Ep #70 - Re-Org Roulette: 3 Actions to Keep Your Team Focused and Productive During a Restructuring
Hey Rebels. Welcome back to the final episode of Season 7. If you're a loyal listener, you know I do 10 episodes each season and then take a break (usually a month off) before I return with a new season. Season 7 has been filled with incredible interviews that I've received amazing feedback around, so thank you to all you listeners and fans for sharing your takeaways and that you're enjoying the podcast. I set out to create something unconventional to equip you with the knowledge, insights, and courage to step into control and the driver's seat of your life and career. I know I'm speaking to powerhouse professional women and leaders who are making an impact in their organizations but are often more interested in impacting their own lives. So after 7 seasons, I want to thank my long-term listeners, and to those of you joining for the first time, I welcome you as well.
This episode doesn't contain an interview; instead, I wanted to share some key points from a recent Executive Leadership Forum I held last week. I call them the Executive Lab, and it's a place for leaders and executives to come together to discuss current relevant topics of interest, or that may be most pressing within their organizations.
The topic for this lab was Re-Org Roulette: 3 Actions People Leaders Need to Take in the Next 30 Days to Keep Their Teams Focused and Productive During a Restructuring. It's a mouthful, right? We had a great confirmation and an incredible guest speaker, and it was fun to share insights and innovative approaches to this issue. And that's what we'll talk about today on the podcast.
Now, whether you're in the midst of a reorg or not, I believe there are still takeaways that you may find helpful in your own career or leadership journey, so lean into what I'm going to share with you.
Throughout my career, I've been part of multiple reorganizations. I've led them, supported them, and been a participant, so I know the experience from the vantage point of leadership and fearful employee wondering what will happen next.
I've led a reorg as an internal leader at a small transportation company that resulted in restructuring and layoffs. I've been the internal consultant overseeing employee engagement and productivity at a large academic institution. And I've been the external consultant working in the aftermath of a widespread restructuring of a healthcare system, working to stabilize a workforce filled with very angry and distrustful people.
Restructurings or reorgs are an inevitable part of corporate life. In fact, according to a Harvard Business Review study, 80% of employers see restructurings continuing at an equal or faster pace in the next three years. And that could be for a variety of reasons, from mergers, buy-outs, and bankruptcies, to preemptive to protect profit margins.
So before I go into what organizations and leaders should do to keep employees engaged, focused, and productive, I want to share a few things that you, as an individual going through a reorg, can do to position yourself for success better, unless of course, you're hoping the reorg will be your ticket or "buy-out" out of there.
Assess - This is the opportune time to seriously ask yourself, "Do I want to be here?" Not just in your position but whether or not you want to be a part of the company. Ask yourself if you still feel aligned with their mission and values; if you can still make a contribution, there are unexplored opportunities for you. If the answer is YES, fantastic. Use this time to think about what's next for you in the company. If you've been a stellar contributor, you may have a bit of leverage right now because organizations are going to want to keep their most valuable assets. But don't wait to tell what's in store; partner with the org to help them see the best place for you, whether that's on a new team, department, or higher up in leadership.
If you discover you've gone as far as you can go, realize you've felt stifled in your career these past few years, and don't see any viable opportunities, then now may be a great time to start positioning yourself for what's next. We have plenty of episodes available for how to do that. A reorg could be a useful inflection point, even if you didn't realize you were ready for one.
Network - This may sound counterintuitive, but this is also a great time to network, making new connections and strengthening existing ones. You never know where people will land after a reorg, so the relationships you build today could benefit you tomorrow. Networking throughout the organization isn't necessarily about securing a position for yourself after the reorg (although it could be - it's definitely how I survived a reorg), but it's really about building relationships that you may need to access after the reorg; especially if things don't go as planned. Before you start networking, however, have a plan and be discreet.
Show Up - If you know you want to stay with the company and are not dealing with any uncertainty with your role, then step up and help out. Show what you're capable of and how valuable you can be to the organization. Whether you are an individual contributor or a manager, you can use this opportunity to shine. Resiliency and agility are two key leadership attributes, and keeping your head under this kind of pressure will speak volumes. This might mean joining one of the change management teams or leading the communication efforts. Resist the instinct to sit back or "wait and see" or worse, be part of the negative chatter that's going on about the reorg. Instead, go all in and show 'em what you got.
