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Cracking the ‘Organisational Restructuring’ Code
Strategies for identifying risk, inefficiencies, opportunities and implementing
successful restructuring process
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.
What is
Organisational Restructuring
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.
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
Click here to read: 7 Outsourcing Challenges Your Organisation May Be Facing
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
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
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
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
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
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
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
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
Remember!
Following a restructuring, the company
should be left with smoother, more
economically sound business operations.
READY TO GET
STARTED?
Visit www.workforcegroup.com or
Send an email to -
hello@workforcegroup.com
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Workforce Group
… We go
beyond
What we do
We help organisations solve problems around:
Staff Payroll
Management
Performance management
support
Health insurance management
Executive, Experienced and
Graduate Recruitment
Staff onboarding and
training
Staff records
management
Leave and exit
management
Background
verification
Strategy Development and
Execution
Digital Learning Function Specific
Programmes
Leadership
Development
Digital Content Creation and
Conversion
Assessment and
Development centre
Occupational testing
and Success Profiling
Independent Contractor
Management
Assessor skills training
Professional Employer
Organisation
Employer of Record
Recruitment Process
Outsourcing
Workforce by Numbers
17
Year-old
Startup
8
Businesses
120+
Consultants
20
African Countries
8000+
Outsource
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Employees
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capacity
Learning
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Computer-
based test
facility
250+
Clients
10+
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States in
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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 Click here to read: 7 Outsourcing Challenges Your Organisation May Be Facing
  • 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
  • 14. Remember! Following a restructuring, the company should be left with smoother, more economically sound business operations.
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