It’s a familiar scenario: A company brings in a new department head who immediately decides that the way to show leadership is to reorganize. Then a new division head comes on board or a new CEO and there are more reorganizations sometimes several in one month. Yet according to Wharton management professor Peter Cappelli frequent reorganizations “are like doctors treating patients with antibiotics.” The medication might work short-term but “long-term it can be harmful.” Knowledge at Wharton looks at why some reorganizations succeed and others fail.

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