Organization Restructuring_ Guest Speaker at Haas/Berkeley.


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Presentation of a guest lecture for Dr. Fellow's class at Haas Business School/Berkeley.

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  • A little detail on my background: Financial engineer turned product innovator and organization consultant and leadership coach. 10+ years in business management, marketing, product innovations. Currently, organizational consultant and leadership coach for social enterprises and start-ups. Healthy appetite to see how the world works around me, inspired to help impact the hardest/most complex and highest value ‘problem to solve’: helping organization be more functional, effective, resilient, and happy  More relevantly, in my professional career, I have worked at Fortune 500 +, start-ups, tech companies and experienced first hand organization restructure – from the perspective of individual contributor, manager, leadership, and consultant. I am here to share with you my own experience on this topic and some of the take-away. I’ll leave some time for questions at the end as well. A quick scan my experience & context:
  • JPMorgan & Chase Merger in 2000: I was an intern on Wall Street with JPMorgan when the company announced the merger with Chase. It was one of the first merger of a Investment and commercial bank. Despite the strategic rationale around the merger (cross-selling, synergy, operation efficiency, economy of scale, geographical diversification, etc.), Due to deregulation, the industry has begun series of M&A and consolidation. Behind the scene, there was a lot of cultural misalignment. Although Chase “bought” JP Morgan for $59 billion. (JPM) Prestigious brand was having a hard time with associating with their Chase colleagues. Despite 8 months after the merger, it still seems like there is an electric fence between the two sides of the company.
  • Yahoo! Was an early thinker in the mobile space. It acquired a mobile start-up with the mission to create the gateway to mobile internet. I joined Yahoo! In 2008, in the mobile start-up division as a product lead. I work with a small nimble team (engineers, designers, marketer) to launch Y!’s first iPhone app called OneConnect. The days of staying up till the early mornings, energetic about moving things forward, to unveil our app at a mobile congress still remained one of the most adrenaline filled moment in my career. The mobile division was insulated from the rest of the organization and was insignificant, from a business perspective (1 million users vs. 30 million) for us to be left alone. We were a happy bunch. As many of you know, Yahoo!’s mobile strategy was ‘too early’ and not realized the potential of what leadership imagined. Subsequently, the mobile strategy evolved into one that emphasized on optimizing the value of mobile with its existing properties (Yahoo! HP, Mail, etc.) So this was a case re-integration… the announcement was high level (that the mobile division has been dissolved and will be re-absorbed by the properties). This strategic move was top-down and was not thoughtfully designed. The business leaders or fighting for turfs. Result? Very talented engineers, product managers, etc. left the company. Integration Is The Enemy of Innovation (?)The Flickr team was focused on integration not innovationCorporate Development strategyteam backed synergies in the priceFocus on monetization
  • Reorganization should not be viewed as an ad hoc endeavor, but rather as part of the continuous process of transformation — of constant improvement, innovation, and adaptation — that every enterprise must engage in. At a time when unceasing volatility and accelerating competitive forces have become the new normal, reorganization will, by necessity, become more frequent, more fundamental, and faster.“
  • It’s all about leadership and culture. Once again, the soft skills determine hard results.
  • While restructuring and re-organization help fulfill business and strategic objective. The success is determined by people’s resilience and adaptability to changes. Some of the emotions experienced: Anxiety, uncertainty, need to control, territorial, identity crisis.
  • This spirit of participation and involvement extends on through clarifying roles and responsibilities and designing the organization layer by layer. Successful organizational change efforts don’t do it to people they do it with people. This springs from a deep underlying set of beliefs that either values people as human beings and partners with them or sees people as “human capital” — assets with skin to be moved around on organizational charts like pawns in a chess gameRead more at
  • It’s all about leadership and culture. Once again, the soft skills determine hard results.
  • Final thoughts … it’s important work met with a lot of skepticism. Organization restructuring is ubiquitous BCG Study: > 90% of companies with 1,000+ employees had changed their org structure in the past year. On average, I had 3+ bosses per year 70% + organization change efforts fail
  • Organization Restructuring_ Guest Speaker at Haas/Berkeley.

    1. 1. Case Studies: JP Morgan Chase, Yahoo!, Organization Restructuring Guest Speaker to Dr. Fellow Haas Business School: Summer 2013 Hsiang-Yi Lin
    2. 2. Introductions 2000 2009 2013 2012
    3. 3. Corporate Merge 2000
    4. 4. • 5x the size of relationships matrix • Overlap and/or unclear R&R and accountability • Lack of dedicated resources Startup Acquisition 2008
    5. 5. Strategic Alignment 2012+ • New culture orientation • New capabilities • New organization design Organization Goal: 5,000 Savers in 10 year  1,000,000 Savers in 10 years Business Strategy: Product-orientated model leveraging technology
    6. 6. Common Mistake # 1  Mistake: Senior executives impose reorganization and restructuring from the top down.  Result: Blind spots on day to day operation effectiveness due to lack of knowledge of the inner working of the organization (processes, systems, decision making, etc.).  Instead Try: Enlist middle managers, key support staff, connectors of the organization throughout the analysis, planning, and implementation process. The engagement process serves two purposes: input & buy in.  You can’t buy in till you have a chance to weigh in!
    7. 7. Common Mistake # 2  Mistake: Unrealistic expectation to monetize and expectations for quick wins. Sustainable change management and leadership efforts take time and hard work.  Result: Not take account of organization inertia and create organization confusion and panic.  Instead Try: Incorporate change efforts explicitly and deliberately on leadership agenda. It’s a continuous process to transform organizations – constant improvement, innovation, and adaptation.
    8. 8. Common Mistake # 3  Mistake: Senior executives fail to communicate strategic vision (the ‘why’ behind the change) clearly and repetitively, in a fashion that ties directly to people’s day to day.  Result: Disconnected and resistance to change as an employee does not understand the ‘why’ and ‘why me’.  Instead Try: Strategic Planning is different from Strategic Visioning, the latter goes beyond the goals and #s to paint a picture for the future that matters to the people. Communication of vision needs to be multi-channel, personal (rationale + emotive), and consistent so it can breakthrough
    9. 9. What is Common?
    10. 10. Successful organizational change efforts don’t do it to people they do it with people.
    11. 11. Clear about Business Strategy & Objective Tie Business Strategy to Organization Design Consider Impact to Think about Organization Culture & In Summary …. 1 2 3 4
    12. 12. Questions? Hsiang-Yi Lin