Tips and Answers to Your Questions
Implementing a Partnership

Measuring the Success of a Strategic Restructuring Effort

You have successfully navigated the waters of negotiating a strategic restructuring effort and the boards of directors have decided to merge (or take on some other form of strategic restructuring). The question is how will you know today - and in a year from now, or two - that you accomplished what you set out to accomplish? The best answer is to include such discussions in the negotiation process, and set measurable goals that can be revisited on a regular basis after the strategic restructuring takes effect.

When two (or more) organizations decide to take on a strategic restructuring, they are usually in search of change, whether it be because they are facing leadership, financial or some other type of crisis or challenge, or because they see an opportunity to improve their services or advance their mission. As discussed in the July 1999 tip, it is extremely important that both organizations clearly articulate their motivations for pursuing strategic restructuring before they begin the negotiation process. Equally important is for each organization to identify their desired outcomes for the restructuring. Early in the negotiation process, each organization should make a list of their desired outcomes, and the negotiations committee should discuss and agree on a joint list. Once this list is agreed upon, the group should take some time to discuss ways of measuring whether or not these desired outcomes are reached.

It is easiest to measure outcomes when goals are expressed quantitatively (for example, number of clients served) rather than qualitatively (the staff is happier). Thus, whenever possible each desired outcome should include a quantitative goal. For those desired outcomes where qualitative information is the only option, specify the question that will be asked both now and in the future to measure success. By asking the same question at both points in time, comparisons can be made between the responses.

In order to effectively evaluate the restructuring effort, be ready to examine the desired outcomes over time. Set a timeline for when the desired outcomes will be reviewed and measured. Each desired outcome may have a different timeline. For example, a reduction in operating costs due to the elimination of unused space may be easily measured six months after the merger, whereas a change in the number of clients successfully placed in jobs may take longer to establish if the job-training program takes a year. Some outcomes may only need to be measured once - hiring a new executive director, for example. Others may need to be measured over time, i.e. increasing the number of clients served. For measuring things like an increase in clients served, state the exact percentage increase sought from year to year. The board can always review these goals and change them as the situation demands.

To ensure that the desired outcomes are reviewed, make them a part of at least one board meeting per year. Then both staff and board members are clear on the expectations for the new organization. By regularly reviewing the list of desired outcomes, the board can ensure that the new organization is on track. If goals are not being met, the board and executive director can evaluate the causes and make adjustments either to the desired outcome or within the organization.