My friend, this is a tough situation, and the MD has to support you all the way. To start, you have to come up with a tree-structured organization chart showing the positions only and which position reports to which position. Remember not to fit any names into the boxes yet. Next, do a job analysis for each position and then conduct a manpower skills audit for all your staff. Match the positions with a candidate with the rightful skills and experience, and place names into the positions.
Remember, this is quite an expensive project, and you must have a budget to run with it, and to deal with excess staff that you have to let go on mutual separation agreements if they do not fit into the new structure. It does not have to be a one-off stance; you have to take it step by step, maybe department by department, reviewing and studying the results so that you can adjust undesirable outcomes in the next steps.
Zero-based Restructuring
This process is called Zero-based restructuring. Try to do some research online to find out more about it. We have been working on this with our company since 2009, and we are not yet finished. We are still dealing with voluntary retrenchment costs and with staff costs from die-hard staff who do not want to make a mutual separation settlement.
Wishing you luck,
Regards,
Edson