Restructuring

Restructuring

Restructuring Jonathan Poland

Restructuring is the process of reorganizing or reshaping an organization in order to improve its efficiency, effectiveness, or competitiveness. It may involve changes to the organizational structure, processes, systems, or culture of the organization. Restructuring can be prompted by a variety of factors, such as changing market conditions, technological advancements, financial challenges, or leadership changes.

There are several types of restructuring that an organization may undertake. One common type of restructuring is downsizing, which involves reducing the size of the organization in order to cut costs or increase efficiency. This may involve laying off employees, closing facilities, or consolidating functions. Another type of restructuring is rightsizing, which involves adjusting the size of the organization to better match the needs and resources of the business. This may involve expanding or contracting certain departments or functions, or shifting resources between different areas of the business.

Restructuring can also involve changes to the organizational structure of the business. This may involve creating new departments, teams, or positions, or altering the reporting relationships within the organization. Restructuring may also involve changes to processes and systems, such as introducing new technologies or streamlining existing processes. Finally, restructuring may involve changes to the culture of the organization, such as adopting new values, behaviors, or practices.

While restructuring can bring about significant benefits, it can also be a challenging process that involves managing change, addressing resistance, and communicating effectively with stakeholders. It is important for organizations to carefully plan and execute restructuring in order to minimize disruption and maximize the chances of success. The following are common types of restructuring.

Mergers & Acquisitions
Integrating the administration, operations, technology and/or products of two firms.

Legal
Changing the legal structure of a firm such as ownership structure. For example, a business unit may become its own legal entity.

Financial
A change to a firm’s capital structure such as a debt restructuring designed to allow a firm in financial distress to continue to operate.

Turnaround
Restructuring the administration, operations and products of an organization that is performing poorly. Often requires new leadership and a change to strategy and culture.

Repositioning
A strategy designed to move a firm or business unit to a new business or operational model. For example, a firm that sells software products that moves to a software services model.

Cost Restructuring
Cutting administrative and operational costs in response to a downturn or anticipated downturn in revenue or margins.

Divestment
Selling or closing a business unit that is unprofitable, nonstrategic or problematic in some way.

Spin-off
Restructuring a business unit to be its own company while retaining some ownership. A spin-off is often done to seek a high valuation for an attractive part of a business.

Learn More
Expectancy Theory Jonathan Poland

Expectancy Theory

Expectancy theory is a motivational concept that suggests people are motivated by their beliefs about the relationship between their efforts…

Lifetime Customer Value Jonathan Poland

Lifetime Customer Value

Lifetime customer value (LCV) is a measure of the total value that a customer will bring to a business over…

Business Case for Selling B2G 150 150 Jonathan Poland

Business Case for Selling B2G

A hypothetical example of a business case where a company could potentially double its revenue by securing a specific government…

Negotiation Jonathan Poland

Negotiation

Negotiation is a dialogue between two or more parties with the goal of reaching an agreement. It is a fundamental…

Team Strategy Jonathan Poland

Team Strategy

A team strategy is a plan that outlines how a team will achieve its goals. Developing and implementing a strategy…

Competitive Advantage Jonathan Poland

Competitive Advantage

Competitive advantage refers to the unique advantages that a firm possesses over its competitors. In a highly competitive industry, firms…

Operations Plan Jonathan Poland

Operations Plan

An operations plan is a document that outlines the steps a business will take to establish, improve, or expand its…

Acceptable Risk Jonathan Poland

Acceptable Risk

An acceptable risk is a level of risk that is deemed to be tolerable for an individual, organization, community, or…

Rationalism vs Empiricism Jonathan Poland

Rationalism vs Empiricism

Rationalism and empiricism are two philosophical approaches to understanding the world and acquiring knowledge. While they share some similarities, they…

Content Database

Marketing Message Jonathan Poland

Marketing Message

A marketing message refers to any media or communication that is intended to persuade or influence customers. Marketing messages can…

Lead Generation Jonathan Poland

Lead Generation

Lead generation is the process of identifying and attracting potential customers for a business. This is typically the first step…

Piedmont Lithium Jonathan Poland

Piedmont Lithium

Piedmont Lithium Inc., a developing company, focuses on the exploration and advancement of resource projects in the United States. The…

Visual Branding Jonathan Poland

Visual Branding

Visual branding is the use of visual elements, such as color, typography, imagery, and design, to create a cohesive and…

Hudbay Minerals Jonathan Poland

Hudbay Minerals

Hudbay Minerals Inc. (HBM) is a Canadian-based diversified mining company primarily focused on the discovery, production, and marketing of base…

Value of Offerings Jonathan Poland

Value of Offerings

Value is a concept that refers to the usefulness, worth, and importance that customers assign to products and services. This…

What is Complex Sales? Jonathan Poland

What is Complex Sales?

A complex sale is a type of sales process that involves multiple stakeholders, a high level of customization, and a…

Data Quality Jonathan Poland

Data Quality

Data quality refers to the accuracy, completeness, and reliability of information used for various purposes within an organization. Ensuring high…

Domain Knowledge Jonathan Poland

Domain Knowledge

Domain knowledge refers to a person’s understanding, ability, and information about a specific subject or area. It is often associated…