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A Practical Guide in Five Steps
Most executives will lead or be a part of a reorganization effort (a reorg) at some point in their careers. And with good reason—reorgs are one of the best ways for companies to unlock latent value, especially in a changing business environment.
But everyone hates them.
No other management practice creates more anxiety and fear among employees or does more to distract them from their day-to-day jobs. As a result, reorgs can be incredibly expensive in terms of senior-management time and attention, and most of them fail on multiple dimensions. It’s no wonder companies treat a reorg as a mysterious process and outsource it to people who don’t understand the business. It doesn’t have to be this way.
Stephen Heidari-Robinson and Suzanne Heywood, former leaders in McKinsey’s Organization Practice, present a practical guide for successfully planning and implementing a reorg in five steps—demystifying and accelerating the process at the same time. Based on their twenty-five years of combined experience managing reorgs and on McKinsey research with over 2,500 executives involved in them, the authors distill what they and their McKinsey colleagues have been practicing as an “art” into a “science” that executives can replicate—in companies or business units large or small.
It isn’t rocket science and it isn’t bogged down by a lot of organizational theory: the five steps give people a simple, logical process to follow, making it easier for everyone—both the leaders and the employees who ultimately determine a reorg’s success or failure—to commit themselves to and succeed in the new organization.
- Sales Rank: #82825 in Books
- Published on: 2016-11-15
- Original language: English
- Number of items: 1
- Dimensions: 9.30" h x 1.00" w x 6.00" l, .0 pounds
- Binding: Hardcover
- 256 pages
Review
“Anyone contemplating a reorganisation would do well to read this book...” — Financial Times
ADVANCE PRAISE for ReOrg:
Dominic Barton, Global Managing Director, McKinsey & Company—
“ReOrg focuses on business results, not buzzwords. It’s the book that I’ll be recommending to clients and colleagues.”
Lord John Browne of Madingley, former CEO, BP; Executive Chairman, L1 Energy—
“How you deliver a reorganization is as important as what design you develop. Heidari-Robinson and Heywood capture that simply and effectively here. This is an invaluable book for anyone leading a reorganization.”
Lady Barbara Judge, CBE, Chairman, Institute of Directors; former Chairman, United Kingdom Atomic Energy Authority; and former Commissioner, U.S. Securities and Exchange Commission—
“An extremely useful and practical book. It will be an invaluable guide for executives at any level who are considering doing a reorganization of part or all of their company.”
Sir Andrew Witty, CEO, GlaxoSmithKline—
“Modern business demands extraordinary nimbleness and the willingness to change in order to compete and keep up. The inevitable reorganizations need to be done right the first time, every time. ReOrg is an ideal thought provoker.”
Sir Suma Chakrabarti, President, European Bank for Reconstruction and Development—
“This book will be invaluable for managers in both the public and private sectors faced with the challenge of leading a reorganization. It lays out clearly how managers can make a reorganization happen in a way that achieves the organization’s objectives while also remaining conscious of the cost (both actual and human) of the change and seeking to minimize it.”
Ana Bot�n, Executive Chairman, Santander—
“Reorganizations are inevitable in any business. Heidari-Robinson and Heywood are frank about the challenges and offer practical solutions. I highly recommend this book to business leaders thinking of reorganizing their companies.”
About the Author
Stephen Heidari-Robinson led McKinsey & Company’s Organization Practice for energy clients in addition to developing the firm’s thinking on implementing reorganizations. He served as UK Prime Minister David Cameron’s advisor on energy and environment. Stephen has also worked as a vice president at Schlumberger, as head of the corporate program of a charity (Asia House), and in the UK Ministry of Defence.
Suzanne Heywood is Managing Director, Exor Group; sits on the boards of a number of companies, including The Economist Group and CNH Industrial; and is Deputy Chair of the Royal Opera House. She started her career in the UK Treasury and then worked at McKinsey & Company, where for several years she led the global Organization Design service line in the firm’s Organization Practice.
Most helpful customer reviews
0 of 0 people found the following review helpful.
good discussion of some important concepts in reorg
By Amazon Customer
An interesting book for practitioners. good discussion of some important concepts in reorg. I would like to see some examples from other companies and consulting firms also.
1 of 2 people found the following review helpful.
How to unlock latent value, especially in a rapidly changing competitive environment
By Robert Morris
I recall reading somewhere that the TI-class supertanker ships must travel more than miles in order to reverse direction. Their engines are off before traveling the last 15 miles to dock. I thought about these and other issues as I began to read this book. They give us at least some sense of how difficult it must be for the world’s largest organizations to complete a reorganization.
However, the fact remains that there are valuable lessons to be learned from previous reorgs and that is worth noting. Stephen Heidari-Robinson and Suzanne Heywood point out, “A successful reorg can be one of the best ways for companies to unlock latent value, especially in a changing business environment – which is why companies are doing reorgs more often.”
They provide an abundance of information, insights, and counsel that will help leaders in almost organization to get its reorg right. They recommend – and thoroughly explain -- a five-step process by which to achieve that objective
1. Construct the reorg’s P&L
2. Understand the given organization’s current weaknesses and strengths
3. Choose very carefully from multiple options
4. Get the “plumbing and wiring” right
5. Launch, learn, and (if necessary) course-correct
I agree with them: “Have a good business rationale for your reorg. Focus on delivery as much as — or more than — the design itself. Recognize that there will be issues along the way; learn from previous reorg mistakes in your own organization and from the experience of others [some of which is cited in this book]. Accelerate the process to minimize the upset for your colleagues and to deliver the business results you need as soon as possible. And finally, step up to the plate: lead your own reorg. Don’t outsource to others.”
I presume to add one addition suggestion. Over the years, I have been centrally involved in a number of reorgs of varying nature and scale. However different they were in most respects, one of the most important issues that all of their leaders had to address, when obtaining buy-in within the given workplace, was to be well-prepared to answer a question they probably wouldn’t be asked but a question nonetheless that all the employees were asking themselves: “What’s in it for me?”
Heidari-Robinson and Heywood make brilliant use of several reader-friendly devices, notably “Pitfall” and “Winning Ways” sections in most chapters, accompanied by dozens of Figures, Tables, Q&A quizzes, “drafts” of content documentation, checklists, 3-D option analysis, and a recurring “How to Handle Communications in Step [fill the step]” and “How to Use These Ideas” sections. These devices will facilitate, indeed expedite frequent review of key material later.
Presumably Stephen Heidari-Robinson and Suzanne Heywood agree with me that it would be a fool’s errand to attempt to apply all of the recommendations they offer for consideration. It remains for thoughtful and reflective readers to sort through the material with appropriate care, then select whatever is most relevant to their organization’s immediate and imminent needs, interests, resources, and strategic objectives. Elimination or at least substantial reduction of waste is surely one of those objectives as are simplification of processes, improvement of decision-making and problem-solving processes, and — in process — to “ unlock latent value, especially in a changing business environment.”
This book is a brilliant achievement. Bravo!
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