Research shows that significant reorganizations are bad for business: a 24% drop in customer satisfaction and a 22% reduction in customer loyalty is typical. What's worse is that 50% of organizations report overall costs as unchanged.
There are beautiful exceptions. Some companies have achieved remarkable post-traumatic growth by tackling the challenge of reorganisation through a different lens.
The attrition rate of merged firms over non-merged firms is twice as high, even nine years later. That’s a lot of time, money and talent wasted. Most of these issues are put down to unproductive management behavior and poor attitudes of employees.
The good news is that bad attitudes and unproductive management behavior are solvable problems, as two UK retailers who worked with Mind Gym have demonstrated. In both cases, despite losing between 15% and 40% of roles, employee engagement and customer satisfaction went up – in one case to the highest level for 21 years.
A recent study focused on hospitals that had recently downsized. The researchers found that showing consideration for employees’ morale and welfare during the downsizing was linked to a positive financial performance afterwards.
For the reorganization to work, leaders need to focus their energy and conversation in the right way. During periods of intense change, leaders tend to obsess about the company, the leavers, the gloom and the other elements on the left of the chart below. For an organizational change to succeed, they need to create a much more balanced blend by giving far greater attention to the ingredients on the right.
The trouble with reorganizations, a bit like diets, is that relatively few achieve what they set out to do. Most reorganizations lead to a fall in stock price, a decline...Read the white paper
In 1961, the life expectancy of a company in the Fortune 500 was around 61 years. Now it’s less than 18. Only 12.2% of Fortune 500 companies in 1955 were...Watch the webinar
Spring is (finally) sprung and change is all around. The new financial year could bring new (or evolved) directions or entirely new strategies for the year ahead. These changes can...Read more
Challenge: GSK was embarking on its most radical organizational transformation yet. It needed to build engagement and belief across the organization, as well as an understanding of how the different change projects interlinked. Solution: Mind Gym engaged with key stakeholders across...see full case study
These changes are well received, thoughtful, impactful and absolutely necessary for our future. I feel better about GSK, and my future in it, than I have in three years.
Challenge: Prior to the formation of “One British Gas”, many of the business areas operated in a decentralized way. A lack of engaging internal communication had left employees confused and misaligned and engagement scores were flat-lining. The leadership team was...see full case study
Mind Gym has played a very valuable role in shaping the way we engage employees across British Gas. Mind Gym is quick, creative and always extremely professional. Above all, they get great results.
Challenge: The leaders at Accenture found that their graduate intake brought “smarts”, energy and dedication in abundance. However, to give great value they also needed to learn how to socialize their ideas and how to handle clients and colleagues with...see full case study
The biggest improvement I have seen is her confidence in meetings. She proactively told me about the facilitation techniques when she returned and was really excited.
Challenge: The Unilever Management Development Program (UMDP) is an ambitious global learning initiative targeting 15,500 supervisors, first- and second-line managers, to take a fresh look at the role of a manager and how they create value. Solution: Two programs were developed focusing on seven...see full case study
As well as the learning transfer data which is demonstrating the value created, one of the things I am most struck by is how this program is reinvigorating the pride in being a great manager.