How do you feel? Are you excited? Concerned? Hoping that things won't change as much as you fear that they will?
Management seems to think very highly of the revamped organizational structure. They talk about opportunity and possibilities for growth and collaboration.
Surprise! Surprise!
But consider this. If it really is good to undergo a reorganization, why didn't management tell you about it in advance? Everyone could have anticipated this with a sense of forthcoming excitement. "Hey! Did you hear? A reorganization is coming! We don't want to miss out on that!"
Of course, that's not how it works. That's not how it works at all. Management didn't tell you in advance, because reorganization is rarely a positive experience, and if you've every endured one, you're probably not looking forward to going through the process again.
Your daily routine is about to become more difficult. You may end up working more and liking your job less. Colleagues whom you have come to know and on whom you depend will be moved around or let go. You might be reassigned to a new boss, perhaps a person who knows little about you.
Well, guess what? There's nothing that you can do about it. All of these decisions were made before you knew what was going to happen. The people who made them didn't ask for your opinion. Your work life is being altered significantly, and they expect you to accept it - at least long enough to determine whether they need to keep you on.
It's probably a good time to polish up your résumé. Because in addition to things getting more challenging, more changes will be coming. And then next time, you might end up with a target on your back.
Why Reorganize?
There are three main reasons to reorganize. When company wants to change its core business, it may benefit from subtle or radical restructuring.
In the 1980's, IBM was primarily a manufacturer of large mainframe computer systems. But the management of IBM foresaw a different future. IBM restructured and focused more of its business on technology services and consulting.
When the technology bubble burst at the end of the 1990's, IBM maintained its business (and stock price) while many other "tech" companies stumbled. IBM's reorganization was a well-timed and well-executed success.
Transforming the business may be the best reason to reorganize, but it can still be an uncomfortable experience. No one likes to endure unanticipated changes. But change is often necessary. If your organization becomes more competitive and prosperous as a result of restructuring, that might work in your favor.
Cost Cutting and Downsizing
Sometimes companies reorganize in order to cut costs. They might downsize a less profitable division or combine teams in an effort eliminate redundant jobs.
Unfortunately, this means that some people will be left behind. If you make it through a round of layoffs, consider yourself lucky but only in the short term. Your number can come up next time.
If you are laid off during a restructuring or at any time, handle it professionally. It never helps to burn bridges. Accept what's happening and put all of your energy into finding a new place to work. Leaving your old company and making a fresh start might turn out to be a blessing in disguise.
Circular Reorganization
The third and final reason to reorganize is least productive and the most difficult to justify. Here's how it works.
Imagine a hospital with several different departments - orthopedics, obstetrics, heart and lung care, internal medicine, etc. Each department employs both doctors and nurses.
The hospital's administration does a study. Nurses in different departments do things differently. It's difficult to train someone from one area to work in another.
The administration suggests the creation of a centralized nursing department. Move all of the nurses out of their individual departments and into a centrally managed pool. Individual departments will pay depending on how many nurses they use.
A key selling point is that the new structure will help to standardize practices across departments. All of the nurses will be taught to do things in the same way. They'll be able to cover shifts in different departments and change departments altogether if they so choose. This will reduce burnout and increase the experience level of nurses throughout the hospital.
The change is implemented, but after a while, some of the departments beging to complain. The nurses that they trained have been moved into other roles. The new nurses require more training and observation. The doctors complain that they are paying more money for a lower level of service.
New administrators take over and promise a solution to the doctors' concerns. They move most of the nurses out of the centralized nursing department and put them back into individual departments.
Great Waste
The first set of hospital administrators boasted on their résumés that they increased efficiency and effectiveness by creating a centralized nursing department.
The second set of administrators boasted that they increased efficiency and effectiveness by decentralizing nurses and moving them back into the departments.
Both can make a case for what they did. But in reality, did the hospital run any more smoothly either way? Did the patients receive better care either way?
The nurses still worked hard every day caring for patients regardless of their reporting structure.
The only people who really benefitted from the various attempts at reorganization were where administrators. Restructuring departments gave them something to do, something to make them feel important, and something to put on their résumés.
Even if reorganization didn't accomplish anything important, it sounded nice.
Bottom Line
Reorganization is a reality of corporate life. Sometimes it fulfills a clear and vital purpose, and sometimes, it's just a big waste of time.
In nearly every case, however, even when it's a good idea, reorganization creates stress, confusion, and additional burdens for the work force. Reorganize if you must, but accept that reorganization is more than moving boxes around on an org chart.
There is a real human cost to restructuring. Think carefully before asking your people to assume that cost.
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