Consulting Intitiative: Organisation Restructuring

Dhruvsatya Today business environment are getting more volatile, uncertain, complex and Ambiguous- we are living in VUCA times - this reality demands that organizations constantly change and develop - a high degree of response agility. It is in this context organization restructuring assumes vital significance.

Organizational restructuring refers to the shift in its existing processes, procedures, reporting structures, management, hierarchy within and cross-functional departments. Businesses seek to diversify into new areas to increase sales, optimize their capacity, and conversely shed off divisions that do not add much value, to concentrate on core competencies instead. Such an initiative is driven mostly by top management.

Need for organizational restructuring arises when:

♦  Departments have excessive or limited number of employees.
♦  Internal communication process is inconsistent and inefficient.
♦  New initiatives taken by the top management which need changes in workflow and processes.
♦  Higher end objectives are being set.
♦  No measurable results seen among departments and employees.
♦  Performance levels are going down.

How will it benefit you?

■  Restructuring leads to a decrease in operational costs.
■  Operational efficiency shows a considerable increase.
■  Unnecessary layering of management gets eliminated, thereby, bringing in effective decision making and communication.
■  Quality standards increase.