Why doesn't restructuring succeed based solely on new structures and processes?

In a restructuring, it is not only the strategy for the new organization that determines success—that is, whether the targeted figures are achieved. While establishing new structures and processes lays the foundation for future business success, the quality of change management is crucial for overcoming the specific challenges of the transformation.

What other success factors are crucial during restructuring?

All the well-known elements of successful change management must not be overlooked during a restructuring: clear and credible communication to engage employees, as well as retaining top performers and talent, whose risk of leaving increases during periods of uncertainty.

To retain them, it is important to understand and enhance their willingness and ability to adapt to change. Continuous monitoring of the transformation and its progress is, of course, a given during restructuring.

What role do managers play in restructuring?

Managers should quickly be empowered as key drivers of the transformation—not just in terms of the technical aspects of implementing the restructuring. Above all, they should be able to act as advocates who provide direction, address resistance, and credibly champion the changes.

For executives to take on this role, it is crucial to establish a clear and, as far as possible, attractive vision for the individual functional areas of the restructuring. On this basis, priorities can be set to make optimal use of limited resources during the restructuring.

The following figure illustrates the interconnections among the various areas of action in a restructuring process:

Why are “quick wins” so important in a restructuring?

Ultimately, it’s the results that count in a restructuring. Quick initial successes in the first few weeks or months are the best way to dispel existing concerns, resistance, and fears. These “quick wins” prove that the chosen strategy is on the right track and that the new structures and processes are taking effect.

The motivation and commitment of all stakeholders—from investors to executives to employees—are bolstered by these initial successes. This also makes it easier to overcome obstacles and resolve conflicts as the restructuring process continues. 

How can the success of the restructuring be ensured?

The results of the restructuring, change management, and leadership should be continuously evaluated to optimize the next steps. This is the only way to ensure that new business models are established sustainably and that the organization emerges stronger from the change process.

Of course, there is no guarantee that all restructuring goals will be achieved. For example, changes in external conditions during the restructuring—over which there is no control—can have a significant impact on the process and its outcomes.

In any case, it is clear that integrated change management demonstrably increases the chances of achieving the goals of a restructuring and the transformation necessary to achieve them.