The Core Elements of an Effective Consulting Approach

An effective consulting approach in organisational restructuring is built on a few core elements. These elements make possible a holistic view covering both the technical and human dimensions of restructuring. Each of these elements responds to a different dimension of restructuring; and when they come together, they take restructuring out of being a superficial change and turn it into a process that truly transforms the organisation. The following headings summarise the cornerstones of this approach:

•     Objective and holistic diagnosis: An effective restructuring begins with an objective diagnosis of the organisation's current situation. This diagnosis must cover not only the organisation chart, but also the processes, culture, and internal dynamics. A consulting view from outside makes visible the realities obscured by internal habits. A view from within often cannot evaluate the current structures objectively, because it is a part of them.

•     Future-oriented design: Restructuring should aim, beyond remedying the problems of the past, to prepare the organisation for the future. An effective consulting approach designs the new structure according not only to today's needs, but to future growth and change scenarios. A restructuring that focuses only on current problems can soon become outdated again.

•     Placing the human dimension at the centre: The success of restructuring depends largely on employees' alignment with the new structure. For this reason, the human dimension should not be left to the end of the process, but placed at the centre of the design from the outset. Even the most perfect structural design remains on paper as long as it is not adopted by employees.

•     Focus on feasibility: Even the best design is worthless if it cannot be implemented. An effective consulting approach designs the new structure in a way compatible with and applicable to the organisation's real capacity. An ideal but inapplicable structure brings the organisation disappointment rather than benefit.

The coming together of these elements turns restructuring from a superficial structural change into a process that truly transforms the organisation. These elements complement one another: an objective diagnosis forms the ground for a future-oriented design; placing the human dimension at the centre secures the feasibility of the design. This holistic approach turns restructuring into a process that creates real value for the organisation. But implementing these elements brings its own distinct challenges.

Challenges Frequently Encountered in Restructuring

Organisational restructuring is, by its nature, a challenging process. Recognising these challenges in advance allows organisations to turn them into manageable phases. One of the most frequently encountered challenges is the disconnect between diagnosis and implementation. In many restructuring processes, a comprehensive analysis is made and a detailed new structure is designed; but when the capacity or determination to bring this design to the field is lacking, the process remains on paper. This disconnect is the most common cause of restructuring failure. Even the best-designed new structure remains merely a report without a leadership capacity to bring it to life.

The second challenge is the resistance the human dimension creates. Restructuring directly affects employees' roles, statuses, and the attachment they form to the organisation. This effect can create a natural unease and a resistance to change. Managing this resistance constructively is one of the most critical skills of restructuring. An important distinction comes into play here: resistance is different from resilience. The aim is to reduce employees' resistance to change while strengthening the organisation's resilience against uncertainty. Resistance is a reaction that slows change; while resilience is the capacity to remain standing and adapt in the face of uncertainty. Evaluating the management of this human dimension in periods of uncertainty together with our article on interim leadership as the approach that gives direction in times of uncertainty provides a holistic view.

The resistance the human dimension creates can often also be read as a source of information. The resistance employees show sometimes points to a problem overlooked in the restructuring design or an unresolved concern. An experienced consulting approach, rather than suppressing this resistance, listens to it and tries to understand the real cause beneath it. This approach both reduces resistance and strengthens the restructuring design with employees' feedback. Seeing resistance not as a threat, but as a feedback mechanism, is the most mature way of managing the human dimension of restructuring.

The third challenge is preserving the process's momentum. Restructuring is often a long process, and a period of stagnation can occur after the initial excitement passes. In this period, leadership keeping the energy alive and showing concrete interim wins is critically important so that the process does not stall halfway. The long-drawn-out nature of restructuring can deplete the energy of employees and leadership over time; for this reason, a conscious approach that will preserve the process's momentum is necessary. Concrete interim goals and visible wins are the most effective tools in preserving this momentum.

Consulting Approach with Implementation

The strongest approach to organisational restructuring runs through integrating the analytical strength of consultancy with the determination of implementation. In the traditional consulting model, the consultant makes a comprehensive analysis and designs the new structure; but implementation is left to the organisation's own teams. This model works in situations where the organisation has a strong implementation capacity. Yet in complex and sensitive processes such as restructuring, this model often deepens the disconnect between diagnosis and implementation. Because restructuring requires not only a design, but also a determined leadership that will bring that design to life with precision.

The integrated approach removes this disconnect. In this approach, the experience that designs the restructuring also combines with the leadership that brings it to the field. Interim management assumes a critical role complementing consultancy precisely at this point: it does not merely design the new structure, but actually brings it to life, directs the team, and carries the responsibility for implementation directly. This combination prevents restructuring from remaining on paper. We examined in detail this integrated relationship between consultancy and interim management in our article on the fine line between management consultancy and interim management.

Another advantage of this integrated approach is that it offers objectivity and continuity together. While the consulting view from outside designs the restructuring independently of internal political balances, the same view also managing the implementation ensures full consistency between design and implementation. In the traditional model, a disconnect often forms between the consultant who makes the design and the internal team that carries out the implementation; the logic behind the design can be lost at the implementation stage. In the integrated approach, on the other hand, since the experience that makes the design also manages the implementation, this disconnect disappears and restructuring is brought to life both objectively and decisively.

The third advantage of the integrated approach is the flexibility of the process. Restructuring can, by its nature, encounter unforeseen developments; a problem not foreseen at the design stage can emerge at the implementation stage. In the traditional model, this kind of problem requires the consultant to step in again and revise the design; this, in turn, leads to valuable loss of time. In the integrated approach, on the other hand, since the experience that makes the design is already in the field, it can respond to such problems instantly and flexibly. This flexibility makes it possible for restructuring to adapt to changing conditions and increases the probability of the process's success.

Another important dimension of the integrated approach is that it secures sustainability. Since interim management's assignment period is defined, the restructuring becoming lasting in the organisation is planned from the outset. The interim manager does not merely bring the restructuring to life; they also provide the knowledge transfer and capacity development needed for the new structure to be sustained by the internal team. Thus, restructuring continues to live even after the interim manager departs. This sustainability is one of the most important elements distinguishing the integrated approach from the traditional consulting model.

As E&E Group Interim, we believe that the success of organisational restructuring lies in the integration of the analytical strength of consultancy with the determination of implementation. With our network of verified senior leaders and our international Valtus Alliance partnership, we both design your organisation's restructuring process objectively and bring it to the field with determination. To shape your restructuring in a way that will carry your organisation to a stronger future, you can get in touch with us.