Every time you perform a restructure you lose talent, erode engagement, and stall productivity

Restructures (and redundancies) are all the rage at the moment

One executive I know has been subject to at least three restructures this year

Not because they saw value in it

Not because their team thought it was the right thing to do

But because the organisation forced it onto them

Executive Leadership Team changes meant the deck chairs were shuffled, and the newly appointed hired in the people they know and trust

Entering a cost out phase, ramping up the use of AI, and executing on offshoring strategies meant saying goodbye to colleagues who got things done (not because of their powerful positions but because they knew where the bodies were buried)

A multi-year, multi-million-dollar investment program was constantly being disrupted by competing priorities in the organisation yet their senior executives decided to clear out the existing team and replace them with a “more capable” team

What happened?

The organisation lost their best talent because they were fed up. They didn’t apply for any of the roles in the new structures because they felt their hard work and loyalty meant nothing

Those who stayed became disengaged, mourning the loss of their colleagues, getting frustrated because it took so much longer to get things done, and believing in their work and leadership was a thing of the past

The power dynamics shifted as people left, new joiners came, and teams were recalibrated to fit the new structure

People were too busy trying to figure out who was doing what, where decision rights sat, who had what relationships and influence with who, and a whole heap of other things

They did everything except productive work

It takes a good 6-12 months for people to settle into new structures, figure out who’s who, and figure out what they’re doing

When you have a seat at the table in these often closed door conversations, speak up! Chances are, your organisation hasn’t accounted for these hidden costs (nor put strategies in place to mitigate these foreseeable issues)

Want to go deeper on how to work through the people and politics of your next restructure?

Let’s work on this together. Here are three ways:

• Influencing or Impact: This practical 2-day workshop is for you if you want to influence a decision maker, influence a change in customer or colleague behaviour, or influence someone to buy something from you

• Executive and Leadership Team Coaching: Work directly with Lai-Ling to problem solve for your specific situation in a confidential setting. This is for you if you want to develop and execute on a game plan that is 100% tailored to you

• Leadership Development: Invest in the product and transformation leaders in your company with leadership development that is customised for their role. This is for you if you want your people to learn about people and politics