A Step-by-Step Guide to Organizational Restructuring

Organizational restructuring is a critical process that helps businesses stay competitive, align with new market demands, and prepare for future growth. Helen Tomlinson Director of People & Talent at ev.energy , shared her insights on how to successfully navigate restructuring in a recent episode of Talent & Growth - The Talent Acquisition Podcast . Here's a step-by-step guide based on her approach.

1. Start with Business Strategy

Begin by aligning the restructuring process with your business strategy and vision. Helen emphasizes that restructuring must be driven by clear business objectives. Ask yourself, "What are we trying to achieve in the next six months or even three to five years?" Ensure that your restructuring goals support your business strategy, whether it's entering a new market, scaling operations, or optimizing for efficiency.

2. Conduct a Skills Audit

A comprehensive skills audit is crucial to understanding the strengths and weaknesses within your organization. Review current roles, assess team structures, and compare them with your strategic objectives. Ask, "What roles and skills do we need to meet our goals?" This assessment helps identify whether you need to adjust existing roles, hire new talent, or redeploy employees.

3. Engage Leadership

Involve your executive team in the review process. Helen highlights the importance of collaboration at the leadership level to assess the state of your workforce. Leaders should evaluate whether the current roles align with strategic goals and identify any gaps in skills or capacity. This ensures the leadership is aligned on restructuring decisions.

4. Empathy and Communication

Restructuring impacts people, so empathy and clear communication are critical. Helen stresses the importance of handling the process with care and transparency. Recognize that restructuring isn't just about roles and responsibilities but also about the human impact on employees. Ensure that communications are timed appropriately, and be open and empathetic throughout the process.

5. Address Skills Gaps

Once skills gaps are identified, consider whether the skills already exist within your organization. Helen recommends exploring internal redeployment opportunities before hiring externally. If the required skills aren’t available, determine whether hiring, training, or bringing in consultants is the best path forward.

6. Maintain Trust and Morale

Communicating restructuring decisions to the broader business is essential to maintaining morale and trust. Helen advises transparency not just about what changes are happening, but why they are necessary. Explaining the rationale behind decisions helps employees understand and support the changes, reducing uncertainty and preserving the company's culture.

7. Continuous Feedback and Flexibility

The restructuring process doesn’t end with the announcement. Helen emphasizes the importance of continuous feedback and flexibility. Be prepared to adjust plans as needed and maintain open lines of communication for questions and concerns from employees. This approach helps create a smoother transition and ensures the organization remains aligned with its strategic objectives.

By following these steps, businesses can effectively manage organizational restructuring while keeping employees engaged and minimizing disruption.