ReOrgs

https://hbr.org/2020/08/7-strategies-for-leading-a-crisis-driven-reorg

What is motivating ReOrg ?

  • Current Goals not met ?
  • Cost cutting ?
  • Fast growth ?
In the organizations we work with, governance design — which defines who gets to make decisions and allocate resources — is often too complicated or unclear to be effective. For a strategy to be successful, those closest to the most relevant information, budgets, and problems are the best equipped to make decisions. When leaders have proximity to an issue but no authority, authority without the needed resources, or control of the budget but not the people, the decisions tend to follow hierarchical lines. These decisions made at the top may be strategically sound but impossible to implement given how far away they’re made from those who must actually execute them
 

this article talks about a simple 5 step process to run a re-org

  1. make profit and loss statement : start by documenting benefits & time to deliver
  2. understand the current weakness and strengths 
  3. consider multiple options before finalizing one
    1. by functions 
    2. by georgraphy
    3. by customer segment 
    4. acquisition
  4. get plumbing and wiring right (toughest part)
    1. Understand what all need to be changed and in right order
    2. cr8 new JD b4 they can be filled 
  5. Launch Learn & Course Correct 
  • A strategy is a plan to create value
    • value for customers , investors, employees , suppliers
  • the way a company plans to create that value. that is the strategy
  • strategy does not begin with profit.






Willingness to sell is less intutive






LEFT




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