Beyond the Bottom Line
The Key to a Successful, People-Centred Restructure
It has been a tough year for lots of organisations and the current economic and political environment means that organisations big and small across Aotearoa are having to make tough calls and implement changes to ensure their on-going sustainability.
So, what do you do when it’s the head and not the heart that has to lead the way? In all the years I’ve been supporting organisational restructures, there are two things that I’ve learned:
- The only constant is change. Change can mean minor adjustments to day-to-day operations or significant transformations over time. Our current environment means that more organisations are looking to reduce costs and operate more sustainably. Change can be for a range of other reasons - your organisation may need to adapt to a shift in strategy, introduce new technology, or find more efficient ways of working.
- The way change happens matters. Working through workplace changes can be complicated and we all want to 'get it right’. It’s easy to direct all your focus on the logistical and legal aspects and overlook the human element. There’s no one size fits all, every change is different. What works in one type of organisation might not work in another, but putting people in the heart of the process leads to a better outcome every time.
Putting people at the centre of a restructure plan is not only the right thing to do, it also sets the organisation up for ongoing sustainability and performance with engaged employees.
Click here to get the People-Centred Restructure Checklist
How to plan a people-centred restructure
Know your “why”
Knowing your ‘why’ is essential because:
- structuring your business and roles properly is essential for organisational performance
- it's the human thing to do (it helps employees see they aren't the problem and enhances trust in leadership)
- it is a legal obligation.
Some organisations start planning their restructure by identifying roles they think they could do without (often based on people’s performance which if challenged, would be unjustified). The better approach is carefully thinking about your organisation’s long-term and short-term objectives, and considering what changes may be needed to enable the organisation to meet those objectives.
Having clarity around the design of your roles and structure supports organisational performance in the short and long-term. In the short-term, this results in clarity and focus across roles; in the long-term, a well considered rationale builds trust and confidence in leadership.
While people can’t help but take it personally if their role is impacted, having really clear and understandable business reasons for a proposal to disestablish roles and/or other changes, helps your employees see that they are not the problem.
Get people’s input to explore what’s possible (rather than just their feedback)
Think about whether you can seek employees’ input on what could be changed to achieve your strategic goals instead of only seeking their feedback on specific proposals. Engaging employees early can result in better solutions that leaders may not have considered. However, leaders must be clear with employees about any constraints to reduce the risks of unrealistic expectations and misalignment with the organisation’s objectives.
Help leaders prepare to lead the change
Leaders are critical to your employees’ experience during a restructure. The leaders in your organisation need to be well-prepared and empathetic. To enable them to confidently lead their teams during the change, they need to fully understand the process and the role that they play. This means you may need to stagger your plan so that you give leaders time to digest the proposal and ask questions before you share with the whole organisation.
Communicate with employees in a clear and empathetic way
In any change process, there will be a mixture of written and verbal communication with your employees. Think carefully about what information needs to be provided and the best way to provide it, taking into account individual needs, including cultural needs, language and disability requirements, and how people like to be communicated with.
Setting up individual and group meetings in private and safe settings to allow people to ask honest questions and show their emotions is crucial. Providing access to professional support for your people is just as important (e.g., an employee assistance programme). The most important people in the restructure are the people being directly impacted, so put their needs at the centre. However, balance is required as it's also essential to provide others on the team clarity and confidence about focuses for the next phase.
Think long-term and plan what comes next
Leading a restructure is a complicated process with lots of moving parts, and it’s easy to lose sight of what comes next. People are likely to feel unsettled by the changes and may have to say goodbye to colleagues, move to a new role or take on extra duties, so the plan needs to include steps that support them after the restructure has been implemented. This could mean providing training to people who are taking on new roles, or creating time for new teams to form and figure out how they will work together moving forward. Including these kinds of activities in your restructure plan ensures the business outcomes that you set out to achieve are realised and your people feel valued.
Restructures are hard. Even with planning, there is no avoiding the emotions involved. A people-centred restructure creates time and space for people, means everyone is clear and focused on the next phase; trust is maintained; and people can move forward with their mana intact. Results lift, people stay, and culture remains strong.
Click here to get the People-Centred Restructure Checklist
