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Turning a failing organization around is one of the most interesting activities in management. When organizations see themselves in that downward spiral, their managers may feel that they are unable to stop the pace of negative change. That worry and that downward momentum can be very powerful. At the same time, it sometimes takes only a key impetus to deflect that movement and turn things around.

Picture yourself as a new manager hired into a failing division in a company. The product line is outdated and losing market share, inter-departmental communication is adversarial, and competition for corporate funding is fierce. How are you, a new person, going to turn things around? Consider the following example, Symphonic Cooperation, from another "industry" below. The following article is an example of how one person, working in a very different type of workplace, turned around a company by making changes in its structure. Some of what was done may be food for thought in your very different work environment. As your first job as the new manager at the outdated, adversarial company, write a plan for changing its organizational structure, incorporating the following elements:

Your vision of the new organizational structure for your division including how you would realign individuals, tasks, processes and functions
Steps to manage the transition from the old organizational structure to the new
New policies that you would implement that should begin right away to facilitate the change to the new organizational structure



my work
To turn around a failing division one must first determine what is working well with the division and what is not working well. Clearly, overall, the division is failing. However, even within a failing division there are sometimes elements that function well and should be maintained. The first step is to identify what these positive and negative elements are and determine how they can be used to better position the division.

In order to start this process I would first introduce myself to the employees and tell them why I think the division can succeed. During the meeting I will talk to them about the division’s prior successes and how “we” could return to those times. At the close of the meeting I would tell them that I believe they, as long term employees, are the experts in the division. I would let them know that as experts, I believe they are the best source of ideas for turning the division around to be a place where they will enjoy working and which will be successful.

In order to help best determine what is working or not in the division, I will ask employees to call or write me, with or without signing their names, to tell me what they think works and what they think does not work in the division and to give me their ideas about what the division should do to fix the problem. I would post the suggestions on an intranet website where they could then vote, anonymously, on the ideas they like or don’t like. Although they may not get their way on all ideas, I will let them know that at the end of the first quarter, we would meet again to discuss the results of the vote. Any ideas that have high support, but that I do not select for implementation, I will discuss with them and explain why. Also, if they disagree with my selections, then I would welcome their comments as well. I will tell them that the only way we can work together is if we all agree to honestly give and take criticism and praise.

In this manner I am trying to improve communication. So often, when division’s fail, communication is stifled because employees and managers do not trust each other. Employees often feel ignored and managers feel that employee lack of concern is responsible for the losses. In effect, at a time when the two sides should be working together, they blame each other entirely for their combined failures. Therefore, the first step has to be to improve communication between employees and managers, in all areas of the division.

In addition to the above meeting I would then meet with the individual department heads and tell them that we all need to improve communication. I would tell them that corporate information, from financials to market data, must be shared with employees and employee thoughts on such matters should be discussed with them. To encourage this behavior, I would inform management that all employees in the first three departments that succeed in opening and sustaining good communications would receive an extra week’s worth of vacation.

PRODUCT

Fixing the lack of communication is the first order of business in the division. The second task is turning the product line around and getting employee involvement to increase.

An outdated product line and slipping market share can only mean that buyers do not want what the division is selling. However, is that because the product is obsolete or because the model sold by the division is lacking in quality or is to expensive or is being targeted at the wrong audience? These issues must be studied and determined quickly. I would request that the marketing, sales, and advertising managers meet with their department employees to find the solutions. Once they have made their determinations, then we will meet and post our findings on the intranet website. The information would be open for all employees’ anonymous comments for a period of a week. Based on that feedback, then we would make changes to the product line. If possible, I would ask employees to try our new products and give us their opinions on them. Not only would this allow the division to have a free source of “test subjects,” but employees often find product solutions that are very successful (3M is famous for this). In this manner employees would save the division the cost of “test marketing,” while at the same time feeling that the division needs their assistance. Again, this would help unite management and employees.

CORPORATE ALIGNMENT

I would not, unless so indicated through the findings of the first step, necessarily change the division’s structure. Too many changes in corporate structure can alienate employees, particularly when such changes are made by a new manager. Therefore, although I would change the way things are done, and who has the power to speak and be heard, I would try to keep the corporate shell the same and work to show employees how their expanded roles fit into the old form. By maintaining the stability of the old environment while adding excitement through the introduction of new tasks and communication functions and tools, the division will feel a good sense of momentum and purpose.

FINANCING

Lastly, based on the success of the product line review, I would speak to the CEO about a new campaign for a revised market line. I would present the evidence we discovered about what needed to be done and why, and then request the funding to launch the new products. I would specify the financial results that are expected should the new products take and our expectations that the new products are just what the market needs. I would also explain that the expenses eliminated through termination the old products could be used to pay for the launch of the new ones.

CONCLUSION

Although the market will be the ultimate determiner of the success of this plan, by improving communications, increasing employee involvement and morale, and working to improve what is not functioning in the division while at the same time respecting what is working, the division has improved is probability of success



Retrieved 6/16/07 Organization Problem http://www.knowledgestorm.com/images/header-logo.gif

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"Change is not merely necessary to life, it is life."

alvin + heidi toffler {futurists}