Operational restructuring is a process which aims to make a company and its business model profitable by identifying which areas of the company are underperforming and how they can improve. It does not focus on a company's financial performance (apart from whether areas of the business are profitable or loss making), but instead explores how the business can return to profitability by improving its product and service offering and how it runs on a day to day basis.
A typical Operational Restructuring plan will usually look at:
- The organisation's products, services and markets and how they contribute to its profit;
- Reviewing costs against and revenues and recommending cost reductions, where appropriate;
- The best way of rationalising parts (or the entire) business to make them more efficient;
- Selling or closing down areas of the company that are underperforming or not part of core business;
- Identifying whether there are skills or resource gaps in the management team and how these can best be solved.
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