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In the world of enterprise, restructuring is the new norm. Organizations today are experiencing so many ebbs and flows, from accelerated growth and acquisitions to selling off parts of the company to create new, smaller companies.
A "restructure" can impact all levels of the business, for better or worse. Whether it's creating larger or smaller teams, moving to a new location or expanding locations, shifting or restructuring departments, and making changes to the leadership structure, how it's executed makes all the difference.
Here are some other issues organizations often run into during a restructure if they are not proactive:
I was speaking with one of our clients recently whose company was taking a few separate teams and putting them together to form one larger, robust team. Their reason for doing this was powerful—they were beginning to understand the necessity of diverse perspectives, and uniting these smaller teams presented an opportunity for more direct collaboration. In fact, many companies are seeing the power of diverse perspectives and want to alleviate silos where and when they can.
However, even with such a positive intention, this transition was creating issues around authority and delegation, leading people to wonder, who owns what? Promotions were happening in the midst of all of this that led to more confusion and power games…certainly not a dynamic you want to see on a new team. These are often the results when there is a sudden change in who you work with and who you report to.
Changes that come from restructuring can create new opportunities for businesses including an increase in shareholder value, more cross-collaboration, more innovation, and expansion. However, it can be counterproductive and create quite literally the opposite result of the intention when there is no plan in place to make sure these shifts are managed skillfully. And unfortunately, effective communication and planning too often fall to the wayside.
Creating Smoother Transitions
The McKinsey Global Survey also revealed that 66% of "successful" company reorganizations had developed a clear communication plan for all internal and external stakeholders. Clear communication was also the top determiner of their success.
During times of restructuring, it's vital for the entire organization to be informed about what's taking place and for leaders to be prepared to have the conversations needed to navigate these transitions. Here's where to start:
A successful restructure comes down to the quality of conversations that are taking place before, during, and after the transition. To bring everyone together, teams also need to feel supported and know their leaders have their best interest at heart.
Download our recent eBook here for more on the conversations you need to be having today.