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Managing the Restructure Aftermath: 4 Things You Must Do Right Away
- 1. MANAGING THE RESTRUCTURE AFTERMATH Four things organizational leaders can do right away
- 2. Cathy has worked with matrixed organizations for more than 10 years, and has helped leaders at all levels of the organization. She consults with senior leadership teams to define horizontal governance structures and create project systems. She is an expert trainer and facilitator who has developed collaborative leadership skills in project management, decision making and innovating business solutions. She also coaches leadership teams on maintaining a new paradigm for managing and leading without authority. Presented by: Cathy Cassidy
- 3. In the past five years, has your organization as a whole or within a particular function restructured?
- 5. Chaos, Confusion A Paralyzed Organization
- 7. Conflicting priorities among team members
- 13. Not Focusing on the Horizontal Dimension Leads To… Too many initiatives and projects Conflicting priorities Too many #1 priorities Over-committed resources Inefficient business processes Lack of cooperation across functions Leaders prioritizing individual goals
- 14. •Prepare leaders and professionals at every level to understand the horizontal dimension and the new way they need to work together. Manage the Restructure Aftermath
- 15. •Prepare leaders and professionals at every level to understand the horizontal dimension and the new way they need to work together. Create a leadership development strategy to develop the capability to lead and work without authority. Manage the Restructure Aftermath
- 16. •Prepare leaders and professionals at every level to understand the horizontal dimension and the new way they need to work together. Create a leadership development strategy to develop the capability to lead and work without authority. Operationalize the matrix and give clarity, focus and structure to the horizontal dimension. Manage the Restructure Aftermath
- 17. •Prepare leaders and professionals at every level to understand the horizontal dimension and the new way they need to work together. Create a leadership development strategy to develop the capability to lead and work without authority. Operationalize the matrix and give clarity, focus and structure to the horizontal dimension. Develop internal capability to facilitate the organizational change needed to improve operational effectiveness and efficiency. Manage the Restructure Aftermath
- 18. •Prepare leaders and professionals at every level to understand the horizontal dimension and the new way they need to work together. Manage the Restructure Aftermath
- 19. Concerns Our Leaders and Professionals Had…
- 22. Little or no change… PROJECTS OR INITIATIVES CROSS-FUNCTIONAL BUSINESS PROCESSES Little or no change…
- 23. DIRECTIVE LEADERSHIP COLLABORATIVE LEADERSHIPRole they have in aligning to horizontal versus vertical Shift to a new way of leading Learn tools for negotiating accountability Help them understand what’s changed and not change
- 24. •Prepare leaders and professionals at every level to understand the horizontal dimension and the new way they need to work together. Create a leadership development strategy to develop the capability to lead and work without authority. Manage the Restructure Aftermath
- 26. Collaborative Skills Relationship Management Plan & Negotiate Accountability PROJECTS OR INITIATIVES CROSS-FUNCTIONAL BUSINESS PROCESSES
- 27. Lead and Work without Authority Horizontal Dimension is Primary Talent Development Strategy Criteria
- 28. Team leaders struggling with competing priorities? Do you have too many projects and not enough resources? A lack of accountability? PROJECTS OR INITIATIVES
- 29. Create more realistic plans Define clear accountability Consensus and buy-in by team doing the work Information to negotiate team’s accountability
- 30. Is input provided from all stakeholders? Have the stakeholders been defined? Is everyone clear on what decision needs to be made…and why?
- 33. •Prepare leaders and professionals at every level to understand the horizontal dimension and the new way they need to work together. Create a leadership development strategy to develop the capability to lead and work without authority. Operationalize the matrix and give clarity, focus and structure to the horizontal dimension. Manage the Restructure Aftermath
- 34. Eliminate competing priorities Eliminate silos Eliminate ineffective processes and projects Align to new strategy What Are We Trying to Achieve?
- 35. Paradigm Shift!
- 37. Aha!!
- 38. Aha!!
