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Restructuring and Rightsizing: A Proactive Approach to a Management Challenge

 
  Arthur F. Rothberg, Managing Director, CFO Edge, LLC  
   
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  Article Summary  
Organizational change strategies such as rightsizing and restructuring are designed to transform companies into more efficient, more agile and more customer-driven organizations.

These processes have both short-term and long-term consequences, and this article looks at critical success factors that drive positive outcomes. Reviewed are areas like focusing on core competencies, labor costs, operational efficiencies and cost-benefit analysis.

Successful organizational change drives greater productivity, revenue, profits, and, ultimately, shareholder value. Balanced against these gains are required investments in engineering and implementing the changes required.

Executives and managers must be prepared to adjust, lead and motivate in ways that help employees, customers and communities join in and support the new path.

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