Shaking Up Change

Turn reorgnisation on its head

Turn reorganisation on its head

Organisations can often become victims of their own success. In an era when everything is changing, evolving and mutating at an increasing rate, what worked for decades does not necessarily work any more. Companies in the consumer sector have to remain competitive or go under rapidly. And they know this. In the past 5 years, 60% of the S&P 500 companies have undergone major reorganisation and cost-cutting exercises.

Weathering this change is difficult, and even change management is constantly undergoing change. The ‘rules’ need to be rethought, according to McKinsey’s Camilo Becdach, an associate principal in McKinsey’s Southern California office; Shannon Hennessy, a principal in the Dallas office, and Lauren Ratner, a specialist. The authors of ‘Rethinking the Rules of Reorganization‘ say there are five basic things to consider:

  1. Shake up the core of the organisation
  2. Play favourites
  3. Ask for bad ideas
  4. Move beyond beyond benchmarks
  5. Skip meetings and stop writing reports

If this all sounds counterintuitive, read more about how the McKinsey people view reorganisation and how it should be tackled going forward.