- 39. Sector
- 40. •Prepare leaders and professionals at every level to understand the horizontal dimension and the new way they need to work together. Create a leadership development strategy to develop the capability to lead and work without authority. Operationalize the matrix and give clarity, focus and structure to the horizontal dimension. Develop internal capability to facilitate the organizational change needed improve operational effectiveness and efficiency. Manage the Restructure Aftermath
- 41. Vertical Rules
- 43. How is MM 2.0™ Different? Vertical only; Hierarchical and authority-based from vertical dimension Horizontal and Vertical; Vertical optimized; Hierarchical and authority-based with dual reporting Horizontal and Vertical; Vertical supports horizontal; leading without authority
- 46. •Prepare leaders and professionals at every level to understand the horizontal dimension and the new way they need to work together. Create a leadership development strategy to develop the capability to lead and work without authority. Operationalize the matrix and give clarity, focus and structure to the horizontal dimension. Develop your capability to facilitate the organizational change needed improve operational effectiveness and efficiency. Manage the Restructure Aftermath
- 47. About MMI The International Matrix Management Institute (MMI) provides up-to-date Matrix Management solutions for organizations looking to improve the way in which they operate.
Notes de l'éditeur
- Jason’s intro
- First. “In the past five years, has your organization, as a whole or within a particular function, restructured?” If you’re nodding…I’m not surprised. and here’s one more question to think about. Did it actually fix the core problems it was meant to? If you’re shaking your head or saying “no” or “not really”, I’m not surprised by this either.
- When dealing with the traditional type of restructures – the result is often –c- the centralization of one ore more functions, changing reporting relationships –c- or an addition of dual-reporting.
- With restructures like this, I have seen the how –c- chaotic, confusing and –c- sometimes paralyzing they are to an organization. Leaders struggle with understanding their roles and the changed responsibilities connected to that role, …they feel disempowered if they lost direct reports …and they are often worried about how they will be able to achieve their accountability when the resources they need to work with report into different areas, with different goals, and changing priorities.
- In most cases (probably all cases) a restructure does not solve the underlying problems it was intended to like Silos …
- Or Conflicting Priorities among team members,
- Or Long Cycle times
- In fact, restructuring is just another iteration of the –c- same root cause that was there before…. and that root cause is affecting organizations across the globe causing millions of dollars to be spent on restructuring and re-restructuring. So, what is that root cause?
- It is that organizations have a horizontal dimension but either don’t realize it or haven’t shifted the approach they are using to deal with it.
- They continue to run the business from the vertical dimension (the dimension of functional areas, authority-based reporting relationships and technical standards)
- versus the horizontal dimension (the dimension where work is done, of cross-functionality, of non-authority-based relationships)
- Some common challenges organizations face when they do not focus on the horizontal dimension include: Too many initiatives and projects Conflicting priorities Too many number 1 priorities Over-committed resources Inefficient business processes Leaders and team members struggling to cooperate across functions or departments Leaders who focus on achieving their individual goals at the expense of organizational goals. And restructuring the vertical dimension, never solves these problems.
- If you’re organization has recently restructured, is in the process of one or getting ready to begin, Organizational leaders, HR and OD professionals are in the front-line of supporting the organization after a restructure and key enablers to making any new structure to work, The four things organizations need to do no matter where you are in the process are: -c- First Prepare leaders and professionals at every level to understand the horizontal dimension and the new way they need to work together.
- Create a leadership development strategy to develop the capability to lead and work without authority.
- Operationalize the matrix and give clarity, focus and structure to the horizontal dimension.
- Develop internal capability to facilitate the organizational change needed to improve operational effectiveness and efficiency.
- Let’s explore recommendation 1.
- Think back your last restructure and to the time leading up to the restructure, and then following it. -c- What type of concerns did you hear from leaders and professionals dealing with the change? In my experience, concerns range from dealing with a loss of power and control, concerns about not have authority to tell members what to do, worry about how decisions that impact them will get made, and confusion over who to take direction from. What all these concerns have in common is a focus on what was happening in the vertical dimension.
- But in order to help the organization thrive as a matrix, both leaders and professionals need to understand the horizontal dimension. And identifying what has and has not changed is a good place to start.
- After a restructure, functional alignments change. And the people that a leader or professional worked with before now often report to a new leader.
- …But HOW they got work done before is generally the same as how they are going to get work done in the new structure.
- To prepare your leader and professionals offer training that helps them make necessary shifts and develop skills to lead and work without authority: For leaders, -c- offer programs that can help them understand the role they have in supporting the organization horizontally and –c- shift to a new way of leading, moving away from the traditional directive approach to a collaborative leadership approach. Use experiential activities to shine the light on the horizontal dimension and create alignment to the work and the relationships that exist in there and bring in structured collaborative tools and processes they can use to lead in a new way. For staff and professionals, restructures often result in them feeling victimized or threatened by the change. The goal here is to keep the business going and to minimize the negative impacts a restructure has on morale, work and output. Offer webinars and programs with a cross-functional representation –c- to help them understand what has and has not changed, introduce the new way of working and help them develop and –c- maintain an empowered state of mind so they can negotiate their own accountability.
