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When does a reorganization have to create chaos?
A corporate reorganization doesn’t have to create chaos. But many do when there is no clear plan for communicating with employees and other stakeholders early, often, and over an extended period. Most executives and their employees dread corporate reorganizations, as we can personally attest.
Who are the stakeholders in a company reorg?
In our view, it makes sense to think simultaneously about engagement with employees and other stakeholders—unions, customers, suppliers, regulators, and the board—but employees invariably require the most attention. Leaders of reorgs typically fall into one of two traps when communicating with their employees.
How to deal with anxiety during a reorganization?
Leaders can minimize that anxiety by stating in plain language what they know now, what will come later, and when it will come. They can also reassure people by reminding them of what will not change—for example, the company’s core values, the organization’s focus on customer centricity, or simply the existence of this or that department.
Who to contact with questions about a reorganization?
Anyone with a question about the reorganization, at any stage—but especially when the new organization is being rolled out—should be clear whom to contact on the reorg team or in the individual’s own part of the business.
Last Update: Oct 2021
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