Illustration by Samuel Finch
Summary.
Changing which parts of your company have full profit and loss (P&L) responsibility is not a decision to take lightly. Executives considering a major rearrangement need to carefully consider the timing and pacing of these changes. The authors offer three scenarios in which to consider a restructure, and advice on how to manage organizational change without too much disruption.Companies regularly shake up their organization structure, whether it’s due to a change in strategy, a change in leadership, or for other reasons. Most of these changes are incremental, while a few are radical. In our decades-long experience, we’ve observed a leap-and-hops pattern in which a series of minor adjustments is followed by a major rearrangement, after which the cycle starts all over again.