Thinking of restructuring? 10 questions to ask yourself before you start

Thinking about restructuring your business? It’s a big move that can have a major impact on your company’s operations, team, and overall success. Before you dive in, it’s crucial to weigh your options and understand the implications.

Here are some of our favourite questions you should ask yourself to guide your decision:

1. Why are we considering a restructure in the first place?

It’s important to know your reasons. Are you looking to boost efficiency, adapt to market changes, or fix financial issues? Pinning down your “why” helps you figure out if restructuring is really the answer. If it is the answer, your “why” is also integral for helping with clear communication to your team. 

2. Does our current setup fit our strategic goals and vision?

Check if your existing structure aligns with your long-term goals. If there’s a mismatch, you might need to restructure to get everything back on track and focused on your objectives. 

3. Is our current structure slowing us down or stalling our growth?

Look for any bottlenecks or barriers in your current setup. If your structure is causing inefficiencies or hampering growth, restructuring might be the way to streamline operations and scale up effectively.

4. How will a restructure affect our team and company culture?

Consider the impact on your team and the overall culture. Your team is key to making things work, so keeping them engaged and informed is essential. Restructures take a huge toll on a team, no matter how necessary or even how well you do them, so it’s important to understand deeply what those consequences might be as it may affect your decision. 

5. How will a restructure impact our customers?

Think about how changes might affect your customers. It’s crucial to maintain or improve their experience because any hiccups could lead to dissatisfaction or lost business. Map out what a restructure might look like in relation to customer satisfaction and outcomes and use that information to guide your decision. 

6. What’s the financial picture for restructuring, short-term and long-term?

Weigh the costs and benefits of restructuring. Look at the immediate expenses and the potential long-term gains to make sure it’s a smart financial move that will pay off in the future.

7. What risks are we taking with a restructure?

Identify the risks and challenges that come with restructuring. Knowing what could go wrong allows you to plan for it and put strategies in place to handle any bumps along the way. This is a crucial step. 

8. Have we looked at other options besides restructuring?

Before jumping into restructuring, explore other alternatives. Sometimes, tweaking processes, training, or technology can achieve your goals without a full overhaul, saving time and resources. This is a good time to look at your leadership development processes too - often our leaders can impact the need for a restructure and we don’t often consider this. 

9. Do we have a solid plan for implementing the restructure?

Make sure you have a detailed plan that lays out the steps for restructuring. A clear plan helps keep things organized, minimizes disruptions, and ensures everyone knows their role in the new setup.
P.s We’re good at restructure stuff - you can also hire us ;) 

10. How will we know if the restructuring is a success?

Set up clear metrics to measure the success of your restructuring efforts. This helps you track progress, see if you’re meeting your goals, and make adjustments as needed to keep moving in the right direction.

Asking these questions will help you figure out if a business restructure is the right move and guide you through the process. Restructuring can sometimes be necessary due to financial constraints or needing to adjust for growth, but it’s incredibly important that you take your time to do it thoughtfully, for the benefit of your team, your culture and your business.