Reorgs - KeynesYouDigIt/Knowledge GitHub Wiki

5 Step Process

1. Develop a Profit & Loss Statement

  • A reorg is just another business initiative
  • Define the benefits, costs, and time to deliver
  • Include human costs

2. Understand Current Weaknesses & Strengths

  • Figure what isn't and isn't working, and why
  • Actually ask people, don't just assume you know

3. Consider Multiple Options

  • Prefer small changes, such as removing a management tier or integration one function
  • Don't focus on what the organization looks like (reporting structure), but how it works
  • Having multiple options forces you to evaluate strengths and weaknesses

4. Get the Plumbing and Wiring Right

  • Understand job descriptions, metrics, targets, IT changes, etc. ahead of time
  • Put leaders in place first

5. Launch, Learn, and Course Correct

  • Make corrections as needed
  • Don't be afraid to reverse something that doesn't work

Why Reorgs Fail

  1. Employees actively resist the changes
  2. Insufficient people, time, and money are devoted to the effort
  3. Employees are distracted from their day-to-day activities, and individual productivity declines
  4. Leaders actively resist the changes
  5. The org chart changes, but the way people work stays the same
  6. Employees leave because of the reorg
  7. Unplanned activities, such as an unforseen need to change IT systems or to communicate the changes in multiple languages, disrupt implementation