Strategies for Organizational Restructuring – Ask #HR Bartender
Estimated reading time: 3 minutes
Organizations are currently dealing with post-pandemic plans. They are also managing economic uncertainty and a challenging labor market. With all of this going on, it only makes sense to consider whether an organizational restructuring would make things better – help the organization run more effective and efficiently. That’s what today’s reader note is about.
Hello Sharlyn. First off, your daily emails are my favorite. Thank you for that. I’m new at a small but growing company. We are dysfunctional and know it. I’ve convinced the CEO that we need a restructure of departmental flow. The two top VPs agree. We are in discussions now.
I know that slow and deliberate is the way to go along with constant communication. What advice can you offer for a company that is restructuring its organization?
First, let me say thank you for the kind words about HR Bartender. I very much appreciate it.
I’d also like to add that it’s very mature of organizational leadership team to recognize their dysfunction and be willing to explore options to fix it. I don’t know specifics about the dysfunction symptoms but one of the things that often happens in growing companies is they aren’t prepared to restructure as the business grows. On one hand, it’s a good problem to have – because the business is growing. But it’s still a problem that needs to be dealt with.
This reader is absolutely right in taking the slow, deliberate, and communicative approach. Here are some additional things to consider:
Recognize that the people who got you here, might not be able to take you to the next level. I know organizations want to reward the people who contributed to their success. But one of the worst things you can do is promote someone because they were loyal and then have them fail. Find a way to match individuals to their strengths and the needs of the company as it grows – they and the company will be better for it.
Organizational charts can be helpful tools. I’m talking old school subjects like centralization, decentralization, span of control, etc. At some point, you’ll have to show people – both internally and externally – the company structure. It should make sense and look logical.
Use external voices to challenge thinking processes. Speaking of making sense, sometimes organizations get stuck. They need an outside voice to help them get unstuck. A contractor or consultant could provide some fresh perspective during restructuring conversations. An external voice could also help individuals realize when they’re ready – or not ready – to take on a bigger role in the new organization.
Everyone does not have to love or like every decision. They do need to be able to live with it. When it comes to decision making, the organization wants people to buy-into what they’re doing. But buy-in doesn’t mean they have to love it. Or even like it. They do need to commit to being able to live with it. If they don’t, find out why. The organization cannot have individuals undermining the process.
Communicate using multiple methods (i.e., in-person and online, in writing and verbally). People consume information differently so plan to communicate multiple times, in multiple ways, using multiple people. This is too important a conversation to assume that “one and done” is enough.
Regardless of the size or type of your restructuring, I think these considerations still apply. There’s no one right outcome in restructuring an organization, but these considerations can be like ground rules to the process. If everyone can accept them, it’s a start toward productive conversations about the company’s future.
Image courtesy of LEGO Mindstorms Robot Inventor
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