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Common Restructure Pitfalls – What NOT to do.

Change is never easy, and when you’re dealing with change that potentially impacts an individual’s ability to financially support themselves and their family, it can be very hard all round.

Looking at your business critically to make sure you have the right number of people, with the right skills in the right positions doing the right things is an essential part of managing your business well. It is also an on-going process. When this is undertaken in a tight economic climate, it often means that downsizing options need to be explored.

Despite best intentions, detailed planning and a thorough process, it is easy to make one small mistake which can derail everything.

In life, change in inevitable.

In business, change is vital.

(Warren G. Bennis)

We work with a variety of organisations supporting them with their change processes, so we thought we would highlight the most common mistakes we see, so you can make sure you tread a safe path in your business.

What NOT to do in a change process:

  1. Don’t keep your team in the dark around the business position

We know that most of us like to keep things positive and don’t want to cause unnecessary stress for our teams. However, it is important that your team do have some prior understanding that trading may not be quite where you need it to be. If a restructure is the first your team learn about this it can come as an unpleasant surprise, can be more emotional and ultimately more difficult for everyone.

  1. Don’t announce that a restructuring is being considered before you have made a definite decision to proceed with the process and are well organised

Talking about the possibility of a downsize well before the process starts is risky and can cause unnecessary stress for your team, both those who might be impacted and those who will not. It can result in resignations from valuable team members, undermine morale and negatively affect the process when you do start.

Keep the messaging clear on business conditions but stay away from talk around restructures until you know what you are doing and have a clear plan.

  1. Don’t have any side chats with some of your team.

If you are involved in implementing a new internal promotion or appointment, it can be tempting to want to let the person/s in on a potential restructuring plan so that they know that they will be safe. The intention being to make sure you retain them and keep them engaged. It is a risky move. It is also relatively common for these people to share this information and undermine the integrity of a genuine process. If your team learns the selection process is predetermined then no matter how well the change process is conducted, you put your business at risk.

  1. Don’t neglect the detail

Often businesses will focus on the business rationale and forget the job details or job descriptions. Your team don’t only need to know “why” you are considering the change, they also need to know what it means for them, what job they may be doing or where their current tasks will be reassigned to. And if a role is being disestablished and other staff are picking up their tasks, these people need to be consulted with as well.

  1. Don’t ignore the feedback given.

All feedback should be properly considered and responded to. This includes even the small details that may appear to not have any impact on the overall outcome of the process. We’ve seen some great ideas come from feedback in a change process, so even though you may have a clear idea of what you want to do, it is imperative to keep an open mind. All solutions and alternatives should be considered, including possibly tweaking a job description, having part time options, or something completely different that might be suggested.

  1. Don’t expect your team to be operating in a completely BAU space during the change process

Change is hard, and depending on the scale of change some of your team may not be able to focus on anything else. Plan for this at the beginning. Could people work from home? Can they have special leave? Can you take the pressure off for a while? We suggest planning the timing, taking care to cater for any critical business projects or deadlines and making sure your leaders know to keep the pressure off during this time.

A good change process includes:

  • A clear well thought out business case and plan.
  • Clear and honest communication
  • A genuine consultation period and consideration of feedback
  • Empathy and support for your team

While change processes are tough for any organisation, a detailed step-by-step plan and schedule makes for reduced risk and fair implementation.

Positive People have over 30 years’ experience supporting businesses to get change processes right. Call us now on 09-445 1077.