This article covers the six principles of successful reorganisation for any business.
- Start with the business strategy
The new organisational model should
enable and catalyse the direction of the company. If the strategy
is not clear, the organisation can't align behind it. In the
case of one of our clients, the need to move decision making closer
to consumers and markets was a clear strategic shift that prompted
other changes and discussions.
- Go further than your organisation chart
You must have the right people
sitting on the bus in the right seats in any change initiative.
However, this is not enough for success. Address your systems and
processes, decision-making authority, metrics, career paths,
policies, incentives and talent management.
- Remember, one size does not fit all
Any robust organisation model will
apply in different ways in different situations. For example,
decentralisation of a business may be the main theme but there will
also be functions and markets where centralisation will serve your
customers and the company better – particularly for a very
large organisation where you may be able to leverage your scale. If
this is the case for you, don't hesitate to make
exceptions.
- Have detailed planning pre-launch discussions to allow you to move faster later
Major changes work best when the key
stakeholders have had their chance to articulate their concerns and
when the team involved in the decision have had time to think
through the implications of the new model and establish some
guiding principles. The detail of these discussions may cause some
initial frustrations, but it will also build a sense of collective
ownership. This can then lead to the development of the road map
that will allow the company, in the long run, to run more
decisively.
- Leverage the power of the leaders
If you do not have the support of the
senior leadership of your organisation, there is a great chance of
a spectacular failure. However, verbal support is not enough. Ask
your senior leaders and an expanded group of senior managers to be
involved in hammering out the details of the new model to keep it
moving forward. Involve executives in all major proposed changes,
for example by critiquing the changes and keeping them on track,
and talking them through with other executives who might be
affected.
- Expect a multi-year journey
Even the best-planned changes will
require some course correction, and some will work best if done in
phases. Once the new organisation structure is in place and
working, shift attention to building high-performing teams.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
