3
Step 1
Construct the Reorg’s Profit and Loss
First, a quiz for you. For your current reorganization, or one you have been involved with before, what answer would you give to the following questions?
How precisely did you define the value the reorganization was supposed to bring?
0: No value defined; reorg simply seen as a good thing to do.
1: Some ideas about where value would come from (e.g., better sales productivity), but not quantified.
2: Overall value target set for the reorganization (e.g., reduce head-count cost by 10 percent), but not broken into specifics.
3: Value precisely defined and quantified (e.g., $x million cost savings ...
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