Getting organizational redesign right

A common approach to redesigning companies didn't correlate with success.

There's a lot of organizational flux in most companies, according to McKinsey's research. Less than a quarter of organizational redesign efforts succeed, according to McKinsey. Redesigns that work pay off in more motivated employees and more decisiveness.

When leaders don't deliver what they promise, employees throw out or undermine the redesign effort. It's six times more likely for executives at these companies to "declare victory" than at companies that just have one or two golden rules.

In order to implement strategy, an organization needs to integrate structure, processes, and people. A successful redesign will focus the company's resources on its strategic priorities and reduce costs. An example of a typical motivation for a redesign is a company that decided to expand outside of its US home base.

Those who succeed combine stable design elements with dynamic elements that change as markets change and strategy changes. It's a rare opportunity for organizations to identify their stable backbone and set them up so that they can change dynamically. Successful leaders and successful companies use these changes to "rebuild the future"—but a landsc... See more

1. Focus first on the longer-term strategic aspirations2. Take time to survey the scene3. Be structured about selecting the right blueprint4. Go beyond lines and boxes5. Be rigorous about drafting in talent6. Identify the necessary mind-set shifts—and change those mind-sets7. Establish metrics that measure short- and long-term success8. Make sure b... See more