Background
Firstly, the administrative organization had recently undergone a tough retrenchment programme involving redundancies, and secondly, there were several internal conflicts between departments and managers. After having executed the necessary cuts in personnel and with the financial situation now in balance, the management felt a need to overhaul the organization, with the focus on the issue: do we have the type of organization and the management model most suitably adapted to the purpose?
The administrative manager invited a number of consulting firms to discuss an organizational overhaul and after the customary assessments, PREERA was selected.

Assignment
The assignment involved reviewing and preparing a proposal for a new management model, to include both a formal organizational structure with a pertinent management system, and clearly defined concepts of leadership and the culture within the organization.

Implementation
• Interviews were conducted with all mid-managers as well as representatives of the other groups.
• Based on our firm conviction that an organization is a vibrant system, the decision was made to run the process with full participation. The mid-managers were all divided into dialogue teams in which different issues were addressed. While the project was being conducted, other employees were also invited to participate and give their opinions on the progress to-date.
• Working teams were formed with responsibility for different parts of the management model. The teams were supported by PREERA and the result of the project was the production of a number of proposals that were presented to the group as a whole.
• The results were compiled into one single document and presented to the board.

Effects
As the new management model was developed and produced with a high degree of participation, the conditions were ideal for the organization to be able to focus its energy on the targets set by the board instead of bemoaning the changes, which is a characteristic approach adopted during many reorganization projects.

The new organizational structure provided the opportunity for the successful implementation of shared leadership without an increase in management resources, which was an unequivocal demand from the board. This shared leadership was a solution for the unit managers, who had considered themselves to be in a vulnerable position by having too large areas of control, for example.

The administrative organization’s common perception was that the way in which the process had been run – with a high degree of participation and the ensuing high level of responsibility – was a key factor in ensuring the successful outcome.