cameron and green making-sense-of-change-management

Restructuring[W]hen DuPont announced its reorganization in February 2002, its stockprice rose 12%, putting a valuation on the new organization design of $7billion (£4.5 billion). Less fortunate was the reception of Proctor andGamble’s… launched in 1999 by the company’s new chief executive, DurkJager, this reorganization had a $1.9 billion (£1.2 billion) budget over sixyears. Within 18 months, the perceived difficulties… had cost Jager his job.On a macro level, the survey found that during the 1990s the top 50 UKcompanies moved from having on average one major reorganizationevery five years to having one every three years. On a micro level, individualmanagers had personally experienced seven reorganizationswithin their organizations. Not all of the seven were major organizationwidechange, some were more local. Nonetheless managers encounteredvarious challenges as a result: managing the changes within themselves,managing the changes within their staff, ensuring that both large-scaleand minor changes were aligned to the wider organizational strategies,and last but by no means least, delivering on business as usual andensuring staff were motivated to deliver on business as usual.REASONS FOR RESTRUCTURINGWe are concerned in this chapter with the dynamics of change andrestructuring, less so with why the organization or part thereof is beingrestructured. Restructuring can occur for numerous reasons:• downsizing or rightsizing (market conditions or competitiveness);• rationalization or cost-cutting (market conditions or competitiveness);• efficiency or effectiveness (drive towards internal improvement);• decentralization or centralization (drive towards internal improvement);• flattening of the hierarchy (drive towards internal improvement);• change in strategy (strategy implementation);• merger or acquisition (strategy implementation);• new product or service (strategy implementation);• cultural change (strategy implementation);189