In Brief
The Problem
Companies must reorganize periodically to keep pace with changes in market conditions. But executives grapple with conflicting advice about whether, when, and how to do so.
The Research
The term “reorganization” encompasses two distinct change processes: restructuring and reconfiguration. Each delivers value if pursued in the right way. Over the past three decades, the authors have examined how each type affects organizational processes and performance.
The Recommendation
To choose the right reorganization at the right time, follow these guidelines: Tailor the reorg to your circumstances, change at the right pace, play to your strengths, and determine what other systems need to change, too.
To cope with ever-changing market conditions, companies often have to reorganize. But leaders tend to get conflicting advice about when and how to do so. Does the company need a new structure, or should it tweak the existing one? Will the benefits of a reorg outweigh the costs? Can the work be accomplished before conditions change again? How far should the changes go?
