If you’re thinking about embarking on a company reorganisation, it’s worth bearing in mind that 80% of them fail to meet their objectives in the time planned. In fact, 10% of them do significant damage. Writing for Harvard Business Review, Stephen Heidari-Robinson and Suzanne Heywood offer a systematic process to make ‘reorgs’ work.
One research finding quoted by the authors is that reorganisations cause more anxiety and stress than redundancies, resulting in lower productivity in around 60% of companies.
More positively, two thirds of them do improve performance to some extent. The former chief operating officer of professional services firm Ernst & Young, John Ferraro, is quoted as saying: “Every company today is being disrupted and so must reorganise to keep up with the incredible pace of change. Those that can do this well will thrive in the current environment and be tomorrow’s winners.”