ReOrg: How to Get It Right

Description

Most executives will lead or be a part of a reorganization (a "reorg"). And for 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. Perhaps 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 that companies treat a reorg as a mysterious process and outsource it to people who don't understand the business. But it doesn't have to be that way. Stephen Heidari-Robinson and Suzanne Heywood, former leaders of McKinsey's Organization practice, present a practical guide for successfully planning and implementing a reorg-demystifying and accelerating the process at the same time. Based on their twenty-five years of combined experience doing 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. Their approach isn't complex, nor is it bogged down by a lot of organizational theory: the five steps give executives a simple, logical process to follow, making it easier for everyone-both the leaders and the employees who ultimately determine the success or failure of a reorg-to commit themselves to and succeed in the new organization.

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.

"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 Botin, 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."