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6 Simple Things Every Reorganization Needs to Succeed

Let’s face it: Nobody actually enjoys a corporate reorganization. While they can be an exciting time for a growing business, there are a myriad of reasons why reorgs tend to go south. Common struggles like disengaged employees, misaligned teams, and a bustling rumor mill present a range of problems for leaders to address.

Humans are, ultimately, creatures of habit. We feel uncertainty—which often breeds anxiety—during times of rapid change. In the midst of a reorganization, the future can feel uncertain—both for the individual employees and for the organization as a whole. In fact, according to research by McKinsey & Company, only 23 percent of corporate reorgs are deemed successful by the companies executing them.

However, with that being said, there are a few simple things every reorganization needs to succeed, and they really do make all the difference. By considering each of these in your reorg strategy, you can ensure it’s as smooth and successful as possible.

1. Realistic Goals and Expectations

First and foremost, it’s important to set realistic goals and expectations for your reorg. Think about the goals you’d like to accomplish as a result of restructuring, both short term and long term. Too often, companies set their sights too high, with unreasonable expectations for how quickly they’ll see results. Instead, set small, manageable goals that lead up to your ultimate vision, as this will help bring it to life in a way that’s realistic.

2. A Primary Decision Maker

We’ve all been there before. When there are too many cooks in the kitchen, it’s almost impossible to get things done. To help organize and manage change, it’s important to appoint a primary decision maker. This will help guide the process and ensure it doesn’t get held up due to a lack of clarity about who’s responsible for signing off on key decisions.

Learn more in this related guide: Reorg Roadmap: A Start-to-Finish Look at Corporate Restructuring.

3. Multiple Team Contributors

Of course, appointing a primary decision maker to make all the executive decisions doesn’t mean you shouldn’t take advantage of multiple perspectives. When you’re managing a corporate reorganization, it’s helpful to include contributors both in and outside of the C-suite. This leads to broader perspectives, new ideas, and—ultimately—better decision-making.

4. Effective Planning and Execution

So much that goes into a successful reorganization lies in effective planning and execution. It’s essential that you not only proactively plan for your reorg but also actively manage and execute changes—even the most innovative strategy won’t make a difference if you fail on execution. You can navigate this issue by creating a detailed plan, covering everything from deadlines and key steps to the tools you’ll use along the way.

5. Open Internal Communication

Poor communication is frequently the downfall of reorganizations. All too often, companies initiate a corporate reorg without being open and transparent about the changes that will take place. This approach just does not work—it leads only to assumptions, rumors, and uncertainty. Rather, clear and frequent communication is the key to avoiding unwelcome anxiety and distraction. Host town hall meetings and one-on-one discussions to provide clarity about the reasons for the change and how it will impact people’s roles.

6. An Updated Company Org Chart

Because a reorganization naturally means changes to the company’s structure, an updated org chart is a great resource that can help employees visualize what’s ahead. With the help of live org chart software (like Pingboard), you can create a visual representation of how individuals and teams fit together within the organization. You can also take advantage of org chart software to assist with workforce planning for the reorg. It allows users to create multiple private versions of the org charts they’re working on, and then to share them with contributors to request feedback.

Ease the Reorg Process with Org Chart Software

Managing a successful corporate reorganization is never easy—but with a few simple things in place, you can ensure a seamless transition for you and your employees. Still struggling to navigate the reorganization process? Download our Reorg Roadmap to successfully manage your next reorganization.

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Cameron Nouri
by Cameron Nouri
I am the Director of Growth at Pingboard. I consider myself an entrepreneur at heart. I love trying new things and taking educated risks on new ventures, both professionally and in my personal life. I bring that passion to work everyday where I enjoy helping others discover the power that Pingboard can unlock.