A Tale of Two Operating Models
Different situations require different approaches to restructuring
Restructuring your company’s operating model is a powerful way to reduce costs and improve business performance. But the right approach to restructuring depends on your situation.
- Event-driven restructuring revolves around an event such as a business crisis or merger, so time is of the essence. You need to take action as quickly as possible, even if things aren’t perfect or you make a few mistakes. This type of restructuring tends to be more top-down and directive.
- Performance-driven restructuring is motivated by your company’s own initiative and desire to improve, so you can afford to be more deliberate and thoughtful. You can carefully analyze the situation, weigh the costs and tradeoffs, pilot a number of options and take time to build consensus.
This article is the first in a three-part series about operating model restructuring. It provides an overview of the two distinct approaches to restructuring, and offers practical and proven advice to help you get started down the right path. Later articles go into more detail about each individual approach.
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