A colleague recently asked me about an email he received announcing management reorganization at his company. As a mid-level manager, he had some concerns that the new alignment might move the company’s focus away from his department. He wanted my input as an objective outsider on “what it meant” that several top executives had shifted roles and that some were now responsible for different divisions of the company than before.
I think my answer confused the issue even more. I told him the shift could mean a great deal to his department and his personal future with the company, but then again, it could mean nothing.
It’s not unusual for a company to make changes that impact internal reporting relationships or lines of communication among departments. Some companies do so, and the change is so subtle that they don’t make an announcement about it. The thinking is that if it doesn’t impact the rank and file employee, there’s no need to confuse everybody by announcing a change.
Other companies think it is best to keep the lines of communication open and let the entire workforce know what is happening among the senior management team. The problem is, the average worker is like my colleague: If he is unclear about the change, or not directly affected by it, he may be left with more questions than answers.
Steps to follow
When a company reorganizes, management should ask a few questions before communicating the news to the entire to the entire population.
Who is affected? In some cases, the only people affected are the top executives themselves. Sometimes just the formal reorganization is just a public acknowledgment of changes that have taken place gradually within the company, such as one executive taking a larger, more direct role in a certain area of the business.
But in other cases, the reorganization can have a broad, sweeping impact throughout the organization. It could mean that the company is moving in a new direction or that it is consolidating operations to cut cost. In these cases, it’s important that employees know about the shift and how their jobs could be altered as a result.
Why was the change made? Typically, there is some impetus for reorganization. A merger or acquisition could be the cause, or the company may shift its focus to keep up with a changing marketplace. Or perhaps a key manager left the organization, or moved to another company facility, causing this particular office to reassign duties among the remaining executive team members.
Employees who are not given a full explanation may fill-in the blanks themselves. Rumors could run rampant. If people are leaving the company or executives are changing roles, employees might conclude that someone was forced out or that a manager was demoted to other responsibilities due to poor performance.
What changes will employees have to make? There are many scenarios in which employees will have to their job differently after the reorganization. Maybe the company name or primary line of business has changed, or perhaps internal systems are different.
Reinforcing changes
It’s important employees are trained on any new policies and procedures for both internal and external contact. Employees could get questions from customers or vendors, so be sure everyone is telling the same correct story so that there is not confusion in the marketplace.
Employees need strong reassurance that the changes are worth making. A show of the support must start at the top ranks of the organization so that everyone down the line follows the same patience of change.
If, six months from now, you announce another reorganization or, worse yet, announce you’re going back to the old way of doing things, employees will be confused and will develop a distrust of management.
In my experience, when a company has a major layoff, there are many resulting changes. Those changes typically need to be communicated to the employees for a full year following the layoff as conditions
change, personnel adapt to current responsibilities and the company settles into its new way of doing things.
An executive realignment is a similar circumstance if it has far reaching impact throughout the company. It may take some time before the questions diminish and people get up to speed on new procedures. Communication of what the changes mean, and how they will benefit the company, are critical to gaining support as the company turns in a new direction.
I think my answer confused the issue even more. I told him the shift could mean a great deal to his department and his personal future with the company, but then again, it could mean nothing.
It’s not unusual for a company to make changes that impact internal reporting relationships or lines of communication among departments. Some companies do so, and the change is so subtle that they don’t make an announcement about it. The thinking is that if it doesn’t impact the rank and file employee, there’s no need to confuse everybody by announcing a change.
Other companies think it is best to keep the lines of communication open and let the entire workforce know what is happening among the senior management team. The problem is, the average worker is like my colleague: If he is unclear about the change, or not directly affected by it, he may be left with more questions than answers.
Steps to follow
When a company reorganizes, management should ask a few questions before communicating the news to the entire to the entire population.
Who is affected? In some cases, the only people affected are the top executives themselves. Sometimes just the formal reorganization is just a public acknowledgment of changes that have taken place gradually within the company, such as one executive taking a larger, more direct role in a certain area of the business.
But in other cases, the reorganization can have a broad, sweeping impact throughout the organization. It could mean that the company is moving in a new direction or that it is consolidating operations to cut cost. In these cases, it’s important that employees know about the shift and how their jobs could be altered as a result.
Why was the change made? Typically, there is some impetus for reorganization. A merger or acquisition could be the cause, or the company may shift its focus to keep up with a changing marketplace. Or perhaps a key manager left the organization, or moved to another company facility, causing this particular office to reassign duties among the remaining executive team members.
Employees who are not given a full explanation may fill-in the blanks themselves. Rumors could run rampant. If people are leaving the company or executives are changing roles, employees might conclude that someone was forced out or that a manager was demoted to other responsibilities due to poor performance.
What changes will employees have to make? There are many scenarios in which employees will have to their job differently after the reorganization. Maybe the company name or primary line of business has changed, or perhaps internal systems are different.
Reinforcing changes
It’s important employees are trained on any new policies and procedures for both internal and external contact. Employees could get questions from customers or vendors, so be sure everyone is telling the same correct story so that there is not confusion in the marketplace.
Employees need strong reassurance that the changes are worth making. A show of the support must start at the top ranks of the organization so that everyone down the line follows the same patience of change.
If, six months from now, you announce another reorganization or, worse yet, announce you’re going back to the old way of doing things, employees will be confused and will develop a distrust of management.
In my experience, when a company has a major layoff, there are many resulting changes. Those changes typically need to be communicated to the employees for a full year following the layoff as conditions
change, personnel adapt to current responsibilities and the company settles into its new way of doing things.
An executive realignment is a similar circumstance if it has far reaching impact throughout the company. It may take some time before the questions diminish and people get up to speed on new procedures. Communication of what the changes mean, and how they will benefit the company, are critical to gaining support as the company turns in a new direction.