Reorganising respectfully, so you can move forward again

Philips, Meta, Twitter and Microsoft. Just a few of the many companies that have recently announced large reorganisations. The way Elon Musk handled it at Twitter (X) is often deemed unacceptable in the Netherlands. But is there even a ‘right’ way to carry out a reorganisation? Have a look at our key insights for reorganising with respect.

Usually, large-scale changes in organisations profoundly impact employees. They have destroyed many a generation’s trust in their organisations providing a ‘job for life’. Not all reorganisations come with massive layoffs; some may only involve redesigning the organisational structure or adapting the set-up of functions or jobs. Or integrating two organisations after a merger. Whether large or small, reorganising is a top-down change directly affecting employees’ personal working lives and greatly disrupting the daily operational run in organisations. 

Is a reorganisation always bad news? 

The answer depends on the perspective. Taking a step back, a reorganisation is a leap forward for most organisations. Employees tend to recognise this only in hindsight, once the new structure is in place. But in the moment, they primarily experience uncertainty, even when no jobs are lost. Reorganisations may also be necessary in times of growth. A quickly growing logistics company, for example, had to adjust its structure, with implications for functions, job titles and locations. These kinds of consequences also affect people and are often felt painfully by them, as they stand to lose familiar elements of their work. This does not mean that every reorganisation is inherently bad news. It does, however, highlight the need for careful and considerate reorganisation.

Carefulness as the key to success

A careful reorganisation means that every step of the process is well thought out from the viewpoint of the people affected: reorganising with respect. It is crucial to analyse in detail what the changes mean for teams and individuals, how they are likely to respond, and what their needs might be. This requires thorough preparation. But carefulness is, for example, also reflected in a fair and transparent selection and appointment process. When employees see that the process has been well thought out, trust increases. And that trust is essential for the organisation to move forward again after the reorganisation.

The biggest challenge: balancing between carefulness and speed

The biggest challenge in reorganising with respect is finding the balance between a careful process and speed. The more time between announcement and implementation, the more uncertainty is triggered. On the other hand, if preparation is too rushed, a clear and complete plan may be lacking. Both scenarios create difficulties for those involved and disrupt daily work. That is why thorough preparation is crucial to avoid unexpected issues in the implementation. It is not uncommon for certain departments or groups to be overlooked. Hence, conducting a proper impact analysis is key, ideally with input from those who understand the realities on the work floor. This clarifies what the reorganisation process will look like for different groups and which concerns and frustrations need to be taken into account.

Dealing with confidentiality

In some cases, the preparation of a reorganisation is done by a very small group of insiders. Listed companies, for instance, will suffer dire consequences if share price-sensitive information is leaked. This also means that communication cannot always be prepared in detail in advance. As a result, employees often receive only a general announcement, while they are eager to know more about their own specific situation. This can be frustrating but is sometimes unavoidable, as plans may still need to be finalised with trade unions, works councils, or the UWV. This often leads to a phased approach, where employees receive more details at a later stage. Such a multi-step process usually takes months, and employees unavoidably have to cope with uncertainty for a longer period of time.

The role of communication and leadership

To navigate this period of uncertainty effectively,  good communication is vital, as is the role of leadership. Managers must be able to guide their teams and provide a clear narrative that people can hold on to: why is the change necessary? What is the long-term vision? What does it mean for me as an employee? Ideally, managers have been prepared prior to the general announcement, so they are equipped to talk to their teams straight away. In equipping leaders, it is also important that leaders know how to handle emotions and uncertainty, even when they themselves are affected by the changes.

In some cases, it may not be realistic to expect certain managers to take on this role. That is for example the case if they are significantly impacted by the reorganisation themselves. In such instances, another manager can temporarily take over these responsibilities. Additionally, it can be beneficial to bring managers together regularly to share experiences and receive support. This ensures that they feel supported and enables the organisation to respond quickly to the concerns and needs of the teams.

Want to know more?

Want to learn more about reorganising with respect, or discuss your thoughts with us? Feel free to send a mail to  Michiel van Delden or Petra van den Bosch. 

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