Training Today: The Right Way to Reorganize

Global research performed by the HPO Center in The Netherlands shows that many organizations make the wrong choices when undergoing a reorganization. Cuts are made in the wrong projects, poorly
performing employees stay in place, and the organization focuses mainly on internal cost savings. The HPO Center surveyed the most important qualities needed to be and remain successful at more than 1,400 organizations in 50 countries. Results showed that five success factors give organizations the right focus in a reorganization:

1. Quality of management. Management combines integrity and coaching leadership with fast decision-making. They take a resolute approach to “non-performers” and are result-driven but always focused on the long term.
2. Openness and action orientation. These organizations have an open culture. Everyone is involved through dialogue, and knowledge and experience are shared and concerted into action for improved performance. Mistakes can be made as long as people learn from them.
3. Long-term focus. This includes building valuable alliances aimed at the long term with customers, suppliers, and partners in the supply chain, and, above all, for management and staff. New management is supplemented through internal promotions, and when reorganizations are carried out, the company retains talent wherever possible.
4. Continuous improvement and innovation. The organization knows its distinguishing characteristics in the market and allows all managers and employees to continuously contribute to renewing its processes, services, and products. Cuts are made in processes that do not contribute to remaining a high-performance organization. The organization continuously improves its core competencies.
5. Quality of staff. The employees are varied, complementary, and able to work effectively together. They are flexible and resilient in their focus on achieving the intended result. The fact that management and staff hold a continuous dialogue ensures everyone knows precisely which steps need to be taken in a reorganization.