When an organization makes the decision to restructure there is typically a new to refresh the processes, downsize, reduce overhead costs or eliminate waste. Restructuring is about functioning more efficiently than the way before. A company can restructure to gain competitive advantage such as the New York Times. Some American’s still enjoy a newspaper but printing can be deemed as wasteful as in our current technologically driven world that has demand for information. The internet and capabilities of smart phones provide users with a wealth of information in seconds. Print will eventually become obsolete the more dependent society becomes on electronic readings. I knew I was relying on print less when I stopped buying calendars and newspapers. I pay a monthly fee to read newspaper article instead of buying newspapers. My Sunday coupons are also digital now so there is no longer a need to buy paper sand clip them. If companies with dated practices do not restructure from time to time there could be a missed opportunity to be innovative and enterprising and eventually meet the same fate of other dissolved companies.

An organization typically does a restructuring when there is a need for a change and the current method of operating is no longer feasible or effective. These restructures can often times allow a business to attain a leg up on the competition. Businesses like manufacturers and technology companies often benefit from this approach.

Let’s take for example a company like General Motors. This past year they went through a huge organizational Restructure that a lot of people did not agree with. They allowed senior members of their management staff opt-in to a buyout and closed several plants as well. The only thing that most people could look at was the loss of jobs not realizing that the company had to lean out in order to align with the new direction that the CEO was going in.

The workers from plants that were shut down were moved to plants where the demand for the product was high. This allowed GM to address another issue of staffing at these money making plants which is going to allow them to produce more vehicles and turn a higher profit.