When Reorgs Go Wrong

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In pursuit of improved performance, many companies mount restructuring efforts. But research from Bain & Company found that while 88 percent of company leaders believe their reorganizations will achieve goals, only 36 percent of employees working in those new structures agree.

In pursuit of improved performance, many companies mount restructuring efforts. But research from Bain & Company found that while 88 percent of company leaders believe their reorganizations will achieve goals, only 36 percent of employees working in those new structures agree.

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The problem? Swapping responsibilities between departments and moving boxes around an organizational chart doesn't address the day-to-day demands of how teams work.

The problem? Swapping responsibilities between departments and moving boxes around an organizational chart doesn't address the day-to-day demands of how teams work.

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According to Tracy Thurkow, partner at Bain & Company and leader of its Global Center for Culture and Behavior Change, that disconnect is a confidence gap rooted in proximity to the design. "Leaders see a clear picture, but employees experience unclear decision rights, confusing interdependencies, and insufficient support," she tells TD magazine.

According to Tracy Thurkow, partner at Bain & Company and leader of its Global Center for Culture and Behavior Change, that disconnect is a confidence gap rooted in proximity to the design. "Leaders see a clear picture, but employees experience unclear decision rights, confusing interdependencies, and insufficient support," she tells TD magazine.

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Bain's survey of 1,000 executives and employees who experienced an organizational restructure reveals that employees generally understand the goals of the reorganization but not how to operate successfully within the new structures. Only two in 10 employees say they received sufficient training, coaching, or tools to adapt to new ways of working.

Bain's survey of 1,000 executives and employees who experienced an organizational restructure reveals that employees generally understand the goals of the reorganization but not how to operate successfully within the new structures. Only two in 10 employees say they received sufficient training, coaching, or tools to adapt to new ways of working.

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"Organizations announce and onboard, but don't ensure people can operate differently, so people fall back into old habits before the ink on the org chart is dry," Thurkow points out.

"Organizations announce and onboard, but don't ensure people can operate differently, so people fall back into old habits before the ink on the org chart is dry," Thurkow points out.

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The onus to translate restructuring efforts often falls on middle managers, even as their own work responsibilities shift. Only 57 percent believe they receive the support and training necessary to clarify different workflows and processes to their teams.

The onus to translate restructuring efforts often falls on middle managers, even as their own work responsibilities shift. Only 57 percent believe they receive the support and training necessary to clarify different workflows and processes to their teams.

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Thurkow notes that L&D can play a critical role in boosting the effectiveness of a reorganization, particularly by "equipping middle managers with practical tools and coaching, both to adapt their own roles and for helping their teams adapt."

Thurkow notes that L&D can play a critical role in boosting the effectiveness of a reorganization, particularly by "equipping middle managers with practical tools and coaching, both to adapt their own roles and for helping their teams adapt."

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She adds that L&D is best prepared to put "a sharp focus on helping people actually work differently. That starts with driving clarity: how decisions are made, how workflows change, and how work moves across teams so people can internalize changes before being expected to perform them."

She adds that L&D is best prepared to put "a sharp focus on helping people actually work differently. That starts with driving clarity: how decisions are made, how workflows change, and how work moves across teams so people can internalize changes before being expected to perform them."

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For example, in When a New Organizational Structure Isn't Enough: How to Truly Live Your Operating Model, Bain describes how an energy company successfully launched an operating model redesign. Rather than stopping at structure, executives identified change hot spots, mapped priority workflows, and clarified decision rights and behavior expectations. Targeted training for leaders, middle managers, and individual contributors, as well as embedded feedback loops, helped more than 3,000 employees transition into new roles.

For example, in When a New Organizational Structure Isn't Enough: How to Truly Live Your Operating Model, Bain describes how an energy company successfully launched an operating model redesign. Rather than stopping at structure, executives identified change hot spots, mapped priority workflows, and clarified decision rights and behavior expectations. Targeted training for leaders, middle managers, and individual contributors, as well as embedded feedback loops, helped more than 3,000 employees transition into new roles.