Reorganizations That Last

Four out of five organizations have gone through some type of redesign initiative over the past 12 months. This may not be big news since during the recession, many companies were quick to undertake reorganizations in order to reduce costs, improve efficiencies and increase the quality of service. However, you may be surprised to learn that more than half of these organizations expect to go through another major redesign over the next 12 months. Why? While companies have had relative success in hitting their cost cutting targets, the results might be masking a significant problem that's growing in the organization, and threatens to undermine overall organizational outcomes in the long term—the cost to employee performance as a result of these redesign initiatives.

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