Navigating a Restructure of Your Business
Restructuring a business is never easy. For many business owners and managers, it’s one of the toughest decisions they will face. However, when a business is under pressure, doing the same things and expecting better results is not a strategy. A well-planned restructure can be a decisive and positive step toward securing the future of your business.
In New Zealand, restructuring is not a quick fix. It requires clear thinking, good leadership, and careful attention to employment obligations. When handled well, it can stabilise the business, reset costs, improve performance, and create a stronger platform for growth.
Why restructures matter
Businesses evolve, markets change, and economic conditions shift. A restructure is often necessary when:
The current cost structure is no longer sustainable
Roles no longer align with the direction of the business
Performance outcomes are not matching effort or investment
Avoiding change usually delays the inevitable and increases risk. Addressing issues early gives you more options and better outcomes.
Key principles for a successful restructure
A successful restructure balances commercial reality with fairness and good process. Key principles include:
1. Have a genuine business reason
Your restructure must be driven by real financial or operational needs, not personal preference or convenience.
2. Engage early and meaningfully
Employees should understand why change is being considered, what the potential impacts are, and have a genuine opportunity to provide feedback before decisions are made.
3. Use fair and objective processes
Where roles are reduced or redefined, decisions must be based on clear, measurable criteria and documented carefully.
4. Consider alternatives before redundancies
Redeployment, adjusted hours, voluntary redundancy, or role changes may provide workable solutions and demonstrate good faith.
5. Lead with empathy and professionalism
How you treat people during a restructure matters. Supporting affected staff protects morale, reputation, and trust both internally and externally.
A positive step forward
While restructures are challenging, they are often a turning point. Businesses that confront reality, adapt their structure, and reset their direction are far more likely to survive and thrive than those that hope conditions will magically improve.