Reorganization

1. What do we mean by "reorganization"?
2. Reorganization - risks and how to deal with them
3. Why is change management important for reorganization?
4. Reorganization - Consulting with the Timmermann combination

1. What do we mean by "reorganization"?

When we talk about reorganization, we are referring to the continuous evolution of organizational structures and processes. Whether it's due to rapid growth, entering new markets, mergers, or strategic shifts, there comes a point in every company's journey where the current organizational setup no longer aligns. It's essential to create a new design that aligns with the company's strategy, as the way your organization is structured significantly impacts the productivity and collaboration among your employees, ultimately influencing your company's success.

Here are three theses:

i) Organizational design is technically complex

There are various factors to consider: Should you organize by country, product, or task? Is an agile organization the right fit? To matrix or not to matrix? Centralized or decentralized structures? Flat or hierarchical hierarchies? Teams or project-based structures? Physical proximity or virtual collaboration? How can you navigate the complexities and avoid creating more issues such as silo cultures, lengthy coordination processes, and unnecessary complications?

ii) Reorganizations are often strenuous and political

Executives aim to maintain or increase their influence, while employees are concerned about job security. The challenge arises when the ideal solution does not align with individual needs, leading to potential complications. As a result, achieving a perfect solution on paper becomes highly challenging.

iii) Reorganizations are sometimes not enough

Sometimes, reorganizations can act as a superficial solution to deeper underlying issues. It's essential to assess whether the challenges stem from issues like leadership accountability or cultural dynamics. In unfortunate instances, a reorganization can lead to significant effort, disruptions, and disappointment if the outcomes don't meet expectations.

2. Reorganization - risks and how to deal with them

To kickstart the reorganization process, it's essential to gain a solid grasp of the intended direction for development. Key questions to consider include:

Does reorganization really solve our underlying problems?

Reorganizations can sometimes act as a quick fix to hide underlying issues that may be present. It's important to consider whether the challenges stem from factors like leadership accountability, cultural dynamics, or process organization. In some cases, a reorganization may lead to a significant investment of time and resources, but the outcomes may not meet expectations. Our team utilizes proven change diagnostic methods to uncover the root causes behind these challenges.

Before starting to move boxes in an organizational chart, It's important to gain a clear basic understanding of the options and implications of organizational development. We provide support here, for example, with proven analysis tools such as a workflow analysis and visualization, process structure mapping, stakeholder analyses, and analyses of leadership spans and hierarchy levels. Tools to support essential decision-making processes are e.g. morphological boxes to develop guard rail decisions and process simulations to develop practical solutions.

Who do I need to involve in decision making and how do I communicate the decisions?

The decision-making process should involve active participation, clear communication, and a sense of direction. It is important to strike a balance between top-down decisions and democratic discussions, ensuring that decisions are made swiftly and clearly at a strategic level. These decisions should then be effectively communicated to stakeholders, allowing for collaborative development of detailed solutions. Early simulation and testing of processes can help prevent lengthy planning cycles and errors resulting from a lack of practicality.

3. Why is change management important for organizational development?

Organizational development usually requires a reorganization of both the processes and the structure of the organization. This leads to concerns and resistance on the part of affected managers and employees. For example, managers want to retain or expand their power, employees fear for their jobs, individuals and the theoretically best solution do not fit together - trouble is imminent. Structured change support helps to identify challenges at an early stage, to use the potential of those involved, to reduce resistance and to bring about real long-term benefits, because processes have not only been set up analytically in a clean way, but managers and employees actually change their behavior and attitudes and live these processes.

4. Reorganization - consulting with the Timmermann combination 

It's essential to consider the entire organization when planning any reorganization.

As market leader in strategy and change consulting, we are here to assist you every step of the way through your reorganization journey. From initial diagnostics and analysis to facilitating critical decision-making processes and executing the reorganization plan, we provide comprehensive support tailored to your needs. Whether serving as process facilitators or analytical consultants, we are committed to helping you achieve success in your organizational transformation.

In addition to classic change methods, we use specific elements in reorganization, e.g.:

• Pragmatic analysis tools such as process structure mapping, workflow analysis and capacity planning
• Tools to support essential decision-making processes, such as morphological boxes to develop guardrail decisions and process simulations to develop practical detailed solutions
• Innovative methods for generating exceptional solutions tailored to the expectations of your (also internal) customers with design thinking.