Benefits Of Organizational Restructuring

Restructuring can involve moving jobs from one location to another in one for one ratio. Occasionally, the change is focused on improving operational efficiencies or service levels by grouping activities together.

At other times, survival is the only option. When restructuring occurs, the goal is always to realize the most benefit. In the context of restructuring, what constitutes “good”? All it takes is putting the right people in the right jobs.

When constructing your financial business case for restructuring, consider these potential benefits.


Improved Efficiency

Taking similar work and grouping it together to achieve better efficiency is another common goal of restructuring projects. This is often accompanied by a reduction in headcount, but at its core, it is simply reorganizing organizations and jobs to do only a limited set of tasks in a more efficient way.

Efficiency is often thought of in terms of factory production, but it also applies to service. In call centers, customer service is consolidated to a single group of individuals who handle it exclusively. This helps to increase efficiency. Visit this page to read more about improved efficiency.

Improves Communication

A good implementation plan that encompasses both change management and communication planning will generally lead to better communication. Some organizations complain that the quality of communication has declined post-restructuring.

There are two reasons for this. In every restructuring project where labor efficiency goals are included, there usually are focused cost centers with service level agreements that determine how the project will work and what is expected of staff. Better communication follows when roles and expectations are clear.

Organizational restructuring ensures that each aspect of your business are revisited and so there can be little to no miscommunication within your ranks. As we all know, communication is indeed key to a lot of what we do day in and day out. It’s not even an exaggeration to say that communication can make or break the future of your company.

A team that works together on similar tasks without layers upon layers of management tends to have more fluid communication. Despite working on similar things, they are often next to each other, whether on the same thing or not. Knowledge sharing occurs when they work together. If you want to learn more about the benefits of employee and staff communication, visit


Less Expensive

One of the most obvious advantages of reorganizing is a reduction in payroll costs. This can be accomplished by using fewer people to do the same work. We see this most often as an outcome of implementing new technology in the workplace.

With the introduction of self-service checkouts, for example, the staffing burden has been greatly reduced in some retail chains. The second factor is labor arbitrage, which involves moving work to a less expensive place.

Although wages tend to rise over time to keep pace with demand, the initial savings can often support the case for change. In the early 1990s, large companies began shifting tech work to countries with low labor costs and a highly skilled workforce with an arbitrage opportunity.

Eliminating redundancy ensures that your company runs like well-oiled machine and that everyone is efficient and good at what they do. All of these may be addressed through organizational restructuring. Plus, your business will truly benefit from all the savings this may bring.

These days, even small businesses and solopreneurs are outsourcing their administrative support to save money. Click here to find new ways to cut payroll costs.

Better Use of Talent

Restructuring also allows you to make better use of your current talent, which is closely related to efficiency. The goal here is to move administrative tasks away from those who should not be doing them.

As an example, imagine a large HR department that has been restructured to commingle payroll and administration responsibilities into one team. As a result, more junior staff members are given more opportunities for employment, and more experienced professionals are able to focus on strategic tasks.

Being efficient does not mean that you dump workload to just a few employees, as a matter of fact, it’s really far from it. It means that you better delegate task to people that are really going to be good at what they do.

All of these inefficiencies will be addressed when your organization is restructured.


New Opportunities

The discovery of new opportunities can sometimes be another unexpected consequence of better communication. Even though it doesn’t always happen, it is very beneficial when it does. As a result of collaborating and communicating on solutions to problems, groups of individuals can work more effectively, more efficiently, and on better ways to solve problems. This can lead to completely new ways to work or new business opportunities.

For many businesses, the pandemic has been a challenge, but for others, it has completely transformed their operations. Even the government has undergone significant changes that have benefited everyone. One example is jury duty. It’s so much easier and more convenient to use Zoom court than a local court. Telemedicine has also grown much more mainstream since two years ago.

Of course, as they say, the only thing that’s constant in this world is change. This generation has shown resiliency above everything else. We’re certain that your ranks will welcome change especially if it’s for the betterment of the company.


How To Go About Organizational Restructuring Your Business?

If you are considering restructuring for your company, a thorough financial business case with a clear focus on benefits is likely to lead to opportunities to provide a fresh perspective for your company or organization.

It may not be easy to restructure your business, but if you do it right, you will not only be able to reap the benefits listed above, but you will also have less stress and happier employees. This can lead to an overall better work environment for everyone. If you do choose to move forward with your plan, it is important to work with the right strategic partner.