Organizational Restructuring Efforts Usually Fail
Restructuring efforts often fail to deliver hoped for results and many fail outright. A November 2016 Harvard Business Review – Getting Reorgs Right – article cited a McKinsey survey of reorganizations found that 80% of reorgs “fail to deliver hoped-for-value in the time planned and 10% cause real damage to the company.” That same HBR article listed the following reasons for why reorgs fail:
- Employees actively resist changes
- Insufficient resources are devoted to the effort
- Employees are distracted from their day-to-day activities, and individual productivity declines
- Leaders actively resist the changes
- The org chart changes, but the way people work stays the same
- Employees leave because of the reorg
- Unplanned activities disrupt implementation
It is little wonder then that leaders are hesitant to change their organization’s structure.
Why StratOp Enables Successful Organizational Restructuring
There are several reasons why companies that follow the StratOp process can restructure successfully including:
- Cross-Functional Team: A team of leaders from across the organization have participated in the initial 3-day StratOp workshop in helping to identify what must be done for the good of the organization as a whole.
- The First Three Phases of StratOp Enable Structure Review: Breakthrough insight has emerged in a sequential manner as the team first gained Perspective on the past, present & future realities of the business; through Planning the team has clarified where the business is going and how it’s going to get there; and through identifying the most important Action initiatives, the team is beginning to work on the most critical areas of the business that will drive future performance.
- Strategy First, Structure Second: One of the principles of StratOp is “Form Follows Function” – in other words, clarify your strategy first, then your structure. Given the previous phases of StratOp, a team is now in the right place and has the right amount of insight to review the organization’s Structure and make any necessary changes to support the strategy going forward. Structure should support strategy, not the other way around.
How StratOp Defines The Right Structure To Support The Strategy
In the weeks and months following the initial 3-day plan creation workshop we facilitate leadership through a series of tools to clarify the new structure required for the strategy that has emerged, with the specific tools including:
- Organizational Design: Creates an organizational structure to support the strategy of the company. Your strategic plan is the substance of needed action and change; structure is the form.
- People Placement: Because we now have an organizational structure to support your strategy, we help place your people in roles where they can work out of their talent & passion, leading them to make their greatest contribution to the company.
- Culture Management: Through operationalizing Core Values, Mission & Vision we help define, develop and defend your organizational culture.
- People Development: Since you cannot achieve a great vision & strategy without great people who are being continually developed we review & refine your employee development process.
- Systems & Processes: The Paterson Process is a systems process and we help ensure your company is managed as a system, not a collection of individual parts.
Your business is perfectly designed to get the results it is getting. How happy are you with your organization’s results? How much of less than ideal performance is due to your company’s structure?
Visit navigatethejourney.com and schedule a call with us to discuss what it would look like to install StratOp as the strategic operating system of your business.
About The Author
Tom Barrett is a Professional EOS Implementer™ and the CEO of Navigate the Journey, a Nashville based firm that helps entrepreneurs get what they want from their business and life.