How often should firms undergo reorganization? Should a unit e have reorganized whenever its leadership changes? Should there be reorganizations every few years? Or should major restructurings be less frequent? Some management experts have suggested that frequent reorganizations are akin to the overuse of antibiotics by doctors.
In the short run, such use may help the patient although the long effects of such treatment ca be self-defeating or even harmful. When do the costs of reorganization become excessive?