Structure may not be aligned with strategy and its supporting value chain.
Roles and responsibilities may be unclear.
Managers may be ineffective.
Culture and team work may be poor.
Staff may not have the required skills and training.
The result is organisational inertia, confusion, ineffectiveness and often high costs.
Reorganisation should ensure successful business transformation or turnaround through structural alignment with strategy, and overcome organisational inertia and confusion.
Horizontally, the organisation should be restructured in alignment with strategy and the chosen value chain segments, which also reduces complexity and confusion.
Vertically, delayering and flattening of structures not only reduce costs, but make business transformation or turnaround strategy implementation more effective.
At the top, separation of the board and management enhances leadership effectiveness.
Reconstituted board membership in accordance with King 2 principles is often a good move to ensure good corporate governance.
The redefined organisational structure require appropriate staffing with redefined roles and responsibilities. If appropriate, it also requires redefined incentives, and terms and conditions of employment.
A business transformation or turnaround requires programmes aimed at changing values and behaviours to mobilise the organisation around the transformation / turnaround plan.
Key ingredients include leadership alignment, team building and team effectiveness programmes, building of commitment, and improved communication and morale.
Restaffing should be complemented by coaching of teams and individuals, training and skills transfer.
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