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Turning a failing organization around is one of
the most interesting activities in management. When organizations
see themselves in that downward spiral, their managers may feel
that they are unable to stop the pace of negative change. That
worry and that downward momentum can be very powerful. At the same
time, it sometimes takes only a key impetus to deflect that
movement and turn things around. Consider the following scenario:
You have recently been hired as a new manager for a failing
division in a company. The product line is outdated and losing
market share, interdepartmental communication is adversarial, and
competition for corporate funding is fierce. As a new manager, how
are you going to turn things around? Your first task as the new
manager is to write a 2–3 page plan for changing the organizational
structure of the failing division, incorporating the following
• Explain how you would address each of the 3 main problems in
the organization: outdated product lines, adversarial
communication, and competition for internal resources. Thinking
about organizational structures reviewed in the text, which one (or
ones) do you think would be most suited to this organization, and
• What steps would you suggest to manage the transition from the
old organizational structure to the new?


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