Changing an organization’s structure seems to be the common knee-jerk response to internal issues. My prior company embarked on a reorganization to eliminate arbitrary site- and function-based structures so that we could align around corporatewide value creation processes.

During the restructuring process, an organization typically inserts a new management layer, such as a chief operating officer (COO). Think about this from a “respect for people” perspective. The now-lower heads of each functional group no longer receive the mentoring of the CEO. They have been diminished in stature, and their voices and concerns have to go through another layer to be heard by top management. This is not likely to solve any of the
internal problems facing a company.

If you look at the root causes to internal problems, you’ll often find that certain groups and their leaders aren’t communicating effectively. They aren’t aligned, and changing the organizational structure will not change that one iota. In fact, it will just shift the problem around and probably create new troubles.

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