How & When To Reorganize Your Team Effectively | Ep 212
Build with Leila Hormozi
Deep Dive
What are the common reasons for reorganizing a team?
The four common reasons are: the current structure doesn't support the strategy, significant changes in the market, redundancy or inefficiency, and rapid growth or decline.
What percentage of companies report achieving their intended benefits after a reorganization?
Only 11% of companies achieve their intended benefits after a reorganization, according to McKinsey.
Why do most reorgs fail?
Most reorgs fail because they only change one aspect, like reporting lines or compensation, instead of overhauling all related elements such as processes, incentives, and job descriptions.
What was Adobe's recurring revenue before and after their reorganization?
Before the reorg, Adobe's recurring revenue was 19%. Three years after the reorg, it increased to 70%.
What did Microsoft do right during their reorganization in 2013?
Microsoft spent months mapping out dependencies between teams, discovering that 84% of employees regularly worked with people outside their team, leading to the creation of horizontal teams and a 27% increase in employee satisfaction.
What is the 'communication triangle' and why is it important for reorgs?
The communication triangle, developed by Cornell, suggests distributing communication efforts: 25% upwards to bosses, 45% downwards to the team, and 30% outwards to adjacent teams. Companies following this distribution are three times more likely to have a successful reorganization.
How can you maintain momentum after the first 30 days of a reorganization?
To maintain momentum, celebrate quick wins, continue structured check-ins (reducing frequency but keeping them regular), and have team members document what they learned from the process.
What is the importance of over-communicating during a reorganization?
Over-communicating helps reduce fear and uncertainty among team members. Successful reorgs often include daily stand-ups within the first month and documenting new processes to ensure clarity and alignment.
Why is it important to identify key people during a reorganization?
Identifying key people, especially high performers, ensures they stay engaged and informed. High performers are often insecure and may feel uneasy during changes, so keeping them in the loop is crucial for retaining top talent.
What should be the focus in the first 30 days of a reorganization?
In the first 30 days, focus on clear communication, mapping out quick wins, documenting new processes, and maintaining daily stand-ups to ensure the team understands the changes and their goals.
- 74% of organizations that underwent a reorg experienced significant delays or budget overruns.
- Only 11% achieved their intended benefits.
- Four reasons for reorgs: misaligned structure, market changes, redundancy/inefficiency, and rapid growth/decline.
- Adobe's successful reorg involved changes to processes, people, compensation, titles, and product development.
- Successful reorgs require changing all interconnected pieces, not just one aspect.
Shownotes Transcript