operational restructuring

It is a process which aim is to detect the causes of the company`s operational underperformance, to redesign its strategy and to control its proper running.

This concept has historically been associated with the idea of rescuing the enterprise in a situation of either bankruptcy or insolvency, by decreasing the general expenses of the society. But in reality, an operational restructuring involves checking a wide range of elements:

redefining the strategic goals and objectives and the core business, make an expenditure rationalization, execute a right-sizing of the company, perform a cash management and eventually, optimize the resources.

The first step to achieve a successful OR is to carry out a SWOT analysis to evaluate the strengths and weaknesses of the firm and the opportunities and threats of its environment. Afterwards, it is time to figure out where the resources are being wasted, so this expense can be reduced to the minimum, and the consequent savings assign to deficit areas.