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Report identifies ‘winning factors’ in reorganisational success

Six crucial factors can make the biggest difference when it comes to the success of a business reorganisation, a new report from the Boston Consulting Group claims. Produced in partnership with the Chartered Management Institute (CMI), the report explains and expands on how the following factors can contribute towards a winning reorganisation project:

  • Synchronising organisation design with business strategy
  • Clarifying roles and responsibilities with a clear, systematic process
  • Highly capable leaders
  • Layer-by-layer design rather than top-down CEO-only reorganisation
  • Discipline in execution
  • Reorganising during a period of strength, rather than duress

The study also revealed that these factors have a “multiplier effect”, meaning that success rates were significantly higher when implementing more than one at the same time. Some 88 per cent of organisations with five or more success factors in place reported complete reorganisation success. This may lead to a trend for businesses to make use of services like this to fulfil the “highly capable leaders” requirement, or delay their reorganisation until they are in a position of strength.

Christopher Kinsella, acting chief executive of the CMI, said: “Due to the current economic and global instabilities it is now, more than ever, that organizations must change and adapt in order to survive.  This report helps to provide a route map towards successful organizational change.  It clearly recognizes that those companies who harness the talent of highly capable leaders and managers at all levels are the ones who are most likely to thrive in today’s turbulent times.”

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