The Daily Stat from Harvard Business Review

July 10, 2015 Chart of the Week: What Really Happens After a Customer-Centric Reorg Around 30% of Fortune 500 firms, including Intel, IBM, and American Express, have restructured around customer groups, but an analysis of 37 companies shows that return on assets dropped 39%, on average, after customer-centric restructurings; it was only after 10 quarters that performance recovered, if it recovered at all. Still, the potential payoff is real, the researchers, led by Ju-Yeon Lee of Lehigh University, write on HBR.org: When companies showed improvement a few years down the road, their ROA was 11% higher than before the restructuring. To view, download, and share charts and graphics like this one, visit our Visual Library (sign-in required). SOURCE: Customer-Centric Org Charts Aren’t Right for Every Company

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