Operational Restructuring in a Turnaround Context

Michael Fingland

Executive Director and CEO

Operational restructuring is a process of revamping an organization’s operations, processes, and procedures to improve its efficiency, productivity, and profitability. This is typically done in the context of a turnaround, when a company is experiencing financial distress and needs to restructure its operations to improve its financial performance and avoid bankruptcy.

Operational restructuring can involve a range of activities, including streamlining operations, improving supply chain management, reducing costs, optimizing inventory management, and enhancing customer service. It may also involve changes to the company’s organizational structure, such as the consolidation or elimination of business units, as well as changes to its workforce, such as layoffs or retraining.

Operational restructuring is essential in a turnaround because it helps a company to address the root causes of its financial problems and restore its profitability. By improving its operations and reducing costs, a company can improve its bottom line and regain the confidence of its stakeholders, including investors, creditors, and customers.

Moreover, operational restructuring can help a company to become more agile, adaptable, and competitive in a rapidly changing business environment. By streamlining its operations, a company can become more responsive to customer needs, take advantage of new market opportunities, and better position itself for long-term success.

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