Restructuring Team Quotes

In early 2002, as part of a new personal ritual, he took time after the holidays to think and read. (In this respect, Microsoft’s Bill Gates, who also took such annual think weeks, served as a positive example.) Returning to the company after a few weeks, Bezos presented his next big idea to the S Team in the basement of his Medina, Washington, home. The entire company, he said, would restructure itself around what he called “two-pizza teams.” Employees would be organized into autonomous groups of fewer than ten people—small enough that, when working late, the team members could be fed with two pizza pies. These teams would be independently set loose on Amazon’s biggest problems.

Build your team. If you are inheriting a team, you need to evaluate, align, and mobilize its members. You likely also need to restructure it to better meet the demands of the situation. Your willingness to make tough early personnel calls and your capacity to select the right people for the right positions are among the most important drivers of success during your transition and beyond.

The R6 Resilience Change Management Framework is a cyclical framework that consists of six iterative puzzle pieces: 1. Review the Macro/Micro Changes: This iteration emphasizes the importance of scanning (mostly) the external environment to identify emerging trends, disruptions, and opportunities. By understanding the broader context in which the organization operates, leaders can anticipate future challenges and proactively adapt their strategies. There should never be a time in the organizations existence where it stops reviewing the macro changes. There are times, though, when micro changes (internal) are where the focus needs to be. 2. Reassess the Business’ Capabilities in the Context of Macro Changes: This iteration is fundamentally about “who are we, and how can we really add value?” It also involves a critical evaluation of the organization's strengths, weaknesses, opportunities, and threats in light of the identified macro changes. This reassessment helps to identify areas where the organization needs to adapt or transform its capabilities to remain competitive. This iteration is largely inward-looking, focused on the organization. But it tempered with the idea that “how do our capabilities allow us to add value to our customers lives (existing or new).” 3. Redefine Target Market(s) Based on Reassessment of Capabilities: This iteration focuses on aligning the organization's target markets with the evolving needs and preferences of customers, the changing competitive landscape, and the new reality of the businesses capabilities. This may involve identifying new customer segments, developing personalized offerings, creating seamless omnichannel experiences, or approaching the same target market in new ways (offering them new kinds of value, or the same kind of value in new ways). 4. Redirect Capabilities Toward Redefined Target Market: This iteration involves realigning the organization's resources, processes, and strategies to effectively serve the redefined target markets. This may require investments in new technologies, optimization of supply chains, or the development of innovative products and services. 5. Restructure the Organization: This iteration focuses on adapting the organization's structure, culture, and talent to support the desired changes. This may involve creating agile teams, fostering a culture of innovation, or empowering employees to make decisions through new policies. 6. Repeat in Perpetuity – or – Render Paradigm Shift [R6-RPS]: This iteration underscores the importance of continuous monitoring, evaluation, and adaptation. The R6 framework is not a one-time process in response to a change event, but an iterative cycle that enables organizations to remain agile and resilient in the face of ongoing change. Additionally, there are times when before repeating the cycle, a business may want/need to render an external paradigm shift by introducing a product or service or way of doing things that fundamentally changes the market – fundamentally changes the value exchange between customers, employees and organizations.

we had to unlearn a great deal of what we thought we knew about how war—and the world—worked. We had to tear down familiar organizational structures and rebuild them along completely different lines, swapping our sturdy architecture for organic fluidity, because it was the only way to confront a rising tide of complex threats. Specifically, we restructured our force from the ground up on principles of extremely transparent information sharing (what we call “shared consciousness”) and decentralized decision-making authority (“empowered execution”). We dissolved the barriers—the walls of our silos and the floors of our hierarchies—that had once made us efficient. We looked at the behaviors of our smallest units and found ways to extend them to an organization of thousands, spread across three continents. We became what we called “a team of teams”: a large command that captured at scale the traits of agility normally limited to small teams.

The entire company, he said, would restructure itself around what he called “two-pizza teams.” Employees would be organized into autonomous groups of fewer than ten people—small enough that, when working late, the team members could be fed with two pizza pies. These teams would be independently set loose on Amazon’s biggest problems. They would likely compete with one another for resources and sometimes duplicate their efforts, replicating the Darwinian realities of surviving in nature. Freed from the constraints of intracompany communication, Bezos hoped, these loosely coupled teams could move faster and get features to customers quicker. There were some head-scratching aspects to Bezos’s two-pizza-team concept. Each group was required to propose its own “fitness function”—a linear equation that it could use to measure its own impact without ambiguity. For example, a two-pizza team in charge of sending advertising e-mails to customers might choose for its fitness function the rate at which these messages were opened multiplied by the average order size those e-mails generated. A group writing software code for the fulfillment centers might home in on decreasing the cost of shipping each type of product and reducing the time that elapsed between a customer’s making a purchase and the item leaving the FC in a truck. Bezos wanted to personally approve each equation and track the results over time. It would be his way of guiding a team’s evolution.

