In this era of uncertainty, one this is certain: things change. People fear change. Why? Because the experience is unknown and the results of the experience are unknown. Basically, people are afraid of the unknown. But that is exactly the reason why change is so exciting – like a good drama that spins its yarn well – change can take you in any direction at any time and spawn some of the most creative and interesting events and challenges.
Last week, Eli Lilly & Company announced a company-wide reorganization to better position the company going forward as a lean, mean, pharmaceutical machine. From where I sit as an owner of an executive search firm in the Life Sciences field, my first inclination upon hearing the news was, “OH NO! What are we going to tell candidates interested in Lilly or interested in moving into industry?” An act of reorganization (and the possibility of job cuts) can be, and is, a destabilizing force. But, let’s take a step back and analyze what this means and why this reorganization is actually a good thing:
• Due to the global economic climate, Lilly took a hard look at itself to see how it can be a better company. That’s a good thing. Any time a company or a person can improve themselves is always good. This move also “forces” Lilly’s competitors to take a hard look at themselves to ensure that they can also sustain production and innovation through this tough period. Industry efficiency improves overall. Thumbs up.
• A side effect of improving efficiency is to refocus company energies on what is working and throw out what is not; including personnel. Make sure that the right people are in the right positions. Shaping the company to be the absolute best at what it already does well. This differentiates a company like Lilly from its peers – adding to brand value.
• Over the Lilly reorg pushes transparency in the industry, which is extremely important in today’s world.
Reorgs are not necessarily put together to stem bleeding, sometimes they can help a company achieve even greater successes than they currently enjoy. Plus, a reorg (I think of it as more a re-evaluation) makes a large company and even an industry more accessible to the average person. Everyone must deal with change, everyone must deal with the realities of our current world. When a major corporation must deal with the same issues (albeit on a greater scale) as a typical small business or even home owner (e.g. cash-flow, expenses, future income) it shows how egalitarian the world actually is – that’s good for all.
Disagree? Let me know: jeff@theagencyworldwide.com
