Reorganizations

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Overview

Reorganization is the process of restructuring a firm's operations in order to concentrate on its core activities and outsource peripheral ones, often requiring a reduction in workforce. A “reorg” could also entail a combination of two or more organizational units resulting in a new entity in which the combined units remain essentially intact. Reorgs could also take the form of readjustment of a firm's debt and capital structure after a bankruptcy or receivership order.

Reasons For Reorganizations

When changes occur in a department's programs, staffing patterns, or resources, managers should take a close look at a possible reorganization. Reorganizations, whether large or small, are critical to organizational health, serving to align the organization with objectives and drive efficiency and innovation. However, driven by both complex business goals and aggressive timelines, reorganizations or merging organizations requires a delicate balance between acting quickly and acting wisely.

The Process

In medium to large companies, Organizational Charts provide clear visibility into current information, intuitive modeling tools, and a means to easily communicate the resulting organization. They can speed up reorganizations, mergers and acquisitions, and give management the ability to quickly access data, model scenarios and test options. They can also enhance reorganizations by facilitating collaborative decision making and providing clear visibility into the financial impact of each scenario. This eliminates redundant administrative work, reporting delays, and disconnected discussions that tend to impede progress.

Armed with detailed snapshots provided by org charts, interactive modeling enables teams to quickly create and share options for the resulting organization. The complex tasks of managing communications among multiple people building, reviewing and approving scenarios are managed through workflow to ensure that plans progress rapidly and nothing slips through the cracks. When the final organization is agreed upon, the org chart can be instantly communicated to employees and stakeholders.

By centralizing information access and streamlining communications, organizational charts shave valuable days or weeks off of reorganizations, saving direct costs and enabling an organization to more quickly return to productivity.

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