Paperback 204 pages ISBN: 9780996871839 Available in print, digital and audiobook formats If you have ever experienced infighting, such as a team ora department pitting itself against another team or department; if you have ever worked for a micromanaging and overbearing boss; if you have ever navigated the changes that come with a merger or other significant restructuring process, then you have had a front-row seat to organizational drama. David Emerald’s 3 Vital Questions: Transforming Workplace Drama was written for you! “It is impossible to describe what a profound impact the 3 Vital Questions have had on my life, personally and professionally.” —Chris Nagel, Director of Leadership & Team Development, Cleveland

What e-mail was Ryan Siurek talking about? Siurek, an architect on the Raptors, had been speaking with Andersen accountants about some technical detail involving $1.2 billion booked as “notes receivable” from the Raptors, or commitments to pay Enron, which related to the company’s agreement to contribute stock to the entities. That had resulted in Enron’s increasing its reported equity by the same amount. Siurek said he had raised the issue during the March restructuring in an e-mail to Patricia Grutzmacher, a member of the Andersen team.

When we talk with school officials and local politicians about restructuring large high schools, the first thing they worry about is what will happen to the basketball or baseball teams, the after-school program, and other sideshows; that the heart of the school, its capacity to educate, is missing, seems almost beside the point.

A management team brought in by George to restructure Lucasfilm seemed concerned mostly with cash flow, and as time went on, they became openly skeptical that our division would ever attract a buyer. This team was headed by two men with the same first name, whom Alvy and I nicknamed “the Dweebs” because they didn’t understand a thing about the business we were in. Those two guys threw around management consulting terms (they loved to tout their “corporate intuition” and constantly urged us to make “strategic alliances”), but they didn’t seem at all insightful about how to make us attractive to buyers or about which buyers to pursue. At one point, they called us into an office, sat us down, and said that to cut costs, we should lay off all our employees until after our division was sold—at which point we could discuss rehiring them. In addition to the emotional toll we knew this would take, what bugged us about this suggestion was that our real selling point—the thing that had attracted potential suitors thus far—was the talent we’d gathered. Without that, we had nothing. So, when our two like-minded overlords demanded a list of names of people to lay off, Alvy and I gave them two: his and mine.

On top of the potential for restructuring the business, there are significant bloated costs to trim. General Insurance is paying for expensive sponsorship deals with sports teams that offer little benefit. It needlessly maintains two Gulfstream private jets. Some managers work four days a week because their workloads are perennially light. Bonus plans have targets that are far too easy to meet. Pensions are inexplicably overfunded, and the company’s contributions to pension programs can be scaled back to the lower end of targets set by regulators. The IT department is overstaffed and full of pet projects that the business will never realize value from. Low-grade IT can be outsourced to Asia.

Specifically, we restructured our force from the ground up on principles of extremely transparent information sharing (what we call “shared consciousness”) and decentralized decision-making authority (“empowered execution”).

Why is that person in our organization if he or she is not contributing? What is the impact of a negligible producer on other team members? What can we do to enhance that person’s contribution? Do we move him to another “position,” restructure his current job, or make other fundamental changes that would amplify that person’s contributions? Should that person be removed from our team?

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When you don’t prepare for breakpoints—don’t warn the team, don’t thoughtfully restructure the org around roles first and individuals second, don’t add new managers, don’t reassess your meetings and communication tools, don’t give people access to training or coaches, don’t actively work to preserve your culture—then the consequences are clear: In their quest to keep people happy, I’ve seen leaders build their org around existing employees instead of first figuring out what the optimal structure should be and fitting their team into those roles. Then roles and responsibilities overlap, there’s a ton of redundancy in the upper levels, they have to invent weird new titles for people, and nobody knows what they should be working on. Work slows to a crawl. Employees complain that the culture is dead. People start to quit. Panic sets in and it can feel like a full-blown crisis.

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