Restructuring is a powerful tool when a company executes a new strategy, or aims for gains in productivity. Although people often deny the need for or resist change, a successful restructuring can infuse them with a common compelling sense of mission. But reorganizations frequently fail, even when they draw on sound organizational design practices.
A reorganization succeeds when it builds on simple and motivating goals, the timing is right, and the strategy engages the realities of the company or institution. Only when these factors are achieved can executives and senior management begin reorganizing and testing the options for a new organizational design that will also leverage organizational intellectual capital and learn faster than its competitors.