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When Reorganization Works
Reorganization is a powerful tool when a company adopts a new strategy, incorporates an acquisition, or simply aims to improve productivity. Although employees and managers often resist change, a successful reorganization can imbue them with a common sense of purpose. But reorganizations frequently fail, even when they draw on proven principles of organizational design.
The take-away: Reorganizations succeed when they build on simple and motivating business ideas, are well-timed, and face social realities. Only when these three conditions have been met should top executives begin drawing up and testing the options for a new organizational design.
Articles provided by The McKinsey Quarterly
© 1992-2003 McKinsey & Company, Inc
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