How to Make Reorganization the Answer, Not the Beginning of the End
There is always much fanfare when a company announces their “reorganization”. The driver is usually to improve profitability and performance. I always watch these companies to see whether they achieved that goal. Sadly, I don’t see it happen often. Why? Leaders will typically focus on a nagging internal problem such as reducing the number of their direct reports or consolidating of business units. They miss the cascading impact of the change on the people that serve clients and ultimately the clients themselves.
If restructuring doesn’t actually pave the way for better and faster decisions or put innovative ideas into practice faster, or bring talent and services to bear more seamlessly, then shaking things up didn’t accomplish anything and may have made it worse. When we work with our clients we test new ideas against what that will mean to the client or those that serve clients, first. Only then can we focus on reorganizing to solve any nagging internal issue.