Pitfalls of restructuring and challenges in strategy implementation

First and foremost, thing while considering or undertaking restructuring is the fact of how the
intended restructuring process will mesh with the existing competencies of the organization. With the
Organization 2005 focussing on changing the pre-existing globalized matrix, it was centered on
tackling the issue of coordination, innovation and also the problem of straight-line reporting affecting
the control.

Through Organization 2005, it was intended to improve all inefficient processes and leverage their
R&D to roll out different products at a rapid pace. As P&G had a sound R&D process in place, they
took advantage of that but to improve the other aspects of the organization, to implement IT-enabled
services could have been a better outcome if it would have been properly implemented. Moreover, it
is necessary to take into consideration that the strategic changes have been properly and effectively
communicated to the top management and further down to mid-level managers.

According to me, it failed in Human resources. To innovate and transform into a new organization, the
employees must buy in the ideology of change. But with job reductions intended to initiate innovation,
it backfired and affected the employees’ morale. To overcome this, P&G should focus on leveraging
its competencies and also enhancing its implementation strategy by standardizing it across different
geographies and categories.