Topic > Redesign Process - 1393

The race to secure global market dominance is hitting major agricultural, construction and turf care companies like Deere & Company hard. In an effort to leverage resources and institute cost-cutting measures, John Deere released approximately 800 salaried employees and overhauled its organizational structure. There are various interventions that can be applied to structural design. This document will review the related application phases of reengineering and downsizing, as well as execution concepts.Reengineering – Downsizing1. Clarifying the organization's strategy According to Zedong (2011), downsizing is “typically an ill-conceived attempt by those in power to pander to shareholders or the public to reduce costs. It is an admission of failure” (p. 1). In 2009 Sam Allen, CEO of Deere & Company, together with senior executives, introduced a strategic plan to reduce costs and expand business interests globally. First, in order to reduce costs, John Deere offered a voluntary separation program for all salaried employees. As a result, around 800 employees left the company. Thus, the program saved John Deere $75 million in costs. Additionally, to compete globally, John Deere introduced a global operating model (GOM) that combined two previously distinct divisions, agricultural equipment and commercial and consumer equipment into one division. : World Agriculture and Turf (Golden, 2009). According to Golden (2009), Deere's strategic director of public relations, “the voluntary separation program was designed to help Deere immediately capitalize on the efficiencies of the merged divisions. The company expects the new operating model to improve the company's competitive position... halfway through... exceeded projected projections for 2011 and posted one of its highest third-quarter results in years. Conclusion An organization's goal is to gain a competitive advantage and increase profits by providing a quality product or service to its target customer base. Therefore, companies must be able to differentiate themselves from the competition by taking calculated risks. John Deere, one of America's oldest companies, has implemented a risky and unconventional change strategy. It can be argued that the term voluntary separation is a euphemism for the dismissal of employees; John Deere's approach was well constructed. While redesign and downsizing produce negative connotations; these interventions are how companies stay in business. Therefore, to be successful, correct implementation and a humane approach are essential.