How to Effectively Apply Organisational Restructuring to Your Business



Most businesses go through a phase (sometimes more than once) where the company must change its structure and processes to operate more efficiently, spend money on the correct projects, reduce or increase staff, and increase productivity. It is a stage during which the company changes shape and structure. Organisational restructuring can be very delicate, because there are people involved, and their feelings, morale, job satisfaction, roles, and responsibilities must be taken into consideration for a successful organisational restructuring. It is not as easy as announcing changes within the company and pushing them through; restructuring must be handled with kid gloves and consideration.

Types of Organisational Restructuring

There are various ways in which a company can be restructured and these include the following:

  • Mergers or acquisitions;
  • Restructuring because certain key stakeholders withdrew;
  • Joint ventures;
  • Demerger – division of the company into subsidiaries or acquiring more subsidiaries;
  • Buyback of securities.

How Restructuring Works

First, there has to be a process that allows identification of the reasons the organisation underperforms and then a strategy must be developed to improve performance. Many elements are involved in corporate restructuring: the staff members and the capital, operational, and financial structures must all be taken into consideration and solutions be found that allows the company to perform better and become more profitable. Restructuring affects people; for example, people may lose their jobs while others get promoted, or job descriptions and tasks of particular positions may change markedly. There are certain things that are crucial during restructuring:

  • Communication: Most people naturally fear or dislike change and ambiguity may leave employees feeling insecure and fearful. Their incomes may be in jeopardy, so it is natural that they may feel anxious about the process. It helps to keep communication lines open both ways, listen to staff, consider suggestions, and address fears. Transparency in communication is vital to build trust, and silence from management during restructuring can be very counterproductive.
  • Focus on the problem: If your technology holds you back, appoint specialists to deal with it. If your clients are unhappy, get experts to deal with the issues. If the finances are the problem, get professionals who can help. Centre all efforts on addressing the problems that have been identified.
  • Follow up and evaluate: Once the changes have taken place, it is important that employees are consulted to find out more about how effective the restructuring was. This can be done by putting together a focus group that consists of people from all levels of the organisation. Important questions must be asked and answered and concerns and problems must be addressed as soon as possible.

If you feel that your organisation needs restructuring to make it more productive and profitable, it is best to employ external professionals who deal with organisational development. Often, internal staff and management can be a little myopic in their views and have personal agendas that may negatively affect the restructuring. At FWA Organisational Development, our professionals have all the experience and knowledge you need to implement a highly successful restructuring process and get you back up to speed as soon as possible. Give our consultants a call today.

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