I recommend you are always on Kaizen mode; it is a great way to do business and life in general. But, how do you decide is the right time to do a full-on reorganization? The conditions I think could trigger a full reorganization are:
- Financial results are not there for 3 quarters or more. You are underperforming and it is not the result of a disaster, and the recovery trend is not there.
- You tried incremental enhancements and they are not having enough impact.
- Your key decision processes are convoluted or ineffective.
- Key players leave or arrive into your organization (for example, after a merger or acquisition).
- Your market conditions have changed dramatically (new and strong competitors; new business models)