A technology company's reorganization aimed to improve efficiency through a flatter structure. Despite appearing beneficial, challenges arose such as unclear priorities, outdated systems, and low morale. McKinsey notes that less than one-third of such transformations successfully enhance performance. Leaders tasked with fixing teams often lack the authority to tackle fundamental issues like structure and goals, leading to persistent dysfunction. Quick reorgs may provide visible change but do not address deeper performance issues. Focusing solely on structural shifts, without cultural and behavioral changes, typically results in failure to achieve lasting improvements.
According to McKinsey, fewer than one in three organizational transformations actually succeed in improving performance and sustaining those gains, even when leaders are well-intentioned and highly motivated.
Leaders are often brought in to fix struggling teams but lack the authority to address what's actually broken: structure, goals, or even team composition.
Reorgs are fast, visible, and signal action, but shifting boxes on an org chart doesn't address deeper performance issues.
McKinsey reports that companies focusing on structural changes, without shifting behaviors, building capabilities, and evolving culture, rarely achieve lasting results.
#organizational-transformation #leadership-challenges #reorganization #team-dynamics #business-strategy
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