Corporates restrict reorganisations to avert risks
By siliconindia   |   Monday, 23 August 2010, 15:11 IST   |    4 Comments
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Corporates restrict reorganisations to avert risks
Bangalore: The rapid pace of reorganizing the companies seems to be gaining prominence in Hewlett-Packard, Nokia and Caterpillar as they have already announced their organizational overhauls. It takes nearly two years for the new chief executives to do so, reports Marcia W. Blenko, Michael C. Mankins and Paul Rogers from Bain & Co. In order to assure better performance, changing the organisation's structure seems to be the most effective way to better the organizational operations. But corporate reorganizations are risky investments of time, energy and resources, and many do little to improve the business. In a recent study by Bain & Co., where they sampled 57 major reorganizations, it was found that less than one third of the companies showed any meaningful improvement in performance and some destroyed the value of the organization. Reorganisations are the most important tasks for any organization. They do not only mean to reshuffle the people in the organizational hierarchy rather they put the right kind of people at right places to take important decisions affecting the organization's growth.

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