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Organizational Restructuring - A Boon or A Bane?

Author: Mark Firth/Friday, July 26, 2019/Categories: Blogs

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Organizational restructuring revolves around making key changes in the internal structure of the company by refurbishing departments, updating ownership, revamping operations or processes. Companies usually opt for it to make their business more profitable, organized and integrated. However, sometimes it is also seen as a sign of instability and that the company is struggling to stay afloat. This might leave the investors worrisome and unsure.

Restructuring is a very common procedure during mergers. It is also undertaken to boost profits by increasing efficiency. Organizational restructuring is also a byproduct of change in overall goals, motto or nature of business. It helps implement new methods of work culture to meet new requirements. In this era of ever changing technology, it is also carried out to deal with newer innovations.

During an organizational restructuring exercise, one needs to prioritize quality over quantity. When it comes to employees, those, who are truly benefitting and adding value to the business, should be prioritized. While there is no particular manual for rightful restructuring, one should opt for strategies that suit their organization the most. However, thinking out of the box and being bold enough to pull all the stops is a mandate, especially to ensure that you don't have to redo this for a while, and it provides the required long-term results.

Organizational restructuring, leads to decrease in operational costs. Some other key benefits of restructuring are improved communication, quicker decision making due to lesser layers between simplified senior management and employees and increased operational efficiency leading to more control. One other key advantage of conducting an organizational restructuring exercise is added focus on teams over individual success.

Organizational restructuring and its consequences completely depend on your reason behind doing it, strategy and implementation. If any of the steps involved are not conducted properly, it can go south real soon. Hence, it can be a boon or a bane, depending on how you conduct it.

At The Taplow Group, we help organizations to navigate their way to a successful organization design that helps them to get on the right to path to achieve their business goals. To know more about our services visit us at


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