Appendix A

Cost-Driven Reorgs


It is, unfortunately, often the case that at least one reason for a reorganization is to reduce costs.1 Our advice here would always be to stop and consider if there are alternatives before reducing head count, because in addition to the human cost, there are significant reputational as well as disruption costs. We have seen many organizations reduce costs without significant head-count reduction through various other means:

  • Reducing non-head-count spending (travel, training, accommodation, legal costs, consulting costs, and so on). We would always advise looking at the full set of indirect costs of the organization ...

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