The extensive regulations and levels of authority found in bureaucracies make them inefficient. Restructuring by removing layers of an organization offers an opportunity for both increasing efficiency and reducing direct labor costs. However, the organization undertaking such a restructuring needs to establish a coordinating mechanism, such as a coordinating committee, to make sure that the organization still carries out its mission. In addition, managers need to be aware that organizational reform is not always successful. To increase the chance of success, change efforts should involve participation and consultation with the organization's members. In addition, the removal of a layer from the organization's structure should take place only when the position is vacant and which coordinating mechanisms are ready for implementation. The organization's executive level must also make a sustained commitment to the change process. Figures showing sample organizational structures and 15 references.