Restructuring involves a repositioning of an organisation's strategic focus. The process entails the organisation changing key internal structure(s) (i.e., legal, ownership, operational or strategic), so that it is better able to meet its present and evolving needs. In many instances, the restructuring is precipitated by an unexpected, emergency crisis or event that forces the organisation to respond quickly to prevent a threat to its very survival, such as a bankruptcy or insolvency.
However, we believe that organisations need not wait for a grave threat to materialise before engaging in a strategic restructuring. In fact, an organisational restructuring in the absence of such a crisis can result in activities that produce higher levels of strategic value, which can substantially mitigate, if not entirely prevent, the emergency from arising in the first place. While true that political and socio-economic variables are clearly outside of most organisations' ability to influence, this does not mean there is nothing that can be done. As Mahatma Gandhi said, "you must be the change you want to see in the world."
Organisations that are willing to take Gandhi's sage advice can substantially decrease, and even eliminate, being forced to undertake rushed restructures that may be necessary to confront a present danger, but also severely impinge long term value and growth. Organisations that remain open to change and engage in periodic internal reviews and strategic restructurings will consistently flourish in changing environments and be well positioned for long term growth.
mbh helps guide clients in understanding when an organisational restructuring is required to invigorate performance and release true value and growth potential. mbh utilises expertise derived from our portfolio management practice to assist clients in determining which activities are driving organisational wealth and which ones are not. This advice includes an assessment of whether an organisational restructuring is required to maximise value creation and growth.