The first question to ask yourself is what do you really want to achieve, what are the outcomes you are aiming for and why?
In today’s fast-paced business environment, organisations must continually evolve to stay competitive and efficient. An organisational review and restructure can be a crucial step in ensuring your company remains agile and aligned with its goals, but if not done correctly it can be unbelievably destabilising and cause immense harm to the business, its employees and its stakeholders.
But before diving into the complexities of initiating an organisational review and restructuring, it’s essential to ask yourself some fundamental questions and understand the underlying motivations and processes involved.
What Do You Really Want to Achieve?
The first question to ask yourself is what do you really want to achieve, what is the outcome? Clarity on your objectives is crucial. Are you looking to enhance efficiency, improve customer satisfaction, increase profitability or drive innovation? Your goals should shape the entire restructuring process. Without a clear vision of the desired outcome, any restructuring efforts may be misguided and fail to deliver the expected benefits.
Determine the “Why” Before the “How” and “What”
I am a big believer in determining the “Why” before you start working on the “How” and the “What”. Understanding the rationale behind a potential organisational review and restructuring is critical. Are you responding to market changes, internal inefficiencies or future growth opportunities? The “Why” provides the foundation for your strategy and ensures that every step you take aligns with your core objectives. This clarity will help in communicating the need for change to your team and, most importantly, gaining their buy-in.
When and How to Initiate an Organisational Review and Restructure
Timing is everything in an organisational restructure. When & how do you initiate an organisational restructure review? It’s often triggered by significant events such as a merger, acquisition, changes in market conditions, potential revenue opportunities and/or shifts in business strategy. However, proactive reviews can also be scheduled periodically to ensure the organisation remains aligned with its medium and long-term goals. Initiating an organisational review and restructure begins with gathering data, assessing current structures and identifying areas for improvement.
Exploring the Benefits of an Organisational Review and Restructure
When should you consider exploring the benefits of an organisational restructure? I would suggest every three to six years would be appropriate for most organisations. This does not mean you implement a restructure every three to six years, it means that you review whether there would be substantial benefit by initiating a structural review. Regularly assessing the structure of your organisation can uncover opportunities for improvement without requiring a full restructure. If your current structure hinders communication, slows decision-making or limits innovation, it may be time to consider a change. The benefits of a well-planned restructure can include improved efficiency, better resource allocation, enhanced employee satisfaction and increased agility in responding to market demands.
How to Start an Organisational Review and Restructure
Begin by conducting a thorough analysis of your current organisation and identify the strengths and weaknesses of your existing structure. Then take a blank piece of paper, ignore all existing personnel, ignore all existing roadblocks and design the “perfect” structure that would maximise organisational outcomes. An important part of this process is creating role benchmarks for every role that identify and quantify the critical success attributes that are required for an employee to deliver the restructuring outcomes. By objectively analysing the current state and the future state it will allow you to fully consider all options and determine what is possible and, most importantly, what is not possible. Engage with stakeholders at all levels to gain insights and perspectives. This collaborative approach ensures that the restructuring is well-informed and considers the needs and challenges of different departments and teams. Develop a clear plan that outlines the steps, timeline and resources required for the restructure.
Effective Process for an Organisational Restructure
A successful restructure involves several key steps:
- Outcome Analysis: Identify the principal outcomes required from a potential restructure
- Assessment of Existing Structure: Conduct a detailed analysis of the current structure
- Assessment of Role Requirements: For all critical roles create role benchmarks that identify and quantify the abilities, behaviours, passions, expertise and qualifications required to deliver the restructure outcomes (click here to try our role benchmarking survey)
- Visualisation Of Perfect Structure: Start with a blank paper and visualise what the “perfect” structure could be
- Restructure Plan: Collaborate with appropriate stakeholders and finalise the proposed structure and the outcomes it will deliver
- Communication: Clearly communicate the reasons for the restructuring, the benefits and the plan to all stakeholders
- Implementation: Execute the plan systematically, ensuring minimal disruption to daily operations
- Monitoring and Adjustment: Continuously monitor the impact of the restructure and make necessary adjustments to address any challenges or unforeseen issues (click here for customisable surveys)
Strategy is the Easy Part, Implementation is Key
As they say – implementation is just the final 80% ! ! !
Implementing a restructuring requires careful planning and execution. Start by breaking down the strategy into manageable tasks and assign responsibilities. Ensure that all team members understand their roles and how they contribute to the overall success of the restructure. Regularly review progress and address any obstacles promptly. Effective implementation relies on strong leadership, clear communication and a willingness to adapt as needed.
Potential Pitfalls of an Organisational Restructure
While restructuring can bring significant benefits, it’s not without risks. Common pitfalls include:
- Resistance to Change: Employees may resist changes due to fear of the unknown or perceived threats to their roles
- Communication Breakdowns: Poor communication can lead to misunderstandings and a lack of alignment
- Insufficient Planning: Rushed or poorly planned restructures can result in confusion, inefficiencies and increased costs
- Loss of Talent: Key employees may leave the organisation if they feel uncertain about their future or disagree with the changes
- Cultural Clashes: Merging different departments or teams can lead to cultural conflicts if not managed properly
To mitigate these risks, it is imperative to involve management and employees in the planning process, maintain open lines of communication and provide support and training throughout the transition.
Conclusion
An organisational review and restructure can be a powerful tool for driving growth and efficiency. By asking the right questions, understanding your motivations and following a structured process, you can navigate the complexities of restructuring and achieve your desired outcomes. Remember, the success of an organisational restructure lies not just in the strategy, but in its careful, thoughtful and committed implementation.
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Written by Mark Purbrick
