Making Sense of Change Management by Cameron Esther & Green Mike

Author:Cameron, Esther & Green, Mike [Cameron, Esther]
Language: eng
Format: epub
Publisher: Kogan Page
Published: 2015-03-02T16:00:00+00:00

Figure 6.2 A generic approach to restructuring

Strategic review and reasons for change

Any attempt to restructure needs to have a clear communicable rationale. This will typically come from a review of strategy that highlights the need to address a specific issue relating to the internal or external business environment. In the CIPD research cited above, restructuring was often undertaken to improve customer responsiveness, gain market share or improve organizational efficiency. Key drivers in the private sector were ‘typically performance declines, mergers and acquisitions and a change of chief executive. In the public sector, key drivers are the need for new collaborations and legislative and regulatory change, though chief executive changes are again important.’

Critical success factors

Planning a structure requires the generation of critical success factors, design options and a risk assessment. The purpose of a restructure is to align the organization to better achieve its strategy. Critical success factors are important to define, because if they are met they will ensure success for the new structure and by implication the strategy. Although identification of these key factors is an important prerequisite to any restructuring, this task is not necessarily clear-cut. The factors themselves will depend on the organizational strategy, its culture, its market, its infrastructure and its internal processes.

In the box we give an example from a local government authority that needed to reorientate itself to have a much greater customer and citizen focus. One of the explicit strategies was to restructure the organization in a way that would dissolve the traditional departmental boundaries and their associated destructive tensions and unhelpful silo mentality.

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