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Money Talks from The Economist

Money talks: We wish you a merry reorganisation

Money Talks from The Economist

The Economist

News, Business, Economy, Finance & Economics, Business News

4.41.2K Ratings

🗓️ 29 December 2016

⏱️ 18 minutes

🧾️ Download transcript

Summary

In a Money talks special, Anne McElvoy brings in Suzane Heywood and Stephen Heidari-Robinson, authors of Reorg: How to get it right. They delve into the art and science of reorganising a business

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Transcript

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0:00.0

This is a passenger announcement. You can now book your train on Uber and get 10% back in credits to spend on Uber eats.

0:11.0

So you can order your own fries instead of eating everyone else's.

0:15.0

Trains, now on Uber. welcome to this Money Talk special.

0:30.0

Coming up on the program with New Year's resolutions in the air for businesses around the world,

0:34.7

we'll be digging into the world of reorganization from prizes.

0:39.1

Reorganizations if done right are a very good way to unlock value in an organization.

0:45.0

To pitfalls.

0:46.0

Where it's going well you see the fruits, where it kind of drags on, people are depressed and you can't spot a difference,

0:50.0

then you know it hasn't gone so well.

0:52.0

And that's what we're saying you should

0:53.8

avoid. You should only reorganize if you're very very clear what the purpose of the reorganization

0:58.8

is. In today's business environment systems and practices can be lovingly designed

1:05.8

and still last no time at all before becoming obsolete. But as the Roman writer

1:10.5

Petronius put it rather long ago.

1:13.4

We tend to meet any new situation by reorganizing, but what a method it can be for creating the

1:19.6

illusion of progress while producing confusion, inefficiency and demoralisation.

1:25.0

So how can we reorganize businesses without the confusion and the inefficiency setting in?

1:31.0

And how can business people talk about job losses without sending

1:34.9

their entire staff into a panic.

1:37.4

And how can upheaval and cynicism be kept to a minimum while we get to the core of a company's

1:42.3

problem? My guests think they have the answer. minimum while we get to the core of a company's problem.

1:43.6

My guests think they have the answer.

...

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