Why do 75% of organizational restructuring initiatives fail?

Research reveals that 92% of organizations implement organizational restructuring initiatives every year but 75% of those initiatives fail, including mergers, acquisitions and internal reorganizations. Common integration challenges include identifying the right people for the right roles and completing the restructuring process in a timely manner.

Source: Boston Consulting Group, Harvard Business Review

The solution

Our patent-pending AI algorithm runs an employee-level simulation of the organizational restructuring, optimizing variables proposed by the Integration Managers and operational leaders. The results are displayed using Organizational Network Analysis (ONA), a technology that allows the visualization and analysis of employee-level interactions.

The visualizations are provided through Cognitive Network Analyzer ™, a scalable cloud-based platform with embedded AI capabilities for organizational analysis and restructuring. The platform integrates advanced features for visualization, analysis and export of results.

Source: Cognitive Talent Solutions

Cognitive Network Analyzer ™ provides the Integration Team and the operational leaders with recommendations on potential matches between employees and available positions in the new organizational structure. This accelerates in a significant manner decision-making throughout the restructuring process, resulting in turn in a notable decrease in implementation time.

In contrast with the traditional approach, employees in the target company are provided full visibility on how the selection process was taking place, reducing the level of uncertainty and increasing the level of engagement. This in turn impacts in a positive manner the productivity levels during the integration and reduces in a significant manner the levels of undesired employee turnover, eventually leading to an increase in shareholder value. Last but not least, by avoiding non value added workloads the Integration Managers and the operational leaders can focus more time and energy on core activities, thus contributing to a smoother implementation and higher levels of employee engagement.

In summary, the employee-level simulation of organizational restructuring scenarios enables companies to move from a biased, time-consuming and expensive restructuring process to an informed, agile and efficient one.

Source: Cognitive Talent Solutions

Case study: Accelerating a multibillion-dollar Telecom merger in Europe

In this case study documented with our partner IntegrationSuccess, our patent-pending algorithm helped accelerate a mutibillion-dollar merger in the telecom industry. By simulating complex organizational restructuring scenarios, the algorithm provided Integration Managers and operational leaders with a series of onboarding lists based on previously agreed prioritization criteria. Business executives with 20+ years of experience documented a total of $63M dollar in cost avoidance savings, accounting for 3% of the deal value ($1.8Bn). This is a summary of the documented benefits:

Source: Cognitive Talent Solutions

Categories: Blog

Francisco Marín

Francisco Marín is the co-founder and CEO of Cognitive Talent Solutions, a startup focused on the implementation of Organizational Network Analysis (ONA) solutions powered by AI.

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