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Most executives will lead or be a part of a reorganization effort (a reorg) at some point in their careers. And with good reasonÂreorgs are one of the best ways for companies to unlock latent value, especially in a changing business environment.
But everyone hates them.
No other management practice creates more anxiety and fear among employees or does more to distract them from their day-to-day jobs. As a result, reorgs can be incredibly expensive in terms of senior-management time and attention, and most of them fail on multiple dimensions. Itâs no wonder companies treat a reorg as a mysterious process and outsource it to people who donât understand the business. It doesnât have to be this way.
Stephen Heidari-Robinson and Suzanne Heywood, former leaders in McKinseyâs Organization Practice, present a practical guide for successfully planning and implementing a reorg in five stepsÂdemystifying and accelerating the process at the same time. Based on their twenty-five years of combined experience managing reorgs and on McKinsey research with over 2,500 executives involved in them, the authors distill what they and their McKinsey colleagues have been practicing as an Âartâ into a Âscienceâ that executives can replicateÂin companies or business units large or small.
It isnât rocket science and it isnât bogged down by a lot of organizational theory: the five steps give people a simple, logical process to follow, making it easier for everyoneÂboth the leaders and the employees who ultimately determine a reorgâs success or failureÂto commit themselves to and succeed in the new organization.
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