| | 10
Keys to Successful ReorganizationsIn recent months, we've been
supporting a number of large reorganizations for both our public and private sector
clients. These initiatives always challenge us to bring together the
best of our coaching, organizational development, and strategy consulting expertise
— because while there are many general principles and management theories
for successful reorganizations, there are few practical roadmaps or frameworks
for day-to-day execution. So to help fill this gap, we have developed a set of
critical success factors to consider in designing and implementing this
kind of large-scale change. In particular, these success factors are intended
to provide a link between the theory of high-performing teams, and the reality
of leading and managing a large and dynamic organization through the turbulent
and difficult process of transformation. So although you may find some to be self-evident,
ask yourself how much time and effort is truly dedicated to each as part of your
reorganizational initiative: 1. Clarity of Mission.
Any large-scale change initiative must begin with a clear understanding of the
overall mission. Changes in mission or priorities are often what drive the need
to reorganize, so leaders must make sure to clearly articulate the what
and why, at all levels of the organization. When successful, clarity in
the overall mission creates a common purpose, which is an essential
component to building and sustaining a high-performance team. The development
of a vision, strategy, and mission statement — usually part of a strategic
planning process, is a prerequisite to any reorganization. But even the perfect
strategy will fail if the entire organization is not clear as to what it means,
or why reorganization is necessary to achieve it. Clarity means that the
team not only understands the big picture, but also how it relates to them in
day-to-day execution. 2. Leadership Alignment. The
leadership team drives the planning process, and makes key decisions about the
organizational structure and related personnel decisions. As a driver of the overall
process, it is critical that this team is 100% aligned to the overall goals and
objectives of the effort. This means much more than a “nodding of heads”
at the end of the planning and design effort. Unless proactive steps are taken
to ensure that unspoken issues and personal incentives do not conflict with organizational
goals, it is an all but guaranteed certainty that one or more of the team members
is not truly “aligned” with the rest of the team. 3.
Measures for Success. Much has been written (and done) regarding the establishment
of performance measures, and in creating outcome-based organizations. Leaders
in the midst of large-scale transformation efforts must think the same way —
how do I measure success? And in particular, how do I create a “balanced”
set of measures to incentivize the right behaviors as we transition to the new
organizational paradigm? These measures must cut across financial, customer, process,
and organizational systems, while also aligning with the overall mission —
no easy task. And beware the trap of too many measures; just a handful of key
measures should be capable of answering the question, “I know that we've
been successful when…” 4. Process Optimization.
Aligning processes to the new organizational design is an enormous component to
the overall effort. Both government and industry have been engaged in business
process improvement for many years — whether inside or outside of a reorganization
initiative. But improving specific processes is only part of the overall optimization
effort. These new processes must also gain buy-in from the people and teams that
will make them work. Specifically, leaders should ensure that key players and
influencers, at all levels, are involved in the process redesign effort, and that
the effort includes both process stakeholders and third-party/neutral players.
5. Cultural Transformation. Organizational culture plays a critical
role in either facilitating or inhibiting most change initiatives. The culture
of an organization, however, is often an elusive concept, and difficult to measure
in concrete terms. In fact, large organizations may actually have multiple “types”
of cultures — especially when they have operated for years with multiple
stovepipes, each with a different set of personalities and/or leadership styles
at the top. Research by Cameron and Quinn (2000) identified four different types
of organizational cultures: Clan, Adhocracy, Market, and Hierarchy. Leaders of
large scale organizational change must understand the type of culture(s)
they are dealing with, and the implications for effecting change. The means to
implement change in an Adhocracy, for instance, would most likely fail in a Hierarchical
culture. By identifying and understand the current culture, leaders can proactively
develop a strategy and approach for the reorganization that will both support
and facilitate change. 6. Human Capital Development.
Most reorganizations include new leadership — or at least existing staff
taking on different or larger roles on the team. As the new strategy and/or mission
begins to take hold, and the organization “settles in,” you will no
doubt find that there are individual needs for the development of both technical
and leadership skills. In a relatively new organizational structure, however,
it can often be difficult to prioritize these efforts, and to see where to get
the best “bang for the buck.” In this type of situation, it's important
to understand which gaps in skills or leadership competencies are having the largest
impact on mission execution and/or achieving the long-term strategy.
Leadership
development has come a long way from the days of cookie-cutter training programs
and one-day leadership seminars. Sophisticated and clinically-validated tools
for executive assessments are now available. And, proven and highly-tailored developmental
programs, like individual executive coaching, can also be very effective. Just
be sure that these efforts are aligned with the long-term business objectives,
and that the focus is consistent with the leadership skills and competencies most
needed in the new organization. 7. Fostering Partnerships.
Very few (if any) organizations remain “self-contained” — in
the sense that they execute their mission without the support of external entities.
Whether this support is in the form of administrative functions (such as financial
or HR), or areas related to core mission execution, leaders must ensure that key
external stakeholders understand and support the what and why of
the reorganization itself. As the reorganization effort is launched, ask yourself,
“how many people from outside this organization will be involved in the effort,
and in key decisions along the way?” Customers and business partners will
have valuable insights from their side of the fence. 8.
Early Wins. It's amazing what a few early victories can do for organizational
morale, and for the willingness to push forward in the midst of a painful transition.
These can certainly be organizational wins — but don't be afraid to devise
some “personal” wins for key players in the organization. Most organizations
have informal leaders among the rank and file — people without the leadership
title, but with enormous influence gained though a combination of (usually) longevity,
personality, and integrity. When these folks are speaking in positive terms about
the reorganization and its long-term benefits, you can bet that others are listening.
9. Effective Communication. All of the efforts
to drive change will ultimately fail without a robust communications strategy.
This will involve an in-depth stakeholder analysis, message development, identification
of delivery channels, and a wide range of other components. For even a medium-sized
effort, this is a significant and critical task. Be sure that each phase of the
communication plan launches before the next announcements for the reorganization
happen — otherwise you'll be playing catch up from day one. It's much easier
to set the right message when you don't have to continuously “fix” persistent
misperceptions. 10. An Integrated Approach. Last,
but certainly not least, is the need for an integrative approach to the overall
reorganization effort. This means that you can't have a team go off and “design”
the communication plan separate from understanding the measures of success, or
from understanding the linkage to the overall strategy and mission. Effective
communication plays a role here, but other techniques can also be effective. As
an example, success measures that can only be met when teams work together are
a good way to seed an integrated approach. Summary
Clearly there
are many other factors that contribute to the long-term success of large reorganizations.
In our experience, however, these ten are often at the heart of the challenges
that leaders face. Our comments here are obviously far from exhaustive —
the intent is to simply provide a starting point for insights that can be internalized
and then turned to lasting organizational advantage. We hope you find them
valuable. © 2006 Suntiva, LLC. All rights reserved.
©
2005 Suntiva LLC. All rights reserved. | |
