5 SIGNS THAT RESTRUCTURING ISN’T RIGHT FOR YOU
                     5 SIGNS THAT RESTRUCTURING 
ISN’T RIGHT FOR YOU
Why do you need to restructure
● Reason why corporates consider restructuring is to eliminate 
financial obstacles plaguing the business. 
● Any restructuring exercise can bring the desired results only when 
business owners understand the fundamental problems faced by 
the company. 
●  In other words, if you should restructure is just as important as 
how you should implement the restructuring.
Unhappy employees
● If your employees are unhappy, you will find it difficult to retain 
existing talent and attract new talent to join the workforce.
● Restructuring can further impact the morale of your employees 
and make them unhappier. They can find themselves completely 
lost, without knowing how the reporting structure works or what 
work they should prioritize. 
● There are several reasons why your employees may be unhappy 
-- focus on fixing those issues instead of restructuring the 
business.
You want to eliminate functional silos
● Always aim towards eliminating functional silos to reduce 
duplication of efforts. 
● Too many silos within the company hinders the free flow of 
communication.
● Restructuring in such situations doesn’t encourage better 
collaboration within the team. 
● Encourage departments to operate cross-functionally. 
Someone is pushing for restructuring
● A new CEO took over the reins and wants to undertake a 
restructuring exercise.
● Very often, new executives treat restructuring as an experiment to 
drive growth in the company. 
● This results in nothing more than shifting a few functions within the 
organizational chart, causing more harm than good.
● It is usually done to assert authority and the consequences are 
mostly disastrous .
● The absence of cross-functional integration or lack of 
decentralized functions cannot be simply fixed with restructuring. 
Performance isn’t as good as expected
● Carrying out restructuring for a company that is not performing 
well is as good as fixing a band-aid on a bullet wound. 
● Instead of devoting significant resources towards restructuring, 
focus on increasing cross-functionality within the organization. 
Is it the second time?
● If you have already tried restructuring before and did not achieve 
satisfactory results, you won’t gain much by 
restructuring your business again. 
● Instead, you need to identify the core issues that need fixing and 
work out an effective plan to eliminate those
Read more on if or not restructuring is the way forwar
d for you and your company
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