Why companies must keep reorganizing

16 Aug '07

2 min read

• Absence of employee engagement.
• Organizational inability to change to meet new strategic or operating needs.
• No set process for continuous improvement.
• Key stakeholder requirements are unmet.

Other suggestions to improve organization design capability:
• Become competent in organization design. Since organization design is a constant (requiring perpetual redesign), companies that do it well make it a core competency for their line managers.
• Encourage dialogue regarding organization design among all stakeholders so they understand how the elements of an aligned, flexible design can improve the performance of organizations, teams, and individuals.
• Fix the right problem. Careful diagnosis of issues leads to good design recommendations.
• Select leaders with the skills, attitudes and competencies required to operate effectively within a new organization design.
• Resist the temptation to introduce organizational practices used by others into your company. The alignment of many design choices has greater impact on an organization's success than a handful of “best in class” but misaligned choices. What other companies do informs – not necessarily answers – how management should resolve a design issue.

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