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Restructuring

A restructuring is one of the most powerful – and most sensitive – tools an organisation has to adapt to new conditions. When done well, it creates clarity, focus, and the ability to deliver on strategic objectives. When done poorly, it risks creating uncertainty, loss of critical competence, and diminished trust. That is why restructuring is not only about structures and roles, but about people, culture, and leadership.

Are you facing a restructuring?

At its core, a restructuring is a strategic decision: what do we need in order to succeed going forward? When that answer is clear, it becomes possible to design an organisation that supports the direction – with the right capabilities, clear accountability, and conditions for effective collaboration. But the process also requires an understanding of risks, consequences, and empathy. Leaders must communicate clearly, manage uncertainty, and at the same time keep focus on the bigger picture.

This involves creating a clear future state, understanding the consequences, engaging with employee representatives, matching competence to future needs, and – when required – carrying out redundancies in a dignified and professional manner.

1. Purpose – the foundation for all decisions

Every restructuring must start with a clear and well-articulated purpose. This means understanding why the change is necessary and what it is intended to solve. Is it driven by changing market conditions, efficiency requirements, new strategic priorities, or a shift in required capabilities? A strong purpose provides direction, legitimacy, and psychological safety. It enables leaders to communicate consistently and helps employees understand the context. Without a clear “why”, the process risks being perceived as arbitrary or reactive. A well-defined purpose therefore acts as both a compass and an anchor throughout the change journey.

2. Target operating model and organisational design

Once the purpose is clear, the future state must be defined. How should the organisation function after the change? Which roles are needed? What capabilities are critical? How should accountability, decision-making authority, and collaboration be designed? Organisational design is not about drawing boxes – it is about creating the conditions for performance, innovation, and long-term sustainability. A strong target operating model is concrete, understandable, and clearly linked to the organisation’s strategy. It enables fact-based decisions on roles, staffing, and priorities, and creates a shared understanding of where the organisation is heading.

3. Impact analysis and union consultation

Before decisions are finalised, the organisation must understand the effects of the change – on operations, customers, the work environment, and employees. Impact analysis is both a leadership tool and a legal requirement. In Sweden, dialogue with employee representatives is central. Through consultation and negotiation under labour law, the employer informs and discusses the proposed changes. This creates transparency, reduces risk, and strengthens trust. A thorough impact analysis combined with respectful union dialogue is essential for a sustainable and legitimate process.

4. Competence matching and redeployment assessment

When the new organisation is decided, existing competence must be matched against future requirements. This involves assessing which roles remain, which are removed, and what capabilities are needed going forward. The assessment must be objective, fact-based, and well documented. Redeployment assessments are a key part of labour law obligations – the employer must investigate whether alternative roles are available. This step requires both structure and judgement, balancing organisational needs with individual rights and opportunities.

5. Redundancies – a test of leadership

When redundancies are unavoidable, they must be handled with professionalism and respect. Redundancies due to lack of work require clear processes, correct documentation, and objective criteria. Equally important is the human perspective. A redundancy conversation must be clear, dignified, and empathetic. The individual needs time to process the message, understand next steps, and access support. Outplacement support, coaching, and practical assistance make a significant difference – both for the individual and for the organisation’s culture. How redundancies are handled will affect trust long after the process is completed.

Questions & answers

  1. Does a restructuring always lead to redundancies?
    No. Many restructurings focus on clarifying roles, reallocating responsibilities, or strengthening collaboration. Redundancies only become relevant when there is a genuine lack of work.

  2. How long does a restructuring take?
    It varies, but a serious process requires time for analysis, dialogue, consultation, and implementation. Rushed restructurings often create more problems than they solve.

  3. What is the most common mistake?
    Starting with structure instead of purpose. When organisations jump straight to organisation charts, they lose direction, alignment, and legitimacy.

  4. How should communication be handled during the process?
    Clearly, consistently, and frequently. Saying “we don’t know yet” is better than silence. Transparency builds trust, even when messages are difficult.

  5. How can employees who are affected best be supported?
    By combining clarity with care. Provide information, allow space for reactions, and offer professional support for the next step.

Contact us

Contact us if you are facing a restructuring and need: