- Before deciding to change an organization’s structure, leaders must define the issue: What exactly is the organizational challenge at hand?
- Ideally, there should be a consensus among leadership about challenges and needs.
- Once leaders understand the challenge, the next step is to determine the best way to address it.
- A reorganization may be a solution, but more effective and less disruptive options may be available.
- Streamlining work processes, engaging stakeholders to identify needed changes, or clarifying roles and responsibilities may be better solutions than a formal change to the organization.
- Reducing costs may be a motivation for reorganizing an organization, but leaders should think carefully about whether and when costs will decrease.
- It is not always necessary to complete a complex fiscal analysis.
- Leadership can make educated guesses about how much time will be lost due to a reorganization and factor those losses of productivity into rough calculations of benefits and costs of a potential reorganization.
- When reorganization is the right solution to an organizational challenge, leadership and managers must be prepared to invest time and resources to make the transition successful.
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