Last time we began exploring the Restructuring-Fear Cycle, which shows how the fear induced by restructuring can create a need for more restructuring. In effect, organizations can become addicted to restructuring. Here's Part II of our exploration.
- Credibility erosion
- When employees notice a pattern of restructuring, many assume that their own performance, and that of their business unit, will affect decisions about their job security. Correct or not, this speculation can lead to withholding bad news, or worse, creating fictitious good news. As status reports travel up the management chain, some recipients, anticipating this shading of the truth, doubt the veracity of the reports.
- When what we say to each other becomes unreliable, managing the organization becomes truly difficult. Enterprise performance is at risk. In this way, restructuring events can degrade enterprise performance, which increases the need for further restructuring. Top-to-bottom management replacement, as in a spin-off or acquisition, is sometimes the only way to end this cycle.
- Getting things in under the wire
- Among managers who recognize that further restructuring lies ahead are those who undertake so-called game-changing projects that promise a brighter future. They're hoping, in part, to enhance their own job security. Because they typically believe that the opportunity for initiating new projects is short-lived, they tend to oversell the attractiveness of their initiatives by representing them as better developed, lower-risk, more important, and more urgent than they really are.
- This dynamic can lead the enterprise to undertake too many new efforts, many of them too disconnected from its core mission. The problems inherent in development are often understated, and the downstream costs of supporting new offerings are often underestimated. Many of these efforts come to nothing. The resources invested are wasted, which leads to enhanced necessity for further restructuring.
- Roster padding
- Within most Among managers who recognize that
further restructuring lies ahead
are those who undertake so-called
game-changing projects that
promise a brighter futureenterprises, we can usually find a most-politically-powerful entity — a brand, a business unit, or a constellation of smaller entities exploiting a single market position. To employees who fear job loss as a consequence of restructuring, the most-politically-powerful elements seem like possible havens of job security.
- Managers within the politically powerful elements thus sometimes experience a flux of jobs seekers from other business units. Before the restructuring began, some of these people would not have been obtainable at the rates being offered, or not obtainable at all. Some managers succumb to the temptation to make internal hires. When external hiring is frozen, but internal transfers are still permitted, politically powerful entities can find themselves bloated with employees and projects. Their expenses climb, and soon there is need for yet another round of restructuring.
Are your projects always (or almost always) late and over budget? Are your project teams plagued by turnover, burnout, and high defect rates? Turn your culture around. Read 52 Tips for Leaders of Project-Oriented Organizations, filled with tips and techniques for organizational leaders. Order Now!
 Weinberg, Gerald M. Quality Software Management Volume 1: Systems Thinking. New York: Dorset House, 1989. Order from Amazon.com
Your comments are welcomeWould you like to see your comments posted here? rbrenmhXARWRMUvVyOdHlner@ChacxgDmtwOKrxnripPCoCanyon.comSend me your comments by email, or by Web form.
About Point Lookout
Thank you for reading this article. I hope you enjoyed it and found it useful, and that you'll consider recommending it to a friend.
Support Point Lookout by joining the Friends of Point Lookout, as an individual or as an organization.
Do you face a complex interpersonal situation? Send it in, anonymously if you like, and I'll give you my two cents.
More articles on Emotions at Work:
- Marking Grief
- Grief is usually a private matter, but for many, September Eleventh is different because our grief can
be centered in the workplace. On September Eleventh, give yourself permission to do what you need for
yourself, and give others permission to do what they need for themselves. Here are some choices.
- The Fundamental Attribution Error
- When we try to understand the behavior of others, we often make a particularly human mistake. We tend
to attribute too much to character and disposition and too little to situation and context. When we
seek a better balance, we can adopt a more accepting view of events around us.
- Irrational Self-Interest
- When we try to influence others, especially large groups or entire companies, we sometimes create packages
of incentives and disincentives that are intended to affect behavior. These strategies usually assume
that people make choices on rational grounds. Is this assumption valid?
- How to Avoid a Layoff: The Inside Stuff
- These are troubled economic times. Layoffs are becoming increasingly common. Here are some tips for
changing your frame of mind to help reduce the chances that you will be laid off.
- What Enough to Do Is Like
- Most of us have had way too much to do for so long that "too much to do" has become the new
normal. We've forgotten what "enough to do" feels like. Here are some reminders.
Forthcoming issues of Point Lookout
- Coming August 21: Perfectionism and Avoidance
- Avoiding tasks we regard as unpleasant, boring, or intimidating is a pattern known as procrastination. Perfectionism is another pattern. The interplay between the two makes intervention a bit tricky. Available here and by RSS on August 21.
- And on August 28: Playing at Work
- Eight hours a day — usually more — of meetings, phone calls, reading and writing email and text messages, briefing others or being briefed, is enough to drive anyone around the bend. To re-energize, to clarify one's perspective, and to restore creative capacity, play is essential. Play at work, I mean. Available here and by RSS on August 28.
I offer email and telephone coaching at both corporate and individual rates. Contact Rick for details at rbrenmhXARWRMUvVyOdHlner@ChacxgDmtwOKrxnripPCoCanyon.com or (650) 787-6475, or toll-free in the continental US at (866) 378-5470.
Get the ebook!
Past issues of Point Lookout are available in six ebooks:
- Get 2001-2 in Geese Don't Land on Twigs (PDF, )
- Get 2003-4 in Why Dogs Wag (PDF, )
- Get 2005-6 in Loopy Things We Do (PDF, )
- Get 2007-8 in Things We Believe That Maybe Aren't So True (PDF, )
- Get 2009-10 in The Questions Not Asked (PDF, )
- Get all of the first twelve years (2001-2012) in The Collected Issues of Point Lookout (PDF, )
Are you a writer, editor or publisher on deadline? Are you looking for an article that will get people talking and get compliments flying your way? You can have 500 words in your inbox in one hour. License any article from this Web site. More info
- The Race to the South Pole: Lessons in Leadership
- On 14 December 1911, four men led by Roald Amundsen reached
the South Pole. Thirty-five days later, Robert F. Scott and four others followed. Amundsen had won the
race to the pole. Amundsen's party returned to base on 26 January 1912. Scott's party perished. As historical
drama, why this happened is interesting enough. But to organizational leaders, business analysts, project
sponsors, and project managers, the story is fascinating. We'll use the history of this event to explore
lessons in leadership and its application to organizational efforts. A fascinating and refreshing look
at leadership from the vantage point of history. Read
more about this program. Here's a date for this program:
- Baldwin-Wallace University, 275 Eastland Road, Berea, Ohio
44017: November 7,
Kerzner Lecture Series/International Project Management Day, sponsored by Baldwin Wallace University and the Northeast Ohio Chapter of the Project Management Institute.
- Baldwin-Wallace University, 275 Eastland Road, Berea, Ohio 44017: November 7, Kerzner Lecture Series/International Project Management Day, sponsored by Baldwin Wallace University and the Northeast Ohio Chapter of the Project Management Institute. Register now.
- The Power Affect: How We Express Our Personal Power
- Many people who possess real organizational power have a characteristic demeanor. It's the way they project their presence. I call this the power affect. Some people — call them power pretenders — adopt the power affect well before they attain significant organizational power. Unfortunately for their colleagues, and for their organizations, power pretenders can attain organizational power out of proportion to their merit or abilities. Understanding the power affect is therefore important for anyone who aims to attain power, or anyone who works with power pretenders. Read more about this program.