Reorganisations are a common occurrence in businesses, yet only 23% of them succeed. A successful reorganisation can boost a company’s financial performance and market position, while a failed one can lead to a loss of productivity, talent, and shareholder value. To ensure a successful reorganisation, businesses need to focus on four key areas: setting the reorganisation’s direction, designing the reorganisation, delivering the reorganisation, and driving the performance improvement.
Setting the direction involves identifying the problems that need solving and defining the reorganisation’s scope. Designing the reorganisation requires defining the company’s structure, roles, and responsibilities. Delivering the reorganisation involves managing the transition, including communicating changes, managing talent, and mitigating risks. Finally, driving the performance improvement means ensuring the reorganisation delivers the expected benefits.
A common mistake businesses make is focusing too much on the design phase and neglecting the other three areas. To avoid this, businesses should allocate time and resources equally to all four areas. By doing so, they can maximise the chances of a successful reorganisation and avoid the common pitfalls that lead to failure.
Go to source article: https://hbr.org/2016/11/getting-reorgs-right