Reorganize - Transform – Stabilize

Corporate restructuring is a buzzword these days. Companies have different opinion on advantages and disadvantages of restructuring.

I feel, though, that restructuring is hard, but a successful turnaround can help companies to renew their competitiveness and help them be inline/ahead of the market. A leader’s attitude about the company’s reorganization strategy decides how it will be received by his/her employees and co-workers. The excitement of restructuring will reflect among all involved only if the leader is excited and is able to communicate effectively.

A company reorganization process must involve high sensitivity, strategy, and foresight from all stakeholders. If you’re planning to shake up the work lives and processes of an entire company, the key to success is planning and communication.

Strategy Revisit – Non-performing service lines and entities that do not fit with the company’s primary strategy can be eliminated by the company’s management to help boost performance.?These service lines or entities may not fit in strategically with the company's long-term goals and thus will be sold to possible purchasers so that the company may focus on its primary strategy.

More Revenue and More Profit - Unprofitable projects are generally a burden on a company’s balance sheet/P&L and getting rid of the same might bring in/save a significant amount of money. In case securing financing is difficult, organizations can also explore separating certain service lines to raise cash and decrease debt.

Open new doors for several opportunities – Restructuring allows companies to identify the high priority service lines and assign the right people for the right jobs, thereby enabling the company to become a more dominant force in the marketplace than their rivals. Acquiring competitors and other players in the market help build market leadership and enable faster growth as compared to organic growth.

Conclusion - The bottom line is that company restructuring can be a fresh start for everyone; it can revitalize a company, reinvigorate employees, and allow for greater career growth. But planning and communication are key. Hence, start your company reorganization process early, get everyone involved, and stay organized by creating an org chart that can guide your company to a greater, more efficient organizational structure.