During economic uncertainty, restructuring is common. While most leaders agree that structure should follow strategy, few have a process for moving from strategy to restructuring. With or without a strategic framework, restructuring goes on. As a result of not basing restructuring decisions on a clear strategy, few restructuring efforts involving downsizing ever improve profitability, even in the short-term. Worse, most managers in these firms fear the long-term viability has been jeopardized.
The following story is one we encounter far too often.