Motorola CEO Edward J. Zander What are the tradeoffs that need to be considered when making the decision to restructure to best implement the strategy instead of viewing the organization as a data and develop a strategy while keeping the structure fixed? There are many organizations currently operating on business models and strategies developed several or many years ago. These models and strategies can work, but can they be better? Over the past decade, information technology has advanced, e-business models have exploded, the Internet is on fire, and CEOs have changed so fast it's dizzying. Should an organization's new CEO consider a restructuring to better implement a strategy for evolving business practices or simply continue with the organization as is? Before deciding, a CEO must clearly consider whether this will “enhance profitability, improve business returns, lower the organization's break-even point, reduce financial and operational risks, and increase shareholder value” (www. solvency.com). To use a healthcare analogy, the CEO needs to decide whether the company is in need of life support (needs a restructuring) or just has a simple cold (may just need some changes in business practices ). There are several benefits of organizational restructuring..
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