Restructuring an Organization

When restructuring an organization, change can be a good thing.

Restructuring an organization takes time and resources but can be worth the effort if done well.

There are many times in the life of an organization when it will need restructuring. It could be due to a decline in sales or profits, changes in the business sector or technology, new regulations, new leadership, or a whole host of different scenarios. 

The key is knowing when an organization needs restructuring and then finding the best way to proceed. Once an organization is restructured, other components such as the vision and mission statements, marketing strategies, brand, and leadership may need to be adapted. 

With an eye towards the various components of an organization that deserve consideration in the restructuring process, Geary Reid provides valuable advice from his organizational experience. You’ll learn everything from strategizing to revisioning and establishing goals for your restructured organization.

By following the advice in Restructuring an Organization, your organization will become more efficient, better at risk reduction, and more effectively managed.



Not all organizations are established with an aim to be profitable. Those organizations that constantly have financial difficulties may require restructuring or business closure. Many business owners may not want their organizations to fail, so they work towards restructuring their organizations. When natural disasters occur, this can cause organizations to lose revenues, and some of their key employees may be displaced. Whenever there is a change in government, the elected party may request that certain government organizations be restructured, not because those organizations were underperforming but because political leaders may want to install their supporters in those organizations. Every new owner and leader may request that their organization be restructured due to the fact that they may have a new strategic direction for the organization.

A restructured organization may have to establish a new vision and mission statements to align with its new direction. Leaders must be engaged in strategic planning for their organization, where goals and objectives are identified and written so that employees understand and can adhere to the new direction. New market and product strategies may be needed for restructured organizations. After being restructured, to change the image of the organization, rebranding is vital. New leaders may be installed after restructuring, since former leaders may not be able to effectively execute the new changes. Additionally, though current employees may understand the history of the company, retraining is a critical tool during any restructuring process. 

In cases where current employees are reluctant to transition with the restructuring, organizations need to ensure that the required skillsets are found in new recruits. Therefore, leaders must budget for the training and development of employees. In addition to training and development, succession planning is another critical function, as leaders in restructured industries retire. As globalization continues to expand, leaders need to be more cognizant of cultural differences and develop strategies geared towards managing a workforce of differing cultural composition. A restructured organization must be efficient. This would mean that new owners and leaders may have to invest in new machinery and equipment. There may also be the need to reduce the workforce and increase the use of machinery, equipment, and information systems. With the new information system, a leader may be better able to manage inventory, thus reducing waste.

Most leaders are constantly looking for an increase in profits and cash flow. With excess cash inflows, leaders can consider investing the extra funds in short-term or long-term investments. Not all organizations may have enough funds, so the leaders may have to seek financing, but that must be done at an affordable interest rate. Leaders must use financial ratios to assess the organization’s performance. These ratios must be interpreted, and relevant actions must be taken to make the organization profitable. The performance of existing and restructured organizations have to be measured regularly to avoid organizational failure. Everyone’s input is important for the success of the restructured organization.


When an organization is forced to change because of its external environment or internal factors, it often needs restructuring. Here, Geary Reid shares many reasons why organizations may need restructuring and ways that organizations can do so efficiently and effectively. Businesses don’t have to stay stuck. They can find new leadership, tools, and sales and marketing techniques to help them grow and succeed. Failing organizations can be re-envisioned, and changing ones can find stability by keeping some of the factors mentioned here in mind.

Author Bio

Author Geary Reid has played a part in restructuring many organizations in the private and public sectors. He has seen firsthand how such changes affect organizations and their employees and seeks to pass on the wisdom he has gained from those experiences. He hopes he can help organizations and individuals avoid the complications that can arise from restructuring by proactively planning to prevent them.

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