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How to Identify Problems with Your Corporate Reorganization

In an age when companies experience all sorts of change, at some point, a corporate reorganization may be in the cards. A corporate reorganization often impacts people across the entire organization, as well as key processes and the tools employees use to perform their work. However, many corporate reorganizations encounter a range of problems such as disengaged employees and misaligned teams. According to a McKinsey study, only one-fourth of company reorganizations meet their intended objectives and improve company performance. Here are four signs your corporate reorganization may have some problems, as well as some ideas for how to tackle them:

Low Employee Engagement

During a reorganization, employees may feel disconnected and like they don’t know what’s going on. Constant changes in team leadership and confusion about how the reorganization specifically impacts individual roles can negatively impact employee engagement and the sense of commitment people feel toward the company and their work. To address waning employee engagement in the midst of a reorganization, it can be helpful to create opportunities for employees to share feedback, ask questions, and benefit from hearing about others’ experiences. For example, in-person and virtual forums and internal social media offer opportunities to stay connected and informed. In addition, using a live org chart and its detailed employee profiles helps people get to know one another and learn who’s who.

Disoriented New Hires

Being a new employee can be challenging enough, but it can be even more disorienting when joining in the midst of a corporate reorganization. A new hire stepping into an organization that is already in flux may find it difficult to get a good understanding of how teams fit together and whom to go to for key information. Some examples of onboarding tools that can help new hires gain their footing in the newly reorganized structure include:

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

Misaligned Individuals and Teams

A corporate reorganization can sometimes feel like chaos for the employees whose teams and roles are affected. In addition, there can be a lack of clarity about who is responsible for what and how teams are expected to work together in the new structure. Not only does each employee need to be correctly aligned to the right position and team, but each team must also be aligned with the broader organizational strategy. A live org chart can be particularly useful in helping to support organizational alignment. It not only provides broader context about how teams and individuals fit together but also helps individuals see new reporting relationships and how teams align with company goals. Using a live org chart and the wealth of information it contains keeps teams aligned and supports better strategy execution, more efficient decision-making, and greater clarity about roles throughout the organization.

Insufficient Growth Planning

A successful reorganization should ideally ensure that you have the right person in each role and team. If that’s not happening, it could be because of poor workforce planning. Workforce planning helps company leaders understand and anticipate staffing levels and talent needs before, during, and after a reorganization. Without sufficient planning, you can experience talent gaps and redundancies that impede company growth. A live org chart can bring the right people together to work on forward-thinking staffing and workforce plans so that the organization has the talent it needs as it grows. By creating collaborative versions of the live org chart, workforce plans can be easily shared with key leaders throughout the company, and shared with the broader organization when ready.

A corporate reorganization often impacts every part of the business, from new hires to existing teams. If you experience any problems as a result of a reorganization, there are a range of available tools to help you tackle challenges related to employee engagement, organizational alignment, and planning for future growth.

Download the Reorg Roadmap

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.