how do you handle reorganization

How do you handle reorganization?

1. Recognize The Fallout.
2. Rebuild Your Confidence.
3. Find Opportunities.
4. Do A Gap Assessment.
5. Manage Up And Down.
6. Don't Lose Your Contacts.

Full Answer

How to manage reorganization in the workplace?

Have a face of the reorganization, a leader who is driving your communication plan. Create an issue triage and resolution system. Hold regular office hours for questions, concerns and open feedback. Create a system to collect anonymous feedback. Find some champions of the reorganization across teams to keep the mood positive.

How can I help my organization through the reorg?

Listen to and absorb what senior leadership says about why the reorg is happening Seek opportunities to use your skills and expertise to help your organization through the transition Give in to the doom and gloom—remind yourself (and others) of the nobility and purpose of your work

Should you let people go when you reorganize?

If you start making exceptions for the squeakiest wheels you may reverse the whole reason you are making the change, as well as show people you are open to being politicked. Just like letting people go, a reorganization can be unpleasant. There will undoubtedly be people disappointed with their new role or diminished responsibilities.

What does a successful reorganization look like?

Let's define what a successful reorganization looks like. Turnover, Glassdoor reviews and employee engagement are some things you can track. Low turnover is the number one sign of success. Some negative Glassdoor reviews are hard to avoid, as people don’t like change, so be prepared to respond to those.

How do you handle reorganization at work?

Here are five tips for employers on how to deal with a company reorganization.Honesty and Transparency Go a Long Way. ... Communicate With Employees as They Navigate How to Deal with a Company Reorganization. ... Consider What Success Looks Like Under the New Structure. ... Help Employees Adapt and Calm Concerns About Jobs.More items...•

How do you manage reorganization?

How to Manage through A ReorganizationBe Honest and Realistic. ... Communicate Corporately and Individually. ... Use the Company Org Chart. ... Anticipate and Plan for Difficult Situations. ... Give Employees Time. ... Measure and Communicate Success.

What is the process of reorganization?

A reorganization is a significant and disruptive overhaul of a troubled business intended to restore it to profitability. It may include shutting down or selling divisions, replacing management, cutting budgets, and laying off workers.

How do you survive reorg?

18 Ways To Survive Your Company's Reorganization, Takeover, Downsizing, or Other Major Change.BE PREPARED FOR CHANGE. ... EXPRESS SADNESS, LOSS, ANXIETY ABOUT THE FUTURE. ... WATCH OUT FOR UNREALISTIC EXPECTATIONS. ... DON'T LET YOURSELF OR OTHERS BE ABUSED. ... ACKNOWLEDGE ANY INCREASED PRESSURES, DEMANDS, OR WORKLOADS.More items...

How do you communicate with reorganization?

4 Steps to Communicate Organizational ChangeShare a Vision. One of the best things you can do when communicating change is share a vision of how the organization can benefit from the transition. ... Tell a Story. ... Make Those in Your Organization the Heroes. ... Chart the Path.

How do you restructure a team?

You need to:Begin with the End in Mind. When it comes to redesigning your team, form follows function. ... Actively Involve Key Stakeholders. To achieve meaningful and lasting org. ... Take Workplace Culture into Account. ... Choose Capable Change Leaders. ... Encourage Cross-Functional Relationships and Collaboration. ... Recognize and Reward.

What is the outcome of reorganization?

A successful company restructure can result in increased profits, operational efficiency, and debt paydown. However, business reorganization efforts don't always work. Ineffective reorganization may lead to bankruptcy. And, businesses that go through bankruptcy reorganization might end up going through liquidation.

How does a corporate reorganization work?

Corporate reorganization usually involves significant changes to a company's equity base, such as: Conversion of outstanding shares to common stock. Reverse splits. The combination of the company's shares that are outstanding to reduce the number of available shares.

What to ask during a restructure?

3 questions to ask your boss when you survive the restructureWhat are the expectations of me now? ... What can you give me in return? ... How does this change my future?

How do you prepare for a restructure?

Restructuring takes a lot of thought....Plan AheadNew job descriptions, with clear tasks and expected results.Prepare any training courses or training sessions for employees who will be taking on new roles.Create a new organizational chart so that employees know who they'll be reporting to.

What happens during restructuring?

Restructuring is when a company makes significant changes to its financial or operational structure, typically while under financial duress. Companies may also restructure when preparing for a sale, buyout, merger, change in overall goals, or transfer of ownership.

Does restructuring mean fired?

Termination due to Workforce Restructuring means termination of an Employee's employment by the Company due to a Decline to Relocate, a Job Elimination, a Job Restructuring, or such other termination determined by the Administrative Committee.

What is organizational reorganization?

An organization restructure is a change in a company's business model, structure or processes. A restructuring can involve changes to the workforce, reorganization of company hierarchy or introducing new processes.

What is the difference between restructuring and reorganizing?

One useful clarification of the terms comes from Harvard Business Review, which describes two types of reorganization: Restructuring involves fundamental changes in a business's activities and resources. Reconfiguration revolves around changing business units, without changing the underlying business structure itself.

What questions to ask during a restructure?

3 questions to ask your boss when you survive the restructureWhat are the expectations of me now? ... What can you give me in return? ... How does this change my future?

Why is reorganization necessary?

Reorganization is necessary when a merger or acquisition takes place. When a business merges with another company, the joined forces may need to restructure to develop a new identity. And, the new combined business may need to let some employees go or make management changes.

What is reorganization in business?

A reorganization (or restructure) is any process where an organization makes significant changes to its financial or operational structure so that it’s better positioned to meet its goals. With time, a reorg is something that every company will undertake; it’s a natural and inevitable part of the lifecycle of a corporation.

