Han Yuan, Chief Product and Technology Officer, discusses reorganizations. They explore reasons for reorgs, organizational behavior, and advice on planning. Topics include Conway's law, theory of constraints, and organizing software teams based on technology or user journeys. Metric measurement and lessons learned are also discussed.
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Quick takeaways
Reorganizations can be driven by various reasons such as operational efficiency, financial health, strategic shifts, M&A, or technological changes.
The closure of research-focused teams during reorganizations can occur when their work is no longer perceived as valuable or aligned with company goals.
Successful reorgs involve clear communication, transparent decision-making, and considering factors such as market success, employee happiness, and team dynamics.
Deep dives
Defining a reorg and its reasons
A reorg is a shuffling of roles and responsibilities that impact more than two groups, often driven by reasons such as operational efficiency, financial health, strategic shifts, M&A, or external changes like technological shifts. For example, companies may reorganize to enhance operational efficiency by rethinking asset organization and reducing costs. They may also undergo reorgs to improve financial health by downsizing and reassigning roles. Strategic shifts like entering new markets or embracing new technologies can also trigger reorgs.
The impact of reorgs on research-focused teams
Reorganizations can sometimes lead to the closure of research-focused teams, even if they were generating cutting-edge research. Economic headwinds or priorities may shrink the window of opportunity for these teams to generate significant results. The company may no longer view these teams as helping make money, save money, or save time, leading to their closure. However, there are cases where innovative teams are protected if they are seen as essential loss leaders or have board-level support.
Deciding which groups are impacted in a reorg
Leadership teams decide which groups to impact in a reorg based on various factors, including problem statements, financial considerations, and efficiency improvements. Problem statements help describe the need for a reorg, while financial considerations evaluate spending, often targeting departments with high costs. Efficiency improvements focus on reshuffling responsibilities and roles to optimize workflow and remove bottlenecks. Successful reorgs involve clear communication and transparent decision-making to ensure everyone understands and accepts the reasons behind the group impacts.
The role of architecture in reorgs
During reorgs, architecture teams play a vital role in aligning teams, coordinating efforts, and addressing constraints. They help ensure that teams are structured based on user journeys and that the right expertise is available for each domain. However, the challenge lies in preventing the architecture group from becoming a limiting factor due to lengthy processes or approval requirements. Properly managed, architecture teams can enhance collaboration and drive efficiency by identifying constraints and finding ways to remove them.
Measuring the success of a reorg
The success of a reorg can be measured in different ways. Market success after a reorg can indicate its effectiveness, but it's important to consider other factors like employee happiness and improved team dynamics. Employee feedback and morale play a crucial role in assessing whether a reorg met its objectives. However, frequent rehiring of employees who were previously let go can suggest a lack of effective planning and execution. Success is also determined by how efficiently and transparently the reorg was communicated to the employees involved.
Han Yuan, an accomplished Chief Product and Technology Officer, joins host Priyanka Raghavan to discuss reorganizations. The conversation starts with a broad discussion of reorganizations and reasons that companies choose to undertake them. They then consider organizational behavior and topics such as Conway's law and the theory of constraints. Han offers some advice on key steps to take when planning for a reorg, including how software teams could organize themselves based on technology, frameworks, or user journeys. The episode ends with some discussion of metrics and lessons learned. Brought to you by IEEE Computer Society and IEEE Software magazine.
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