7 Strategies for Leading a Crisis-Driven Reorg

Based on a database of over 2,500 companies.

by

and

Matthias Qian

by

and

Matthias Qian

August 31, 2020

EVGENIY SHVETS/Stocksy

Summary.

Only 8% of crisis-driven reorganizations deliver as planned. Based on an extensive Quartz/HBR database as well as their personal consulting experience, the authors offer seven strategies for companies looking to reorganize in response to a crisis. They suggest that the most successful reorgs move quickly, but with a plan; they benchmark internally; they set different targets for different departments; they involve the full leadership team in decision-making; they allow for flexibility; they communicate quickly and humanely; and they create a positive feedback loop to course correct after implementation.

The Covid-19 pandemic has forced countless companies to reorganize at an accelerated pace. To understand what makes a crisis-driven reorganization succeed or fail, we drew on our own 15 years of experience advising companies on organizational change, as well as a database compiled by Quartz Associates and HBR documenting over 2,500 reorganizations. The database shows that crisis-driven reorganizations are a net benefit in just two thirds of cases; 19% actually damage the company, and only 8% fully deliver everything they aim to in the time planned. What can leaders do to increase their chances of success?

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PB

Peter Buchas is the Managing Director of the Quartz Efficiency Driver (QED) – a software product which gives executives the data and analysis to make human capital decisions that are both quick and rigorous.
Stephen Heidari-Robinson is the Managing Director of Quartz Associates (a consulting and software company that delivers organizational change), a visiting fellow at Oxford University, and co-author of Reorg – How to Get It Right (HBR Press, 2016) and 10 Must Reads – Managing in a Downturn.
Suzanne Heywood is the chair of Quartz Associates, Managing Director of Exor, Chair and acting CEO of CNHI and the co-author of Reorg – How to Get It Right (HBR Press, 2016) and 10 Must Reads – Managing in a Downturn.
MQ

Matthias Qian is an associate of Quartz and an Oxford University academic focused on machine learning algorithms and their application to solve real-world problems.

New!

HBR Learning

Crisis Management Course

Accelerate your career with Harvard ManageMentor®. HBR Learning’s online leadership training helps you hone your skills with courses like Crisis Management. Earn badges to share on LinkedIn and your resume. Access more than 40 courses trusted by Fortune 500 companies.

Learn how to manage uncertainty, dispel rumors, and help your team recover.

Start Course

Learn More & See All Courses

7 Strategies for Leading a Crisis-Driven Reorg

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