general

definition of restructuring

The concept of restructuring is a fairly abstract concept that refers to the rearrangement, reorganization or modification of certain types of structures in specific areas and spaces.

Modification or reorganization of a structure with the intention of introducing performance improvements

To start talking about what restructuring means, we must first clarify what is meant by structure.

What is a structure?

A structure is an organized and hierarchical system of elements, ideas, notions, people, etc. In the structure we find different levels of hierarchy or relevance and, most importantly, connections and interconnections between all the parts that make up the whole. If these parts were not connected to each other, instead of having a structure we would have a list of elements, for example, a union structure represents hierarchies of power.

Restructuring is nothing more than the rearrangement or reorganization of an existing type of structure that had to be changed or altered due to different circumstances.

A restructuring aims to generate this alteration to observe, for example, new or different results from those that have been observed up to now. Restructuring is in most cases something that is done voluntarily and planned accordingly to the observation of the final results. However, on many occasions restructuring may appear as the only possible response to vicissitudes or external factors that influence the system.

Main applications

As the concept of restructuring is an abstract concept, it can have many different meanings and applications. Thus, for example, a restructuring can occur within an institutional hierarchy such as the police: restructuring means changing the hierarchies, positions and places of the members that make up that institution in order to obtain different results. When we speak of forced restructuring, we can give as an example the change of leadership of a type of public institution in the face of events that require it, such as an avoidable tragedy or an act of corruption.

The same thing that we talked about the police can be applied in a company, modifying for example some jobs, eliminating some areas that do not work, making castles with the personnel, among so many options.

In politics, it is in another of the contexts in which restructuring may be very necessary at some point and the opportunity to, for example, give new air to a government management.

It is known that when a government presents problems in its management, either due to the implementation of ineffective policies, or because one of its members has been involved in controversies or scandals, restructuring comes.

The Prime Minister, the President, for example, usually carry out the restructuring of their cabinet when public opinion demands it through the separation of conflicting ministers, by other leaders or professionals who promise to improve the panorama of the sector in crisis because they have suitability and because they are also not related to the conflict.

This usually gives air to the government and allows it to relax the climate.

Now, we must say that normally restructuring is carried out with the mission of modifying something because it does not work in the way in which it was expected or because other results are sought.

In other words, it is difficult to consider a restructuring in some structure or system that works like a charm.

As a popular saying goes, when something works well, why should we change it and risk losing success.

This action is almost always proposed when something is not going well.

Although normally it is the leaders or bosses who propose the restructuring, because they are precisely the highest authorities and responsible for the structures in question, it can also happen that not even they find the return to successful change and then it is also common that they are summoned to an outside professional to carry out the restructuring.

Always based on a previous study that will be carried out on the structure and which will result in a complete report in which those issues that demand yes or yes the change to obtain the benefits or the successes are identified.

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