Re-Org Compression theory holds that when an organization compresses the length of time between organization re-alignment, it effectively squeezes productivity, collaboration and adhesion to longer term strategic objectives. Re-Org compression also relieves any executive accountability with past actions, taken on behalf of the business, fostering a “that was before my time” syndrome.
Findings from large scale successful corporations such as G.E., Nike, McDonald’s, Boeing (all considered “category heavyweights”) suggest that the optimal period of time between organizational re-alignment is between 24 and 36 months-thus avoiding the unnecessary chaos that results with the shorter intervals mentioned above.
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