- Let’s move onto recommendation 2: Create a leadership development strategy to develop the capability to lead and work without authority. In a matrix organization, everyone needs to lead and work without authority.
- In an organization, work happens two ways in an organization – through –c- processes and –c- projects. And this work happens across functions in the horizontal dimension and as such authority does not exist in this dimension. Now, some leaders may work with their direct reports to deliver outputs. However, everyone at one time or another will be working on projects, delivering an output from their process to another person and in the context of these teams, there isn’t formal authority or hierarchy.
- As a result of this, there are a specific set of skills everyone needs because everyone will have a role in the horizontal dimension. They will need the skills to facilitate a collaborative experience and employ a variety of different collaborative tools for different purposes. They will need to be able to build and manage partnership relationships. And they need to be able to clarify and negotiate their accountability.
- So, as you create your talent development strategy or are reviewing the one you have, I recommend using two criteria for evaluating if you are developing what you need: -c- Does the program develop the ability to lead and work without authority and –c- is it keeping the focus on operating with the horizontal dimension as the primary dimension. These two criteria can help you ensure the programs in your strategy build the knowledge and skills to thrive in a matrix. In considering this recommendation and what might be needed for your organization, here are few common areas you can examine that leaders and team members struggle with.
- Examine how projects and initiatives are doing. -c- Do you have too many projects and not enough resources? --c- Are these team leaders struggling with competing priorities? -c- Is there a lack of accountability on them?
- If so, look for a truly collaborative project management process to be implemented as the organizational standard and develop the knowledge and skill to facilitate a team through this process as this is the main role of a team leader in a matrix since there is no authority. It will help leaders and teams: -c- create more realistic plans, -c-define who is accountable for what up front, -c- build consensus about what is doable (with the people who are actually DOING the work), and –c- have the data to negotiate realistic deadlines.
- How about how decisions are made. -c- Have the stakeholders been defined? -c- Is everyone clear on what decision needs to be made…and why? -c- Is input provided from all stakeholders? In a matrix, decision making with stakeholders is a pivotal shift and having a structured process to get everyone engage can help make this shift happen.
- If there is a need to improve this, make sure your leaders and professionals have a collaborative tool and process they can use to bring a group of stakeholders together –c- to get consensus (100% can live with it) on what’s the best decision.
- Our process is called Decide and we teach leaders and professionals how engage groups in working through it together in a truly collaborative way. -c- They work together to define what is actually being decided so they are start on the same page. -c- Then they engage with stakeholders, sme’s and define criteria that can be used to evaluate options easily. -c- It will push the group to work together to identify options that can push you forward innovatively? And -c- Are it provides a way for any group to analyze and choose the best possible option given your criteria and stakeholder input? These are just two specific areas that are the most common one’s asked about after a restructure with Decision Making being number 1.
- Let’s keep going to The third thing you need to do and that is operationalize the matrix and give clarity, focus and structure to the horizontal dimension.
- When senior leaders decide to restructure, they are often trying to resolve the challenges I mentioned earlier. If you recall: competing priorities, eliminating silos, or Address ineffective and inefficient processes and projects. Sometimes they want to re-align around a new strategy. Regardless of the reasons, at the end of the most common restructuring approaches today, functional lines of business have been centralized or decentralized and new reporting relationships are defined resulting in a new vertical structure. Now, if your organizational leaders are thinking about restructuring into a matrix…here’s a tip you can use to move the discussion forward. Moving boxes around on the org chart won’t make them a matrix since they are one already and it certainly doesn’t lend itself to operating more effectively as one.
- To enable the organization to thrive after a restructure, it’s important to work with senior leaders to make a paradigm shift that helps them begin to understand the “how” of making a matrix work.
- To do this, work with senior leaders (I recommend 1st and 2nd level depending on your organizational size) that has been used to governing vertically and begin the paradigm shifting process. When we work with leadership teams at this level, the first shift we focus on them making is that the horizontal dimension, not the vertical dimension, is the primary dimension and they need to run the business from there.
- We use a simulation that demonstrate the impacts when the organization is still using their vertical dimension to run the business. In doing this, we are able to replicate the confusion, frustration, and lack of organizational results. This begins to show them how a shift to using the horizontal dimension properly to set priorities and use matrixed accountability resolves these problems. Without ever touching the org chart!