A shake-up within an organization can offer opportunities for growth and innovation while simultaneously generating fears, doubts, and distractions. The challenge is to maintain productivity and focus amid the chaos.
Ok, if you're a people leader within an organization, you can also take immediate actions during and after a reorganization. These are the 3 critical actions I shared at our last Executive Lab that are very favorably received.
We help organizations unlock innovation by sparking creativity through sometimes unconventional approaches that advance inclusivity, safety, and trust. Disrupting common or typical patterns of thinking and acting allows the mind to create new and creative solutions that can positively impact change. It's similar to when you disrupt old mindset narratives and patterns or limiting beliefs that have held you captive to a particular way of thinking and being in the world. We like to present opportunities to disrupt patterns to spark creativity and innovation.
So, for leaders, you should:
Reset the Baseline - A reorg in and of itself is a pattern disruption of the system, so that means you need to reestablish a baseline. The mistake organizations make is trying to pick up as "business as usual." We learned from the pandemic that when there's a significant disruption, it changes the people being disrupted, and as such, they need time to find a new normal, a new baseline, from which to operate. No team can achieve high-level results without creating a new and clear plan for operating (forming), reconciling different expectations (storming), figuring out the new way of work (norming), and achieving results in a way that's in alignment with organizational values, mission and vision and the strengths of those remaining to do the work (performing). By resetting the baseline, you can create opportunities to address "layoff survivors" guilt and lack of motivation which can impact up to 71% of those who remain. By highlighting (a) how the new structure will empower and better serve everyone while (b) aligning it with the vision for the next iteration of the organization and (c) showing how each role contributes to this new future, a leader will support employees becoming more focused and engaged. This seemingly simple step is pivotal in restoring morale, motivation, and alignment to a unified purpose, paving the way for a smooth transition.
Elevate the Bench - Leverage restructuring as an opportunity to identify and nurture your new and next leaders. Research indicates that companies that take a proactive approach to leadership development are 4.2 times more likely to outperform those who react passively during a restructure. That can make a tremendous impact on an organization's bottom line after the restructuring is over. Building leadership capacity in the next generation of leaders prepares them for succession and drives engagement and productivity across the organization. While organizations should already practice regularly reviewing talent distribution, a reorg is a perfect opportunity to start calling your top players up from the bench. The problem is most leaders don't know where the high performers are in their organizations and how to elevate them into the right leadership position. Offering talent, particularly female and diverse talent, opportunities for growth and development during a restructuring communicates a commitment to their future within the organization, fostering a sense of belonging and purpose, which can be critical to productivity.
Solicit Bad Ideas - Communication, particularly during restructuring, should be more than disseminating information; it must be a restorative process. Frequent and transparent communication can significantly alleviate anxieties. A recent study by McKinsey found that organizations that communicate openly during a restructuring reported 25% higher productivity levels than those that did not. But it's more than just having open conversations; it's about restoring trust and safety (or establishing it if it never truly existed). Psychological safety is often compromised during a restructuring, and one of the key indicators is fear of making a mistake or of not being seen as an integral part of the team. Incorporate micro-restorative events into your communication strategy, which can be as simple as regular town hall meetings or departmental check-in where ideas are solicited, the status quo is challenged, concerns are voiced, and questions can be asked. Push for a "no sacred cows" mentality and create a space where even rejected ideas aren't permanently discarded but instead kept in a parking lot to potentially be revisited.
From a systems theory or design perspective, these three actions can be viewed as integral gears in the machinery of a functioning organization. Systems theory emphasizes that an organization's success depends on the seamless interaction of its various components - the people, processes, and culture. So during a restructuring, ensuring that these gears continue to interact smoothly becomes crucial.
Resetting the baseline ensures the alignment of the various parts of the system to a unified goal with a renewed commitment to the organization's purpose, thereby increasing motivation and productivity.
Elevating the bench activates next-generation leaders, ensuring the system has competent guides to navigate the path ahead with a strong leadership pipeline to support future transitions.
Finally, transparent, value-based communication where bad ideas are solicited ensures that the components of the system - the employees - are informed, reassured, and heard, alleviating fear and building trust, reinforcing their connection to the system, and reducing any additional turnover while boosting morale.
So, as you can see, restructuring, while disruptive, can be a catalyst for growth and innovation when you're focused on the right things.
And that's it for this episode, Rebels! I hope you enjoyed and took away some insights that will serve you and your organizations.
See you next time, and until then, have an amazingly rebellious week.
