Abstract
Organizational restructures require significant time, effort, and resources, yet they often fail to deliver the intended results. This article highlights the four most common pitfalls leaders encounter when restructuring their teams and provides five best practices to ensure a smooth transition. Through real-world case studies, we offer actionable insights to help leaders move beyond shuffling org charts and create lasting impact.
Introduction: Moving Boxes Won’t Move the Business
“Wow, it’s taken us months to restructure our IT function,” the CIO sighed, turning to the HR leader. “That was a lot of time, effort, and expense! Now our function will finally hit its goals we just needed to rearrange a few things.”
Sound familiar? Many leaders assume that once they’ve mapped out a new structure, the real work is done. They shuffle reporting lines, adjust job scopes, and finalize the chart—expecting everything to fall seamlessly into place.
But too often, nothing moves forward. The reason? Moving boxes on a chart doesn’t move the people inside them. Employees were left out of the process, and no one guided them through the transition. Without the right leadership and engagement, teams remain stuck, unable to perform in the way the new structure intended.
Leaders today face constant disruption. Most executives (91%) report having too many conflicting priorities, and many admit that their growth initiatives lead to wasted resources at least some of the time. Given these pressures, it’s no surprise that the final stages of a reorganization (where the real transformation happens) are often rushed, deprioritized, or stretched so long that the original intent is lost.
Through decades of working with leaders and teams, we’ve seen this cycle repeat itself. Below, we outline the four most common gaps that cause reorganizations to stall and the five best practices that ensure leaders don’t just move the boxes, but move the business forward.
Four Common Reorganization Pitfalls
1. The “Magic Key” Illusion
Many leaders believe a new organizational structure is the “magic key” to high performance. They spend countless hours designing Visio diagrams, crafting PowerPoint decks, and socializing the structure. But without execution, the best-laid plans remain just that: plans.
Case Study:
A global manufacturing firm merged with a competitor, resulting in duplicate roles across departments. A senior leader spent nearly a year refining the new structure for her 300-person team, drafting countless versions of the org chart. By the time it was finalized, company strategy and leadership had shifted, including the leader herself. The structure never came to life, and the intended benefits were never realized.
2. Exhaustion & Fatigue
After months of planning and socializing new structures, leaders and HR teams are often too drained to focus on what comes next: embedding the change. As business-as-usual demands pile up, reinforcing new ways of working becomes an afterthought. Without deliberate reinforcement, employees revert to old habits, and the reorg stalls before it ever really gets moving.
3. Rose-Colored Glasses
Leaders often assume that once they announce the change, employees will naturally adjust. But teams need more than a vision; they need consistent leadership, clear guidance, and support in navigating their new roles. Skipping these steps leads to confusion, resistance, and ultimately, failure.
4. The Calendar Trap
Reorganizations are frequently tied to artificial deadlines, like an upcoming CEO town hall or a major company announcement. This pressure often leads leaders to prioritize speed over effectiveness, rushing the process and leaving gaps that will later need to be patched.
Case Study:
A financial services company was implementing a new IT system. The timeline was aggressive, and complicated by staffing shortages and integration challenges. When asked if the deadline could be extended, leadership refused, not because of business needs, but because renegotiating a vendor contract would be inconvenient. The result? The project team worked overtime for months, increasing costs and burning out employees, when a simple contract adjustment could have avoided the crisis.
Five Best Practices for Reorganizations That Actually Work
1. Move with Purpose: Assess the Real Need for Change
Before launching a reorg, evaluate whether structural change is truly necessary. Ask:
- Is restructuring the best way to achieve our goals?
- Are there less disruptive alternatives?
- What specific value will this move create?
Key Triggers for Reorganizations:
✅ A major strategic shift (e.g., mergers, acquisitions)
✅ A change in go-to-market strategy
✅ Significant workforce attrition or retirements
✅ A transition to shared services or centralized functions
2. Align Structure with Culture
Just like in real estate, location matters. In business, that location is culture. No matter how strong your structure looks on paper, it won’t work if it clashes with company values and behaviors.
Case Study:
A multinational consumer goods company created an innovation function to drive new revenue streams. They integrated finance, R&D, and operations into a single team, but this only worked because the company’s competitive, fast-paced culture supported rapid experimentation. The structure thrived because it aligned with the way the company naturally worked.
3. Build a Strong Foundation
Before teams can move forward, they need clarity. Employees should understand:
- Why the reorganization is happening
- What’s changing for them
- How it benefits the team and the company
Without clear communication, uncertainty will slow progress. Equip leaders with messaging that is direct, concise, and compelling.
4. Involve People in the Process
Teams don’t just move, they need to be guided. When employees are actively involved in designing new workflows, they become invested in making them work.
Case Study:
A global payroll department redesigned its structure by taking the time to thoroughly map existing workflows with input from employees at all levels of the process. This approach uncovered inefficiencies and built buy-in for change, ensuring a smoother, faster transition to the new model.
5. Keep Talent at the Forefront
Throughout the restructuring process, ask:
- What skills do we need for the future?
- How can we retain and develop top talent?
- Are we aligning roles with employee strengths and aspirations?
Ignoring talent considerations leads to disengagement and turnover. Work closely with HR to assess skill gaps and career development opportunities throughout the transition.
Conclusion: Don’t Just Move the Boxes—Build the Right Home
Restructuring isn’t just about moving the pieces on an org chart—it’s about mobilizing people for success. The most effective reorganizations aren’t just well-planned, they’re well-executed.
Leaders who move with purpose, align structure with culture, and engage employees in the process will create an organization that doesn’t just look different on paper—but one that moves forward with momentum.
This article is part of the Precision Matters series. In the series, HR and L&D leaders share their expert strategies for utilizing Learning & Development tools to craft precise, impactful business outcomes and foster organizational growth.
