Background – the drivers for reorganization
The IP organization in focus was already a powerhouse, regarded by many as one of the best in the world. With highly skilled individuals and an industry-leading patent portfolio, this large team consistently drove results that significantly impacted the company's bottom line, setting a high standard for excellence in IP management. However, despite these accomplishments, it was becoming increasingly clear that the organization's success stemmed more from its exceptional people than from its structure, which in some cases even worked against them.
The Chief IP Officer and her leadership team began to notice signs of strain: inefficiencies and challenges had surfaced, and coworkers were increasingly feeling the pinch. The organization's structure –designed over a decade ago to serve different strategic objectives and address a different competitive landscape – was no longer optimal. Over the past years, the IP organization had grown significantly by reactively adding new parts in response to evolving business demands, and the headcount had grown by >50%. This evolution had introduced unwanted complexities. Team structures, capability constellations, decision-making processes and collaboration models no longer aligned with the IP organizations' missions. The organic evolution of the organization and its operating model could not keep up with the company's expanding strategic IP objectives or with the fast-changing external business landscape including more and new types of competitors.
To stay on top, the IP organization needed a proactive, strategic reorganization. This wasn't about cost-cutting or restructuring as a reaction to financial pressures; instead, it was a forward-looking investment in growth and innovation, designed to help the team build on its strengths and continue to lead the industry.
Keys to reorganization success
Careful design to address pains while safeguarding core strengths and culture
The reorganization was carefully crafted to retain the unique elements that made the IP organization successful. Through iterative interviews with the leadership team and key stakeholders, we identified existing pain points, core strengths, and future opportunities. This informed the step-by-step design of a new organization, ensuring that the IP operating model aligned with the company's expanded strategic objectives. Together with select representatives of all teams in the organization, we co-created an operating model that addressed perceived pains, inefficiencies and built-in complexities, while protecting essential elements and "secret sauce" of the old organizational structure, including the collaborative culture. The design also included a structured and inclusive plan for how to implement the change.
Proactive change management for a smooth transition
A dedicated Change PMO was established to guide the transformation while ensuring continued performance throughout. Both internal and external resources were allocated to drive the change process, allowing staff to stay focused on business operations and maintain productivity during the transition. Change workstreams were designed to anticipate and mitigate potential issues, while communication plans facilitated strong buy-in at all levels. This included comprehensive launch guides, targeted communications in smaller groups and 1:1 to clarify the rationale and benefits of the reorganization, and fact-based narratives for union negotiations. The structured and inclusive approach ensured openness and streamlined interactions and reduced delays and miscommunications across the organization – so that co-workers spend as little time as possible in a state of worry, fear and resistance.
Outcome – how the new organization was better than before
Greater business impact with organizational simplicity and autonomy
The new organizational model eliminated organically built-in complexities, inefficiencies, and people's frustrations, empowering teams to operate with greater independence. The simplicity of the operating model and autonomy of teams had multiple positive effects. KPIs revealed that key processes now operated at three times their previous speed, and teams could prioritize and focus on key matters with fewer distractions. This shift enabled and encouraged teams to take on larger, more impactful projects than before, addressing a wider range of business issues and embracing greater accountability for outcomes. As a result, they delivered more substantial value to the business at a faster pace.
Right-level and efficient decision-making
The new structure introduced a more effective decision-making model, where not all key decisions needed to be routed through the leadership team. Responsibilities were thoughtfully delegated, allowing for swift alignment and empowering individuals to take ownership of their work. This structure not only facilitated prioritization and reduced the risk of sub-optimization but also encouraged collaboration, building on the organization's strengths and culture.
Future-proofed for growth and adaptability
The reorganization has fully equipped the IP function to embrace its expanded missions within the company, ready to support all strategic objectives, from revenue generation to risk management. The organization is now better prepared to adapt to the evolving external business landscape and respond to new competitive threats. Additionally, the organization is designed to scale efficiently, with the flexibility to incorporate new capabilities and talent as future needs arise.
Successful, seamless transition
Thanks to comprehensive change workstreams and effective communication, the reorganization enjoyed widespread acceptance across the IP organization. The smooth transition even surprised IP leadership and HR, as IP professionals are often cautious about change. With everyone on board, the new structure has laid a solid foundation for continued excellence and innovation.
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