Restructuring Alone Won’t Save You—A Growth Vision Will

In today’s rapidly shifting market, many companies view restructuring as the solution to short-term challenges—cutting costs, streamlining operations, and refocusing on their core business. But what happens when the real issue isn’t just fixing the present, but preparing for the future? In a time of increased competition, evolving customer needs, and shifting markets, restructuring alone may not be enough.

The question to ask isn’t just, “How do we cut costs?” but, “How do we build for the future?” Too many businesses focus on cost-saving measures without addressing the bigger question: Are we managing decline or paving the way for future growth?

The companies that successfully restructure don’t just fix what’s broken; they define a new path forward. I’ve seen firsthand why restructuring alone isn’t enough without a clear growth vision. In this article, I explore companies that navigated this challenge—two that paired restructuring with a strong growth vision, and two that failed because they didn’t.

Success Stories: Restructuring with a Growth Vision

Lego (Denmark) – From Crisis to Global Powerhouse

I remember my first Lego set when I was 10 years old—it sparked hours of imaginative play. Decades later, Lego continues to captivate my daughters, even in the digital age. This enduring appeal speaks to the strength of the brand, but in the early 2000s, Lego faced a near-collapse. Overexpansion into theme parks, video games, and niche products diluted its brand and drained profitability.

What they did right:

• Refocused on their core product—the brick—while strategically expanding into new areas like licensed sets, movies, and digital platforms

• Improved operational efficiency by cutting unprofitable product lines and streamlining production

• Re-engaged with their customer base, including adult fans and younger generations, through storytelling and innovation

The result:

Lego’s transformation turned it into the world’s top toy company, with annual revenues exceeding $9 billion. This success proves that a strong growth vision is just as critical as operational fixes.

Heritage Cereal Company (UK) – Balancing Efficiency and Brand Relevance

In the mid-2010s, I worked with a well-known breakfast cereal brand in the UK that faced declining sales and margin pressures. Consumer interest was waning, and rising input costs squeezed profits. The company needed both financial and brand renewal.

What they did right (and what I saw firsthand):

• Cost optimization: Focused on procurement and packaging efficiency to reduce costs and protect margins.

• Brand relevance: Launched marketing refresh campaigns to revive mental availability, ensuring consumers remembered and engaged with the brand.

• Commercial execution: Strengthened relationships with retailers to maximize shelf space and product placement, applying Byron Sharp’s principles of mental and physical availability.

The result:

Growth returned to the core brands - although, years since the brands once again face decline. While restructuring can provide short-term relief, brands must continue to evolve to remain relevant.

Contrasting Paths: When Restructuring Works, and When It Doesn’t

Debenhams (UK) – Cost-Cutting Without Innovation

Debenhams was once an exciting place to shop—a department store that felt aspirational for many. Over time, though, its appeal faded. The stores became outdated, and the shopping experience deteriorated, turning into a discount outlet—a shadow of its former self. Despite repeated restructuring efforts, there was no compelling vision for the future.

Why it failed:

• Missed the digital transformation: Debenhams failed to effectively transition to e-commerce, lagging behind online-first competitors

• Ineffective store closures and cost cuts: These measures weakened the in-store experience instead of reinventing it

• Lack of differentiation: In a declining department store market, the brand failed to create a unique position, losing consumer relevance

  
  

The result:

After years of financial struggles, Debenhams collapsed, with its brand ultimately acquired by online retailer Boohoo. This highlights the importance of digital transformation and forward-looking strategies in a changing retail landscape.

Quiksilver vs. Dr. Martens – A Tale of Two Brands

Quiksilver was once synonymous with the surf and skate lifestyle. But today, brands like Patagonia, Rip Curl, and Supreme have outpaced it, evolving with consumer preferences while Quiksilver failed to adapt.

What Dr. Martens did right:

• Brand modernization: Dr. Martens successfully modernized its image without losing its rebellious spirit, expanding its appeal beyond niche subcultures to a broader mainstream audience

• DTC and online sales: Instead of relying solely on wholesale, Dr. Martens strengthened its direct-to-consumer channels and online sales, reducing dependence on third-party retailers

• Maintaining premium pricing and authenticity: The brand partnered with high-end collaborators like Supreme and Comme des Garçons, keeping the brand fresh and culturally relevant

The result:

While Quiksilver faded, Dr. Martens went public in 2021 and remains culturally relevant across multiple generations. This comparison highlights the importance of evolving while staying true to your brand’s core identity.

What Quiksilver got wrong:

Despite restructuring efforts, Quiksilver failed to reconnect with younger audiences and was overtaken by more innovative competitors. It entered bankruptcy in 2015, eventually being absorbed into Boardriders Inc. This is in stark contrast to Dr. Martens, which successfully adapted and stayed relevant.

Practical Advice for CEOs and Business Leaders

If you’re considering restructuring in today’s tough economic environment, here’s where to focus:

• Ask the right question: Don’t just ask, “How do we cut costs?” Instead, ask, “If we were starting fresh today, what would we build?” If your current business wouldn’t make sense as a new venture, why continue running it the same way?

• Define your post-restructuring growth path upfront: Every decision—whether cutting costs, closing locations, or changing suppliers—should be linked to a long-term strategy that ensures your brand remains relevant and competitive

• Invest in brand equity, not just efficiency: Cost savings preserve short-term profitability, but growth comes from ensuring consumers still choose your brand. Are you making your brand more mentally and physically available, or just cheaper to operate?

• Challenge the idea that “returning to the core” is enough: Many companies believe that returning to basics will solve everything. But often, the market has moved on. A great legacy doesn’t guarantee future success—innovation does. Ensure your restructuring isn’t just about cutting back but about moving forward

• Make bold moves, fast: You don’t have to bet the company overnight. Pilot changes, launch MVPs, and test the market. If it works, scale it. If not, pivot quickly

Final Thought

Restructuring alone won’t secure the future—it’s just the first step. The real challenge is using restructuring as a foundation for building something stronger and sustainable.

The key isn’t in small, incremental changes, but in taking bold steps toward growth. CEOs shouldn’t just optimize what exists; they should create a new direction. If you’re restructuring, focus on what to build, not just what to cut. What bold move can you take today that aligns with your long-term vision? The time to act is now.