
management's desire to restructure is the first step
in developing a firm reorganisation strategy. There
is no way to direct the reorganisation process and
no way to assess its effectiveness without a clear
knowledge of the new direction the firm is taking or
describing the issue the company is attempting to
solve.
If your company hasn’t solidified its business strategy yet,
take a step back and go through the strategic planning
process first.
NOTE:
01
10. Identify strengths and weaknesses
in the current organizational
structure. It is imporatant to have a
clear understanding of where the
organisation currently stand
Evaluate current
structure
Gather Feedback
Consult Key stakeholders
Weigh advantages or profit of a potential
restructuring against the risks
02
11. Develop a new structure
When a plan is in place to undertake the reorganisation,
the likelihood that it will succeed can increase. Your
restructuring strategy should take a variety of elements
into account, such as workforce strength and monetary
and legal restrictions.
Included in a new organisational structure
should be:
• An indication of who will be making formal
decisions within departments
• Attributes of employees, including skills
and experience
• The description, placement, and
connections between all of the functions
within the organisation
03
12. C
o
m
p
a
n
y
n
a
m
e
.
c
o
m
Communicate the
reorganisation
The support that a restructuring receives from
important stakeholders within the company
may determine how well it goes, hence make
communicational a priority.
It is important to keep employees informed
about organisational restructure plans through
regular and open communication in order to
reduce uncertainty and opposition.
04
Click here to read: How to Build Leadership Capabilities for Successful Business Transformation
13. Implement new
organisational
structure
Implementing the new
corporate structure is the final
stage of restructuring.
It's crucial to make sure your
team is aware of the potential
changes so you can get them
ready for the restructuring.
Give employees time to adjust
to restructuring accurately
Create flexible implementation
plan
Think back to your business
strategy, and make adjustments
if the new organisational
structure still doesn’t meet your
ultimate goals.
05
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