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Factors to Consider When Restructuring an Organization

Restructuring an organization is a complex process. There are several factors to consider before embarking on a new organizational design. While restructuring aims to maintain the viability of an organization, it can lead to bad strategies. Therefore, the best way to ensure the success of a restructure is to involve key stakeholders and confirm value drivers before embarking on the restructuring process. The following are the factors to consider before launching a restructuring initiative.

Restructuring your organization involves the elimination of existing roles and repositioning others. This process can be particularly difficult for HR departments, as it often involves discussions about union agreements, employment contracts, and work accommodations. As a result, you need to communicate the nuances of the restructuring process to all affected parties. Because people are the real change agents, you should involve them in the restructuring process as much as possible. However, it is imperative to ensure that the restructure process involves all relevant stakeholders, including management, executives, and employees.

A thorough operational turnaround plan should identify future needs and eliminate excess. By focusing on the activities that generate future business value, you will be able to reduce costs and maintain employee morale. A zero-based organization and reduced headcount are key factors to achieving ambitious goals. Moreover, you should create an operational turnaround plan that shows how you will right-size your headcount, supply chain, and footprint. By doing this, you can achieve the desired results without compromising on quality or service.

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