- We also have them visualize their horizontal dimension by identifying the segments that exist there and are never shown on an org chart. This helps them begin to let go of the functional groups as the primary thing to focus on and shift to focusing on the end-to-end processes that deliver products and services to customers, clients or constituents. and
- Then we discuss “how” to lead and manage the business from this dimension. Here’s a hint, it happens by creating alignment outside the functional groups within what we call sectors. A sector is externally facing strategic area of focus for an organization and you need to define horizontally focused teams – called steering councils to re-integrate the business and manage in alignment to the strategy. Regardless of the approach you use to help them make the shift necessary, it is critical to long-term operational success that this level of leadership and often one or two below, understand what really needs to change to operate differently after a restructure. Now we’re ready to examine the final recommendation.
- Develop internal capability to facilitate the organizational change needed improve operational effectiveness and efficiency among the OD and HR Business Partner community. Now, I may be discussing this as the 4th thing to be done, but it’s not the last thing. These leaders and professionals are on the front line of driving organizational change and when this group of people understand what’s needed to operationalize a new structure, the organization is in the position to help identify what needs to change but provide ongoing support to sustain it.
- First, develop your understanding of the unwritten rules leaders and professionals are following in your organization which have often been passed down for a long time. -c- These “rules” tend to maintain a vertical focus and operation and are often the hardest to change as they’ve been the way of working for so long.
- Then, learn what –c- new rules are needed to run an organization two-dimensionally with the focus on the horizontal dimension versus the vertical one. Now, let me add here: I’m not suggesting that the vertical dimension doesn’t exist. Every matrix organization is two-dimensional and needs to operate two-dimensionally, but the role of the vertical dimension needs to shift into a supporting role which is a new rule of Matrix Management 2.0 every leader needs to be playing by.
- Matrix Management 2.0™ or MM 2.0 for short is a management technology that we call an organizational operating system and it is different than the current technologies that are used by some organizations today. I’m going to compare 3: The first is the oldest system and one that’s been around since the 1950’s. We call it Vertical Management 1.0. In this system, the organization doesn’t recognize the horizontal dimension and everything is done vertically in functions using authority. But most organizations today recognize the horizontal dimension – that cross-functional dimension and have begun to update the system to what we call Matrix Management 1.0™. This is the original matrix management from the 70’s and 80’s. Although there is recognition of two dimensions, the vertical still takes precedence and the business is really run from within those functions. And authority is still the primary way in which work gets done. (This is one of the main reasons dual reporting was created). Now, Matrix Management 2.0 is different. We see the two dimensions, but the main shift in this system is that the horizontal is the primary and like I said the vertical exists to support that dimension. Leading without authority is the main way in which work gets done. When we see restructuring of the vertical dimension as the solution being used to solve operational problems, it is actually a symptom that the operating system needs to be updated. For any technology there is a group of experts that own that for an organization. IT teams or Manufacturing teams are accountability for ensuring the organization has the most up to date technology related to that aspect of the organization. Management technology is the technology of organizational development professional and depending on the size of your organization we se HR or OD as the leaders of the technology about how an organization operates. When we are armed with the right technology, it can help the organization develop into a more agile structure which allows leaders to react to strategy changes, misalignment, accountability issues, mergers and acquisitions and much more. And, it can help the organization avoid restructuring fatigue. A great place to start is to figure out where your organization may be on this continuum, and determining your matrix maturity helps.
- ©2014, International Matrix Management Institute, LLC (Ver. 1.0 2/14)
- If you’re interested in learning if and where your organization might be operating with the VM 1.0/MM1.0 or MM 2.0 operating system. We offer a free one-minute matrix assessment. It’s 10 questions and you’ll receive a link to your report. Also, given you’ve participated today, I’d like to extend my time for a 30 minute consultation to review the results and offer you some recommendations on what I think might be best for you to do next. Before I respond to some or your questions that we’ve compiled here, let me recap our four recommendations to help you manage the restructure aftermath.
- So here are the four things once again. The first recommendation was offering change-based learning for leaders and professionals across the organization. Then take a look at your leadership development strategy and include programs related to collaboration and leading without authority Get Senior Leadership’s buy-in to the need to operationalize the new structure. Become an internal resource for organizational operation with a horizontal focus. Let me open-up the floor to your questions now.