Reorganization is not the easiest thing to do in a company.
Doing more with less. Layoffs. Pay freezes. No bonuses. Natural disasters.
In his book, Simply Effective, Ron Ashkenas, senior partner at Schaffer Consulting explores options that don't include redrawing lines and boxes.
Reorganization: Two Question to Ask Yourself
Before you decide whether or not reorganization is the right way to go, he suggests asking yourself two questions:
- What's the problem that needs to be solved?
- Is reorganization the only possible solution?
The answer to the first question isn't that easy, however. He says:
Before redrawing your organization chart, make sure you know why you're doing it. Are you trying to create a sharper focus on customers? Do you want to reduce costs? Are you struggling with performance issues? Do you have too many direct reports to give them sufficient attention? Has the structure become overly complex such that accountability is diffused? Do your people need a wake-up call?
The answers to the secondary questions will help you gain clarity on how you will answer the second question, but will also help you look for other solutions that are more aligned with the business culture, vision, and mission.
Seven Things to Consider Before A Reorganization
Ron Ashkenas suggests considering options such as:
- Different incentives for the sales team
- Creating cross-functional teams
- Breaking down silos and integrating all disciplines
- Refocusing marketing efforts
- Creating a more rigorous performance review
- Developing A, B, and C budget goals
- Sharing services across business units
Reorganization tends to be extremely disruptive and typically isn't worth the disruptions or loss of key team members.
What types of things have you considered doing before completing a reorganization?
