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EFFECTIVE CHANGE MANAGEMENT
DURING A RESTRUCTURING

Because of the tight relationship between the organization chart and workflows, a well-planned restructuring treats both subsystems together.

Effective structural change begins with a leadership team that studies the science of organizational structure, agrees on a common language to describe the building blocks of structure, and applies a common set of principles to designing a new structure.

A "clean sheet of paper" approach to the organization chart is recommended. Small adjustments to an extant organization chart actually take longer and are much more painful (emotionally and politically), since people naturally try to protect their territories. Furthermore, a series of small changes keeps people in chaos, with continued uncertainty and fear. This is far more difficult for staff than one big change.

Once the organization chart is determined, workflows are developed. To build the basis for high-performance teamwork, each group drafts its own "charter" -- a list of the products and services it sells to each of its customers (clients and peers), and those it buys from each of its suppliers. This is combined with a discipline of subcontracting to peers for specific products (rather than simply drafting people onto teams).

Charters then become the basis for "walk-throughs" -- practice in how real work will be done by documenting workflows as a series of contracts and subcontracts.

With enough preparation, the new structure can be highly productive shortly after it is announced. More importantly, by planning the workflows as well as the organization chart, the new structure will not simply be a matter of "rearranging the deck chairs on the Titanic." Instead, it will bring about significant changes in the way that people work.


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