Solid to Liquid: Organizational Redesign

It’s not easy to move from a mechanistic business structure to the more fluid structures that are needed to compete in today’s global economy. What are the barriers and the techniques needed to get changes made?

Why do people resist?

  • Concerns over losing their jobs during restructuring
  • When you restructure, you may get a new boss or new responsibilities
  • Often the changes are not made transparently resulting and confusion and distrust
  • Contemporary structures lean toward flatter, more team based structures threaten employees’ hard earned authority
  • Incentive programs and individual performance evaluations would need to be redesigned to incorporate group goals

Don’t expect restructuring to be successful without the buy-in of your people. Structure exists only so far as it is recognized and reinforced by the people in it.

How to redesign the organization

  1. Streamline – flatten the organization and spread out decision making. One area can then be responsible for more than one strategy to increase efficiency.
  2. Start over – take a look at what is important to your customers and where your company is going in the future. From there, design a company that fits the direction from a blank slate. Of course, this will be the more costly solution, but your company will transform the organization rather than make only incremental changes. Take time planning this one as it would be smart HR planning to figure out where you can retrain employees for your new direction.
  3. Stray across boundaries—strategic alliances don’t have to be between two different companies. What about two different business units or functions? The same principle applies to bringing in strengths and innovation from another “partner.”
  4. Self –Managed Teams—become a collection of entrepreneurs by using self-management teams. All the functions of management are done within the team. Coordinating the teams becomes the role of a few executives, reducing the weight at the top.

Each of these techniques has different goals and intentions. Which is right for your organization?

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