The Difference Between Organisational Restructures and Organisational Design: Achieving Sustainable Change

In today’s rapidly evolving business landscape, companies often face the challenge of rethinking their organisational structures. When a business is under pressure to cut costs or optimise its operations, the natural instinct is to focus on organisational restructuring. However, there is a significant difference between simply reorganising the structure to achieve cost savings and designing a strategic organisation that supports long-term growth and adaptability.

At Adeptli, we often hear the phrase “moving the deckchairs around” when referring to organisational restructures. This metaphor highlights the common misconception that organisational change is just about drawing new boxes on a page and shifting roles around without considering the broader business context. While a restructure may result in immediate cost savings, it often fails to address the core issues that a business needs to solve. In contrast, organisational design takes a more holistic, strategic approach to ensure that the business is equipped to adapt to shifting market conditions, evolving customer needs, and changes in the competitive landscape.

The Cost-Saving Bias in Organisational Restructures

Organisational restructures are often driven by a desire to cut costs, and understandably so—businesses need to be financially agile to stay competitive. However, when cost savings become the sole focus of a restructure, the process can become a short-sighted solution that neglects the deeper strategic requirements of the business.

In a typical restructure, the immediate aim is often to reduce headcount, eliminate redundancies, or streamline operations to improve profitability. This leads to an approach where departments are downsized, roles are eliminated, and the existing organisational structure is re-mapped to reflect a more “efficient” arrangement. While this approach may lead to cost reductions, it’s usually just a reaction to financial pressures rather than a well-thought-out strategic decision.

The problem with this approach is that it often results in a structure that may not be fit for purpose. Without taking into account broader factors such as changes in the operating model, shifts in customer needs, or cultural challenges, businesses end up with a structure that may save money in the short term but fails to support the organisation’s long-term growth and strategy.

Organisational Design: A Strategic, Sustainable Approach

Organisational design, on the other hand, is about creating a structure that is strategically aligned with the business’s goals, operating model, and market demands. While cost savings may still be an outcome of an effective organisational design, it’s only one piece of the puzzle. The primary focus is on designing a sustainable structure that enables the business to thrive in a rapidly changing environment.

At Adeptli, we believe that organisational design is about more than just "moving the deckchairs around." It’s about understanding the factors that drive the business and aligning the structure to meet those needs. Instead of focusing solely on short-term financial gains, organisational design focuses on creating a framework that supports the long-term goals of the business, including:

• Business Strategy: The design must reflect the overall direction of the business. Whether it’s expanding into new markets, launching new products, or increasing operational efficiency, the organisational structure should enable the business to execute its strategy effectively.

• Operating Model: Organisational design should align with the business’s operating model, ensuring that the structure facilitates the right workflows, processes, and decision-making. A well-designed organisation will support better collaboration and more efficient operations, even if it means reallocating resources or redefining roles.

• Shifting Economic Landscapes: The business environment is constantly evolving, and organisations must be agile enough to respond to changes in the economy, technology, and competition. Organisational design enables businesses to build flexibility into their structure, making it easier to adapt when the market changes.

• Customer Needs: Organisational design must take into account the needs of the customers. The right structure ensures that the organisation can respond quickly to changing customer demands, whether that’s by improving service delivery, enhancing product offerings, or driving innovation.

• Cultural Challenges: Organisational design also addresses cultural challenges, ensuring that the business can build a healthy, aligned culture that supports collaboration, diversity, and employee engagement. A well-designed organisation considers how teams work together and how values are reflected in day-to-day operations.

• Talent Demands: Finally, organisational design needs to account for the current and future talent demands of the business. It’s about building a structure that enables the attraction, retention, and development of the right talent to support the organisation’s growth and innovation.

Why Organisational Design Is More Than Just Cost Savings

While a restructure may be motivated by cost-saving objectives, organisational design takes a more comprehensive approach. Rather than focusing solely on eliminating costs, organisational design ensures that cost-saving measures are achieved in a way that supports the business’s long-term sustainability. This means aligning the structure with strategic goals, fostering collaboration, improving efficiency, and adapting to external factors like customer needs or market changes.

A well-executed organisational design process enables businesses to achieve:

• Sustainable Cost Savings: Cost reductions are realised in a way that doesn’t compromise operational effectiveness or long-term viability. By aligning the structure with the business’s needs, you avoid unnecessary redundancies and inefficiencies while ensuring that the business remains competitive.

• Improved Flexibility and Agility: Organisational design creates a flexible structure that can respond quickly to changes in the market or customer needs, giving the business a competitive edge in a rapidly evolving environment.

• Alignment with Strategic Objectives: Organisational design ensures that the structure supports the business strategy, enabling the business to achieve its goals and objectives more effectively.

• Stronger Culture and Employee Engagement: A well-designed organisation is one that creates an environment where employees are aligned with the organisation’s vision, motivated to contribute, and empowered to do their best work.

The Adeptli Approach: Creating Organisational Design for Long-Term Success

At Adeptli, we believe in taking a strategic, thoughtful approach to organisational design that goes beyond just short-term cost savings. Our focus is on designing organisations that are built for the future—organisations that are agile, efficient, and aligned with both the internal and external factors driving change.

Whether you’re undergoing a restructure to address cost savings or responding to shifts in your industry, we work with you to design a structure that supports your long-term goals. We ensure that your organisational design is not just a response to financial pressures but a proactive strategy that positions your business for future success.

If you're ready to rethink your organisational structure and focus on sustainable, strategic design, get in touch with Adeptli today. Let us help you build the right framework to achieve your goals and drive lasting growth.