Restructuring ‘Inside-Outers’ from the Top-Down

Back to this week and you can see why there was enthusiasm coursing through the organisation when our new chairman announced that we were going to become a much more accountable, empowered and less cumbersome company delivered with the support of some extra resource.. Good news for all employees as there’d be less red-tape, so everyone can get on with their jobs. Oh and by the way, this will mean some cost savings which will keep our investors happy. So everyone’s happy. In fact I think you can quote him on that…

So glee upon optimism, it turns out we’d be best supported in turning our business around and cutting costs by employing some very high quality, consultants providing top-end services, unavailable in the company, the county, or even the UK! These guys would drive the restructure through. This would be achieved for considerably less than the £1bn that our outgoing CEO had spent on consultants to advise on restructuring the company several times in the previous 5 years. (clearly he picked the wrong consultants  – I think I remember these were parochial, national consultants rather than global, top-end ones)

So all in all 800 people lose their jobs – remember business-is-business. We gain a new structure which means that there are less layers (8 in all) and as this has been undertaken from the top downwards, the layers that get squashed the most are at the bottom, which is good because we keep the vast majority of our experienced Directors.

To ensure that we are a much more stream-lined organisation we’ve deployed a rule-set which ensures that individuals all have at least 8 direct reports, including in one example; a boss who manages 8 individuals who don’t undertake any of the work he is tasked with, but that’s inconsequential. The rules are met and everyone’s happy, a new organisation awaits.


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