A successful reorganization effort can be just the right antidote for improving productivity or may be the best route for implementing a key business strategy. Often, it’s a necessary part of acquisitions and mergers. But while it’s one thing to initiate organizational change, it’s quite another to fully realize the potential transforming power of a successful reorganization.

Part of the difficulty is that reorganization has become a euphemism for downsizing. Too often, management doesn’t have a sound business rationale to embark on reorganization in the first place, or it may lack an effective design. In both cases, the only evident outcome becomes lost jobs. Therefore, employees have simply come to mistrust any attempt at reorganization.

On the other hand, when the business challenge is openly identified and clearly articulated, when the response is thoroughly designed, and when the goals are specifically established, reorganization can be a powerful means to sustained success.

A well-founded reason for change

What’s the big idea behind a reorganization or reengineering effort? There ought to be one in order to realize meaningful success. Experts believe that only a powerful business objective can drive true, beneficial, and effective change, and that the rationale must be well communicated throughout an organization, as well as to its customers. Having a strong business idea behind a reorganization is even more important to achieving results than designing the best of implementation plans.

Remember, a compelling business idea isn’t one that seeks to simply address performance problems by moving, realigning, or dismissing personnel. Changes on the level of staff reductions may indeed be necessary, but they should never be framed as important reorganization initiatives. They do not represent the kind of motivating business ideas that will unite employees and energize an organization.

Spreading the message

Once a reorganization rationale has been credibly identified, the content of that message must be well defined and widely communicated. Poor communication is often the downfall of many a good reorg plan. Having a clear change statement founded in reason and that genuinely resonates with real-market events is an important step toward establishing a persuasive communication effort—one that will help to promote positive change. 

As many leaders understand, change is seldom well-received. Employees are often reluctant to relinquish responsibilities, familiarity of processes, or control. In crafting the reorganization message, management should recognize potential resistance and be prepared to address issues of ownership and opposition.

And while no one likes change that’s “done” to them, people can embrace change that instead engages them. Gaining support for the right reorganization idea should begin multilaterally. Building an effective and purposeful message that compassionately reinforces the shared business objective will help to overcome employee resistance. Communicating that message in many diverse formats throughout an organization will also help unify companywide efforts.

Tailor-made plans

What works for one company may not work for yours. Organizations cannot simply copy a reorganization plan from the pages of successful business stories. Markets, cultures, conditions, and capabilities differ greatly, and it’s important to take all factors into account when developing a plan that will work for your organization. Any proposal that looks good on paper must still be tested and tailored to meet your company’s reorganization objectives.

The timing must also be evaluated based on your own organization’s conditions for success. In cases of mergers or acquisitions, your company is likely predisposed toward upcoming change, and employee mindsets are anticipating some degree of reorganization. At other points along your company’s path, timing a reorganization effort can be trickier, and several factors, from regulatory to cultural considerations, must be weighed before embarking on an all-out launch.