The hidden politics of restructures: reading between the lines
More than an org chart
Restructures are rarely just about efficiency. They’re about power. Who gains it, who loses it, and how the new world order will work
On the surface, you’ll see new reporting lines, updated job titles, and fresh strategy slides. Beneath that, there’s a quieter, more consequential shift. The redistribution of influence
If you only read the formal announcements, you’ll miss the real story. The product and transformation leaders who thrive during restructures are the ones who know how to read between the lines and act before the dust settles
Why restructures are so politically charged
Restructures trigger uncertainty, and uncertainty activates politics. This is especially the case when there are multiple restructures that happen in quick succession or it feels like there has just been one restructure after another over an extended period of time (e.g. 12-24 months). It is inherently in our DNA to move into self preservation mode when uncertainty hits, when:
roles and reporting lines change, altering who has access to whom
budgets are redistributed, shifting resources towards some priorities and away from others
informal alliances are disrupted, and long standing working relationships are broken up
These shifts create winners and losers, and the winners aren’t always chosen for merit. They are often chosen for alignment, loyalty, or other strategic reason
The hidden layer of what is unsaid and unseen
Officially, restructures are about strategy. Unofficially, they’re often about:
rewarding allies: those who’ve supported leadership agendas
removing blockers: those who’ve resisted change or challenged authority (regardless of whether there was reason to or not)
shifting influence: to align with new priorities, personalities, or power alliances
These moves are rarely stated outright, but they’re visible to those who know what to look for. Having insight into the hidden layer gives savvy product and transformation leaders a competitive advantage to get things moving, hit some big goals, and get noticed whilst everyone else is still waiting for the dust to settle
Signals to watch out for
Signals are actions that provide useful information. They could be in the form of:
scope changes. Who’s gaining or losing teams, budgets, or decision rights?
merged functions. Who leader is chosen to head up the merged function? Who were the other obvious candidates in the mix and where are they in the new structure?
sideways moves. This is often a polite way to reduce someone’s influence without formally demoting them
new dotted lines. Who’s being looped into the decision making process informally?
These signals tell you who’s rising, who’s being sidelined, and where the new power alliances are being formed
Example 1: The quiet demotion
A Chief Product Owner noticed that a “neutral” restructure of a department that he often collaborated with had moved a long time blocker into a role with less budget and fewer direct reports. On paper, it was a lateral move. In practice, it was a quiet demotion. This opened up the space for an initiative he’d been trying to get across the line for 6 months already to quickly gain traction
He hadn’t pushed for the change, but by watching the informal shifts, he knew when to act so that his initiative gained speed and wouldn’t get stuck in the slow lane
Example 2: The surprise ally
A General Manager in Strategy and Transformation noticed a distant peer had been placed into a new role following a restructure, and they now shared overlapping responsibilities. The general manager reached out early - as soon as the announcement came out - to congratulate their peer on the appointment, build rapport, and subsequently turned this peer into a co-sponsor for a stalled project they had been trying to get across the line since last financial year
The restructure didn’t just create new roles and change reporting lines, it created new productive alliances
Example 3: The missed moment
A Head of Transformation waited for clarity before engaging with the people appointed to the new senior leadership team. By the time she reached out, informal coalitions had already been formed. She was seen as disengaged because she waited, and their level of confidence in her ability to achieve outcomes was lost
Her initiatives were deprioritised, not because they lacked merit, but because she missed the political window to act
What you need to do during a restructure
The plays you make early on during a restructure will set you up for success during this change of guard:
gather intelligence. Find out what people are saying around the water cooler (literally and figuratively), not just in the official announcements
identify the emerging power alliances. Who’s being consulted more often than they used to be? Who’s gaining visibility?offer solutions. Position yourself as part of the future, not the past
remap your political landscape. Alliances may shift overnight. Update your map immediately and see how the terrain has changed and what moves you need to make as a result of it
reposition your work. Align your initiatives with the new priorities and adapt to the new language being used
secure quick wins. Demonstrate your value in the new structure fast
build new alliances. Reach out to peers whose scope now complements or overlaps with yours
support others in transition. Helping your peers to navigate the changes during this time of uncertainty builds goodwill and influence
Once you’ve mastered your early plays, you can try to:
turn the ascending powers into allies. Build early rapport, proof of value, and goodwill with those gaining influence
buffer the displaced. Supporting those who have lost ground can create loyal allies for later - they still carry informal influence in some situations
shape the narrative. Frame your work as essential to the success of the restructure
preempt resistance. Anticipate who might feel threatened and engage with them early
Common mistakes leaders make
Product and transformation leaders commonly make the mistake of focusing on the wrong things during restructures. These include:
waiting for clarity before acting. Stay visible. Don’t retreat into “wait and see” mode. By the time you feel ready to act, the informal deals have already been done and you may be seen as disengaged
assuming titles tell the whole story. Influence often sits somewhere else, somewhere that’s not depicted on the formal org chart
ignoring the emotional impact. Restructures trigger fear, defensiveness, and identity shifts. These are hard to deal with at the best of times, but when successive restructures are enacted, these emotions are increasingly heightened and unexpected or unhelpful behaviours start to emerge
over focusing on your own role. The real opportunity here is in understanding how others’ roles change and leveraging those shifts to become your advantage
Your homework for this week
What’s one opportunity the current or upcoming restructure could create for your priorities? Who do you need onside to seize it?
Things you could do to help you with this:
choose one recent or upcoming restructure
map the formal changes. The roles, the reporting lines, and the budgets
map the informal shifts. The influence, the visibility, and the alliances
identify one move you can make this week to strengthen your position in the new political landscape
Why this matters
Restructures are inflection points. They create uncertainty, and uncertainty creates opportunities
Product and transformation leaders who understand the hidden politics of restructures don’t just survive change, they shape it. They know how to read the signals, build the right alliances, and position themselves to be a part of the future
If you wait for clarity, you’ll always miss the moment and miss the opportunity. If you act with insight, you’ll help define what is to come
Want help to read between the lines and see the hidden politics of your restructure so that you can act swiftly with clarity and conviction and shape your future?
Let’s work on this together? Here are three ways:
Influencing for 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