• The two drivers for Restructuring or M & A are 1. Current Performance Improvement or 2. Business re-invention.
• Study after study puts the failure rate of mergers and acquisitions somewhere between 70% and 90%.
• Similarly restructuring failure rates are between 20% & 80% depending on the organisations Maturity.
• The two root causes of these failures are 1. The wrong structure selection and design and 2. Poor integration execution.
• To lower the risk of failure, we see that Organisations that are successful at restructuring and Integrations have Capabilities Maturity at Levels 5, 6 and 7 and each org unit’s maturity are brought into alignment at the higher integrative levels.
A good starting point for each organisation or organisation unit is to select a 'Full Triage Assessment'. This OrgCMF™ Maturity Assessment which will enable you to understand the baseline Capability Maturity for the component parts in your planned (Re) Structuring & Integration. Critically it will tell you have the units got an integrative capacity and guide each so that an integrative level of maturity alignment can be achieved, significantly increasing the success potential for (Re)Structuring & Integration
Understanding each of the existing organisation's (or organisation units) context in terms of performance and KPIs' is a critical starting point, as it informs the setting of the Goals & Plans for Integration. Clearly stating the problem or opportunity in the context of current performance and target outcomes for the (Re)Strucured and Integrated organisation will support alignment of stakeholders in achieving a successful organisation integration.
Current Organisation or Organisation Unit's Capabilities and their related Maturities determine the current functioning level and performance. Knowing these Capabilities and Maturities are essential for understanding the existing constraints on the Organisation's ability to make changes and integrate across organisations or units, and it enables the team take a systems view of what Capabilities may be missing or need Maturity Improvement, to achieve an integrative capacity. The selection, configuration and management of any OrgCMF™ Assessment can be completed in a matter of minutes on-line. The 'Full Triage Assessment' is a Configurable Assessment Plan where you can create a bespoke Integration Maturity Assessment for your organisation, or as we recommend select all 15 Organisation Dynamics and configure a separate, but consistent Assessment for all Organisations or Units under consideration.
Once you configure and publish each OrgCMF™ Capability Maturity Assessment your invited participants will receive and email link to complete their Organisation specific Maturity Assessment, they will also be able to see the real-time report for their Organisation or Org. Unit and its recommendations if you permit them. Also you may invite Report Viewers who you wish to see the Reports but not participate in the Assessment.
Once you have closed (Completed) your Assessment your team can review existing Capabilities and their Maturities and consider the specific Report Guidance. Organisations or Organisation Units with Maturity Levels of 5, 6 and 7 have Integrative Capacity and can be said to be ready for Restructuring and Integration. By analysing each Organisation/Unit's Maturity Assessment report your leaders can guide the building of each Organisations to an integrative level and towards alignment. The reports enable prioritization and provide specific guidance for each Dynamic.
Organisation Capability Maturity Improvement is a system-wide activity and touches many stakeholders. The OrgCMF™ Assessment Reports and the Body of Knowledge is such that it provides useful knowledge to most stakeholders as regards their roles in improving capabilities. That said it is essential that the overall Improvement program actions have ownership, accountability and responsibility and this permeates through and across the organisation as appropriate. The structure of OrgCMF™ is such that this can happen at Model, Dynamic or Construct level. As stakeholders build operational Capability Maturity working on the ‘Constructs’ (Capability Building Blocks) for their roles and activities traction and sustainable improvement is achieved.
Improving Capability Maturity at any level in the Model, will improve its Integrative Capacity. As responsible individuals and their teams focus on the 'Constructs' (Capability Building Blocks) they can carry out more specific 'Diagnostic' Tier Maturity Assessments' if required, and receive more specific, detailed and Calibrated action guidance at this 'Building Block' level for the specific constructs. As the maturity of each related element of the system improves so does the system's overall. We recommend short implementation 'Sprints' leveraging some key 'Agile techniques' to allow for flexibility and responsiveness in this change and improvement process, and also learn and experience some of the practices that relate to Agility. Until leadership have determined that all Organisations/units have reached a level of integrative capacity , each should focus on their individual Maturity Improvement Plan, once reached then all can start the integration process and migrate to the single new Organisation Plan.
As with all effective methodologys' for change and improvement, some level of governance is required to monitor and assure the desired outcomes and results are being achieved both with Capability Maturities and the Target Objectives and KPIs' for improvement. Given this specific program relates to (Re)Structuring & Integration, monitoring each Organisation/Unit's performance individually is important, until Integration Alignment is achieved and the migration has started , its at this time a Single set of Plans and Targets come into effect for the Business, Operations & Capabilities.
Restructuring & Integration Leaders should monitor Capability Improvement Implementation across each Organisation/Unit to inform any decision to trigger alignment and move to a a Single set of Plans and Targets come into effect for the Business, Operations & Capabilities.
The approach presented the 'Organisation Capability Improvement Method' (OCIM™) is not rocket science, however by focusing on Organisation Capability Maturity Improvement and leveraging the OrgCMF™ Maturity Assessment platform you and your organisation are using the most advanced and latest 'Management Science' - 'Dynamic Systems Maturity Theory' (DSMT™).
Research indicates that effective and sustainable Restructuring & Integration is achieved only at the higher Maturity levels of OrgCMF™ (levels 5, 6 & 7). Also that building Integrative Capacity is about building Capability Maturity in a sequential manner as expressed on organisation learning theory.