How do you make restructuring results last?

Restructuring is a complex and challenging process that aims to improve the performance, efficiency, and alignment of an organization. However, many restructuring efforts fail to deliver the expected benefits or sustain them over time. How do you make restructuring results last? Here are some tips to help you avoid common pitfalls and ensure long-term success.

1 Define clear goals and metrics

Before you start restructuring, you need to have a clear vision of what you want to achieve and how you will measure it. What are the specific problems or opportunities you are addressing? What are the desired outcomes and indicators of success? How will you track and communicate progress and results? Having clear goals and metrics will help you design a realistic and effective restructuring plan, as well as monitor and evaluate its impact.

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2 Engage and communicate with stakeholders

Restructuring can create uncertainty, anxiety, and resistance among your employees, customers, partners, and other stakeholders. To overcome these challenges, you need to engage and communicate with them throughout the process. Explain the rationale and benefits of restructuring, listen to their feedback and concerns, and involve them in decision-making and implementation. This will help you build trust, commitment, and collaboration, as well as identify and address potential issues and risks.

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Andreas Zehe

Business Consultant | Professional Mentor | Certified Executive Coach | Former LatAm CFO e COO
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Restructuring is a necessary process of adjustment which happens in almost every company from time to time. In my experience you are not able to restructure if you don’t have buy-in, alignment and support from all top-level stakeholders. Ideally the restructuring is driven by the head of the company. Those top stakeholder need to explain the need of the restructuring process, the expected outcome, and the measures the company has prepared in case some employees will lose their jobs during or as result of the measures.

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3 Align structure and strategy

Restructuring is not just about changing the organizational chart or the reporting lines. It is also about aligning your structure with your strategy, culture, and values. How does your new structure support your strategic objectives and priorities? How does it reflect and reinforce your desired culture and values? How does it enable and empower your people to perform and innovate? Aligning structure and strategy will help you create a coherent and consistent organization that can adapt and thrive in a changing environment.

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4 Manage change and transition

Restructuring is a major change initiative that requires careful planning and execution. You need to manage both the technical and the human aspects of change and transition. How will you implement the new structure and processes? How will you allocate and redeploy resources and roles? How will you train and support your employees during and after the change? How will you deal with the emotional and behavioral reactions of your employees and stakeholders? Managing change and transition will help you minimize disruption, confusion, and conflict, as well as maximize learning, engagement, and performance.

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5 Review and refine

Restructuring is not a one-time event, but a continuous process of improvement and adaptation. You need to review and refine your restructuring plan and results regularly and systematically. How will you collect and analyze data and feedback from your stakeholders? How will you identify and celebrate successes and learn from failures? How will you adjust and modify your structure and processes based on changing needs and expectations? Reviewing and refining will help you ensure relevance, effectiveness, and sustainability of your restructuring results.

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6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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Khaled Hassan

CFO | Chief Financial Officer | Group CFO | Strategic CFO | Finance Transformation | Financial Risk Strategy | Business Turnaround Strategy | Executive Board Member
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Restructuring is a complex process involving significant changes to a business's operations, structure, and culture. To make restructuring results last, businesses should adopt a comprehensive, long-term approach focusing on sustained change. Here are some strategies that businesses can use to make restructuring results last: 1. Set clear goals 2. Develop a detailed plan 3. Communicate effectively 4. Involve employees 5. Monitor progress 6. Foster a culture of continuous improvement With these strategies, businesses can increase the likelihood that the results of their restructuring efforts will last over the long term and that they will be able to achieve sustainable and positive changes.

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How do you make restructuring results last?

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1 Define clear goals and metrics

2 Engage and communicate with stakeholders

3 Align structure and strategy

4 Manage change and transition

5 Review and refine

6 Here’s what else to consider

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