Why are reorganizations so feared?

This is why reorgs are generally feared and despised by employees; they create uncertainty and anxiousness.

Why is it important to have a reorg?

As a reorg leader, it’s important to put your employees first when you’re planning a reorg and communicate well so that you can avoid employee resistance and other common problems.

What is an org chart?

Org charts are the perfect tool for planning a reorg, especially if you’re using a visual org chart builder like Organimi. Reorg leaders can use the org chart to rework the existing org structure, plan hypotheticals, and test the waters.

Can a reorg make everyone happy?

No matter how well a reorg is planned, you can’t make everyone happy. There will always be people who aren’t satisfied with their new or redefined roles, don’t like their new line managers, and don’t agree with other decisions that you’ve made. And you best believe that employees who are dissatisfied with any changes will make their voices heard not only internally but potentially externally, too.

How to start a company reorganization?

1. Start with your business strategy. The first component of company reorganization strategy is finding out why upper management wants to reorganize in the first place. Without understanding the new direction the company’s heading or defining the problem the company is hoping to solve, there is nothing to guide the reorganization process ...

What is the attitude of a leader in a company reorganization?

As a leader, your attitude about the company reorganization strategy sets the tone for how it will be received by your employees and co-workers. If you’re excited about the restructuring, that excitement will be reflected in all involved throughout the reorganization process. If you’re somber, expect those affected to be suspicious and maybe even hostile.

Why do companies restructure?

The primary reasons for restructuring can include: Something is broken. If your organization isn’t meeting its KPIs, if your processes or employees have become inefficient, or if there are essential tasks that aren’t covered by any position, it may be time to consider a company restructure .

What happens if your organization isn't meeting its KPIs?

If your organization isn’t meeting its KPIs, if your processes or employees have become inefficient, or if there are essential task s that aren’t covered by any position, it may be time to consider a company restructure. Your company has merged with or acquired another organization.

What is the purpose of creating an org chart?

If you haven’t already, create an org chart to get an elevated perspective on where your company structure stands now.

Start with a design, as if beginning from scratch

To grow intentionally, I teach entrepreneurs to use a strategic vision for how their organization should be operating in an ideal state as a tool for decision-making. Just like you have a product or technology roadmap, an organizational roadmap can be a great strategic tool.

Conduct a core-process analysis

Once you’re happy with your design, draft core processes for each of your top recommended functions. Describe how you perform that function in five to ten steps. Don’t overthink it; this should all be off the top of your head.

Build buy-in from across your leadership

The best way I have found to build buy-in is to include key stakeholders in the process. So far, you have created your design and core processes in a vacuum, and now it’s time to validate your work. Pressure testing among your stakeholders, likely your leadership team, is a great way to validate and build buy-in at the same time.

Test and iterate on your design through a proof of concept

Once you have finalized some recommendations as a result of your analysis, it’s time to test those recommendations using a proof of concept. By now, it should be rather obvious where the greatest problem areas are or opportunities for reorganization.

Execution

Once you have confirmed a reorganization is in the best interest of your organization, it’s time to create a super detailed execution plan. The elements you should include in this plan are training materials; a communication plan; roles, responsibilities and expectations; and a detailed list of which tasks are transitioning where, when and to whom.

Plan for change management

Change is hard, and you will find yourself having to repeat communications several times. Plan for this in your communication strategy. Set the expectation that things will get worse before they get better. Mistakes will happen, things will fall through the cracks — and that’s okay. It’s expected and a natural part of the process.

Written By

Katie Murphy is founder and CEO of Expansion Group, a boutique consulting firm that helps SMEs grow with intention. For 14 years, she's helped hundreds of companies across industries set up or level up their operations. She is an expert in organizational design, operations, strategy and innovation.

What happens when you add more functional areas?

As you add more functional areas, there will be finer division of executive roles. If you add a CMO or other C-level person, then some of the executive roles may consolidate under that individual. The CEO of an early company will need to be adept at reorgs.

When should you meet with your team about a change?

If there are key people deeply affected or likely to be unhappy with the change, you or one of your reports can meet with them either right before or right after the announcement.

Should reorgs be open?

Reorgs should never be open conversations with the whole company (or a functional area) about what form the new organization structure should take. This only opens you up to lobbying, internal politicking and land grabbing. It also prolongs the angst -- reorgs should happen swiftly and with as little churn as possible.

Is a reorganization bad?

Just like letting people go, a reorganization can be unpleasant. There will undoubtedly be people disappointed with their new role or diminished responsibilities. If done right however, your company will function more effectively and be aligned to win. Reorgs have to occur for the long-term success of the company.

Why do companies restructure?

There are many reasons department or company leaders decide to restructure. Some of the most common include: 1 A key person has left: It leaves a void and creates an opportunity to question the existing structure. In contrast to what management textbooks tell you, organizational charts are usually built around individuals, not “positions.” Oftentimes, when a key individual departs, the position should remain. 2 There are problems: These include inefficiency, talent mismatches, overlapping roles, workload imbalances, and other operational issues. Work is not getting done, or it’s not being done well. 3 It’s required to seize a new opportunity: An example would be a new market, product, or service, and your current structure just wasn’t designed to support your new business objectives.

What happens when a key person leaves?

A key person has left: It leaves a void and creates an opportunity to question the existing structure. In contrast to what management textbooks tell you, organizational charts are usually built around individuals, not “positions.”. Oftentimes, when a key individual departs, the position should remain.

What is not getting done or being done well?

Work is not getting done, or it’s not being done well. It’s required to seize a new opportunity: An example would be a new market, product, or service, and your current structure just wasn’t designed to support your new business objectives.

Is restructuring necessary?

If you do find that restructuring is necessary, however, it's important to handle the process carefully.