In my travels this winter, I saw a number of large corporations that are considering far-reaching organizational changes. IT groups are being merged with business service groups. Hybrid organizations, filled with centers of excellence and special offices, abound. People are being moved to and from business areas, and the perennial process models for IT are being dusted off and brought up to date. Silo-busting talk fills the air.
If this were just talk, there would be no harm in it. Unfortunately, some of the corporations are actually going to implement changes. And if the following types of changes are made without adequate attention to some important details, the companies will take a productivity hit, fail to meet targets, alienate their clients in the business and possibly cause a few heads to roll.
Centers of excellence: This model for providing specialized support for things like architecture continues to gain ground in the reorganizing imagination. But centers of excellence often try to take charge of things outside their domain. These units should support other activities; if they try to set the direction, they can undermine normal IT-client relations. How many voices is your IT group speaking to its clients with? Are the messages consistent? Who's really driving strategy?
Special offices: Consolidating activities within program or project management offices is also finding favor. But special offices must not become stumbling blocks to getting things done. If they aren't producing more value than the organizations they replaced, they're not worth the overhead of maintaining them. Are you measuring the value produced?
Process-driven models: IT organizations continue to organize around processes. But IT professionals deal on a day-to-day basis with others who share their domain or technical expertise. Functional silos may look old-fashioned, but they recognize this aspect of staff support, development and satisfaction. Defining and using processes does not necessarily imply organizing around those processes.
Shifting people to or from the business: Business analysts are constantly moving, to or from the business. It doesn't seem to matter how such shifts are organized, though; it's an unhappy existence. Recognize that there's no good answer to the question "Which resources belong in the business?" and learn to make it work.
Breaking the network of relationships: In any organization, there is an existing network of relationships. Some people act as information hubs; they are the go-to people to find out what's going on. Others act as monitors, gatekeepers or coordinators who ensure quality and timely process execution. Reorganizations often shift these key people so that processes break or key information ceases to flow. The informal network that rules "how it gets told" or "how it gets done" is as important as the formal structure.
Recognize that a successful reorganization is one in which productivity increases and the adjustment period is minimal. If you're planning a reorganization, ask yourself these questions:
-- What problem am I trying to fix? What am I giving up by fixing it this way?
-- What message does the new structure send to my clients? To my IT organization? How will this change behavior?
-- Does this new organization increase my team strength and depth?
Reorganizations can unleash a wave of success. Most don't. Make sure your next one stands a fighting chance to achieve its goals.
Bruce A. Stewart is a former CEO and onetime senior vice president and director of executive services at Meta Group Inc. He is now an executive adviser in Vancouver, British Columbia. He can be contacted at bruce@bastewart.com.