Tips and Answers to Your Questions
Deciding to Restructure

Roadblocks in Strategic Restructuring

We have identified three primary factors that can threaten the success of a strategic restructuring effort.

Autonomy

Autonomy is very valued in the nonprofit sector. In organizations where there is too much work and too little compensation, independence is key. A restructuring effort can threaten the independence of an organization as it faces the possibility of new staff and board members. Additionally, most organizations are founded and often continue to be managed by a small group of people who may feel threatened by the thought of losing control if they undertake some form of restructuring.

Self Interest

Staff and board members will feel threatened by a strategic restructuring effort, whether they feel that their jobs are at risk or the cause they have personally championed will no longer be theirs. This is neither inappropriate nor unethical, but it will have to be addressed, so as to ensure that the effort is not undermined in anyway.

Culture Clash

Often underestimated, organizational cultural differences can destroy a restructuring effort. Great pains will have to be taken to make sure that staff and board members do not feel that their values and ways of doing things are not being overlooked in the restructuring process.