There are many negative consequences when management fails to properly manage the business risks associated with a reorganization including but not limited to reduced or vanished shareholder value, lost productivity, lost employee and customer loyalty, ruined business image, lawsuits, non-compliance with regulations or even business death.
A chaotic reorganization of massive magnetite presents many negative consequences and risks:
*** Theft of physical and information assets by disgruntled employees,
*** Higher turnover rate than expected potentially leading to the loss of the most talented employees as they can easily find other jobs or start their own businesses,
*** Morale and productivity may decrease over time due to extended planning and execution of the plan unnecessarily leaving employees in the dark for too long allowing false rumors to spread which in turn create more problems for management to solve internally as well as externally such as flooded internet message boards feeding customers and investors false or confidential information,
*** Computer network costs may increase due to increased time spent by employees on the Internet to surf and look for jobs,
*** Less employee cooperation may lead to a series of business issues such as bad customer service, and lower productivity for others within the company and external partners,
*** For self preservation reasons, groups and individuals may take on projects that rest within the jurisdiction of another group which they might consider a surviving or even a thriving group within the end-state,
*** Prolonged layoff process may lead to plan manipulation, backroom deals, and favoritism,
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