Restructuring

The restructuring of a company involves the profound transformation of a company. The reason for restructurings is less often the exploration of new business potentials and more often a crisis. Since companies generally do not transition from prosperity to failure in one step, those responsible theoretically have enough time to save the company from existential problems. The prerequisite for this is that the management recognizes the signs of the crisis in time and initiates appropriate measures. The later this occurs, the higher the restructuring effort and the lower the chances of success. There is no universally valid checklist for how restructurings should be carried out. Every company, and thus every restructuring case, is unique. Nevertheless, there are commonalities, so that the wheel does not have to be completely reinvented each time during restructurings. The key to success is a situational design of seven fundamental restructuring components (7P): Plan, People, Partitioning, Processes, Platforms, Portfolio, and Performance.