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Reorganization in companies

Dr. Georg Kraus / Redaktion: Alexandra Hose,

Change is not a technology project

© stock.adobe.com/magele-picture

Every structural and strategic change in companies also affects the corporate culture. Without taking this into account, the desired successis rarely achieved. A reorganization is therefore much more than a technical restructuring: it is a profound change that must realign thinking, action and cooperation.

Many companies are currently faced with the need to rethink not only their strategies but also their structures and processes in order to remain competitive. Top decision-makers therefore first draw up a new strategy for their company; building on this, they decide to change the structures and processes - also with the help of IT - in such a way that the strategic goals are achieved. They also define milestones to be achieved in the course of the planned change project and back these up with key figures so that they can check in the meantime: Is the organization on the right track or is it necessary to take corrective action?

When planning reorganizations, it is taken into account that the structures and processes must correspond to the strategy and objectives. However, little attention is paid to the fact that the structures and processes of a company also reflect its culture. Therefore, changes at the process and structural level also require changes at the cultural level, i.e. in the way employees think and act.

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Setting up change management professionally

The reorganization of a company is a complex change process that goes far beyond adapting structures and processes. Ultimately, the overarching goal is to set up the entire organization in such a way that it is fit for the future. For this reason, a number of key aspects need to be taken into account during project planning and design.

1. develop a vision and strategy
Every reorganization begins with a vision, i.e. an idea of what the company stands for at a certain point in the future - for example, in three years' time. Top management should communicate this vision to all those affected and involved using inspiring language, for example by means of storytelling that also illustrates the urgency of the change. This makes it easier to support the desired changes.

2. analyze the status quo
In order to plan a reorganization, decision-makers need to know exactly where the company currently stands. It is therefore important to identify strengths and weaknesses in advance and to check which processes, technologies and structures are already fit for the future and which are not. Employees and, if possible, external experts should also be integrated into this process in order to obtain a comprehensive picture, as every organization has blind spots and pain points that nobody likes to talk about.

3. systematically record structures and processes
During a reorganization, the structures, procedures and processes of an organization should be adapted to the new objectives and changed market conditions. A precise analysis of the current processes is therefore important in order to identify bottlenecks and redundant processes, for example. Tools such as process maps and workflows help to create the necessary transparency and determine which processes, for example, could be streamlined or even automated with the help of IT technology.

4. deploy and use new technologies in a targeted manner
The use of new technologies is a decisive lever for successful restructuring. However, it is not an end in itself: rather, it serves to achieve the overarching goals. How effectively the technology is used depends on employee acceptance. And this is influenced by how competent they feel in dealing with it. Therefore, the introduction of new technologies should always be linked to training programs that provide employees with the necessary skills.

5. involve employees at an early stage
For reorganizations to be successful, they must be supported by the employees. Managers should therefore create a top-down culture of co-determination and co-design in their environment. Involving employees at an early stage, for example through cross-divisional working groups, increases acceptance and helps to avoid resistance. In addition, valuable ideas are often generated in dialog with them in order to avoid pitfalls in the project.

6. remove barriers to success in the culture
Structural and technological changes are generally easier to implement than cultural ones. However, without a suitable corporate culture, restructuring and technical innovations usually do not have the desired effect. It is therefore important to identify the cultural barriers that stand in the way of achieving project goals in day-to-day operations and create resistance. Managers can do this, among other things, by addressing their employees' fears in dialog with them and working towards building trust. A top-down demonstration of the new values by managers is also crucial for the desired cultural change.

7. proactive change management
Restructuring that also affects the corporate culture requires professional change management. Clear communication strategies, transparent decisions and measures to promote acceptance are essential for their success. It is also important to have a change management team that coordinates the process and acts as a point of contact for employees, including managers, at the operational level during day-to-day operations.

8 "Empower" and "support" managers
Employees' line managers are the driving force behind change during reorganizations in day-to-day operations. Their attitude and commitment are crucial to the success of the project. It is important to remember that every reorganization means extra work and an additional emotional burden for managers. In addition, as employees of the organization, they are often plagued by similar concerns as their team. Nevertheless, they must exude the confidence "We can do this if ...". It is therefore important to empower and support managers, for example through coaching and the change management team.

9 Be agile and stay flexible
In a world characterized by rapid change, detailed plans are often
detailed plans are often quickly outdated or prove to be (partially) inadequate - for example due to changes in the framework conditions. For this reason, the reviews that take place as part of the reorganization should also check whether the project objectives themselves may need to be readjusted in addition to the measures. If so, the action plan should also be
should also be modified.

10. stay on the ball as top management
A company's top management often decides to reorganize, but then delegates responsibility for the project to a change management team or a specialist department such as IT or HR. This reduces the chances of success. This is because the commitment of top management is a key indicator for employees of the importance that the company management attaches to a project. This is why they should repeatedly demonstrate this to employees during the course of the project: This project has a very high relevance - for example, by the top decision-makers repeatedly addressing the project in the company's internal communications and debating its progress with the employees.

11 Establishing new standards and routines
When companies are reorganized or restructured, their performance usually drops at first - also because many routines that employees have developed while working in the familiar structures become obsolete; instead, they have to demonstrate new behaviours. Developing new routines takes time. During this transition phase, managers need to provide their employees with more support. They must also give them regular feedback on the extent to which their behavior already meets the new requirements so that they regain behavioral confidence over time.

12. communicate and celebrate successes
Employees' insecurities gradually disappear when they experience the following in their day-to-day work: "My efforts have been crowned with success; everything is moving in the direction of the desired goal." It is therefore important to communicate successes - both individual and collective - so that employees have a stronger feeling of "I / we can do this if ...". This is why you should also celebrate the achievement of milestones with your employees: as a sign of appreciation for their achievements and as motivation to continue on the path they have taken.

Dr. Georg Kraus is managing partner of the management consultancy Kraus & Partner in Bruchsal. © Kraus & Partner

The reorganization of a company is a multidimensional change process that needs to be managed professionally. If this is done, it is highly likely that the company will be able to master the challenges and look to the future with confidence, relying on its strengths.

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