Leading through change

Planning a restructure? Seven mindsets that separate the ones that work

Most restructures that go badly don’t fail on the org chart. They fail on how leaders approach the moment. Here are the traps we see most often, and the mindsets that keep leaders out of them.

Sam Franklin

Maybe you have a mandate to scale your impact. Maybe growth has outpaced the structure you built. Maybe it’s time to revisit the mission and realign your work with what the people you serve need now. Whatever the reason, you’re about to change how the organization is put together.

We’ve helped a number of organizations through these periods of intense change. In every case, the deciding factor wasn’t the new structure itself. It was how leaders approached the change moment.

The trap, and the mindset that prevents it
  • Treating it as a cost exercise to get through1 Restructuring moments are a leadership opportunity
  • Solving it alone and announcing the answer2 The underlying problem is everyone’s problem
  • Softening the facts into talking points3 Trust is the key, and honesty is the best policy
  • Resolving uncertainty too fast, or never4 Uncertainty is a necessary place to visit and a hard place to live
  • Pretending people don’t see what’s happening5 Assume people know more than you think
  • Putting off the hard conversations6 Anticipation is the worst part of hard conversations
  • Fixing the culture later7 The way you handle the reorg is the culture

1. Restructuring moments are a leadership opportunity

A restructure is challenging, but it’s also a chance to advance the mission: to realign resources, simplify how work gets done, and put people where they can contribute most. It’s also a chance to support people through a vulnerable time. Leaders who offer guidance and understanding in that moment build a kind of trust and stability that lasts well beyond the change.

2. The underlying problem is everyone’s problem

One of the most important steps leaders miss is creating shared understanding and ownership of the problem. When it’s everyone’s problem instead of the leader’s alone, leaders are far more likely to get the help they need.

Successful leaders invest time in building that shared understanding and bringing the right people together, rather than figuring it out alone and telling everyone the answer. Even a great answer is unlikely to land if no one else understands the problem or feels it’s theirs to solve.

Some leaders feel a strong instinct to protect their teams from the problem, sparing them the angst and uncertainty so they can keep focusing on their jobs. This usually backfires.

3. Trust is the key, and honesty is the best policy

Trust is the foundation of any successful restructure, and transparency is how you build it. Keep people informed about why the change is happening and what you expect it to accomplish.

In practice, trust is built by being direct about why the change is necessary; setting transparent dates for decisions and sticking to them; working to build consensus, and making the hard call when consensus isn’t possible; communicating outcomes clearly, with the facts front and center rather than lost in salesy rhetoric; showing people you trust them with sensitive information; and delivering hard news with dignity and compassion. Or, as we put it: trust over comfort.

4. Uncertainty is a necessary place to visit and a hard place to live

Uncertainty is inevitable in a restructure. People dislike it, and leaders come under intense pressure to resolve it, even if that means settling for a worse outcome. Part of the art is introducing uncertainty on purpose and helping the team stay in it long enough for better options to emerge.

At the same time, uncertainty can’t be permanent. Set clear start and end points and transparent milestones, so people can see progress toward a resolution, know when to expect decisions, and count on specific points in the process. That structure is what makes the uncertainty bearable.

5. Assume people know more than you think

Restructures usually involve closed-door leadership meetings and confidential documents. Some of that is necessary. But don’t be fooled: the rest of the organization knows when something is going on. They may not see the whole picture, but they can tell when a strategy has stopped working, revenue isn’t adequate, or a big change is in the air.

One of the biggest mistakes leaders make is assuming people know less than they do, then talking down to them or denying what’s in plain sight. Treating people as smart, aware, and full of useful ideas is one of the best ways to build confidence in the leadership and the process. Treating them as naive is one of the fastest ways to lose it.

6. Anticipation is the worst part of hard conversations

Difficult conversations are an inevitable part of a restructure. Handled with dignity, honesty, and compassion, they rarely turn out as badly as we fear. They are often a relief. In many cases, the other person already anticipated the outcome or was thinking along the same lines.

The longer leaders delay these conversations, the longer they suffer themselves, and the longer they put off outcomes that could benefit both the people affected and the organization.

7. The way you handle the reorg is the culture

In moments of intense change, people watch leaders most closely, checking whether their actions match the values the organization calls core. Done well, a restructure reinforces those values by showing what they look like when the stakes are highest. Everything leaders do in these moments communicates who the organization is and what its culture will be on the other side.

We wrote a step-by-step guide to putting this into practice, from announcing the change to the conversations that follow: how to lead a reorganization without wrecking your culture.

The opportunity inside the change

Restructures are complex and often painful. They are also one of the rare moments when a leader can strengthen the culture, deepen commitment to the mission, and build stronger relationships all at once, because everyone is paying attention. Approach the moment with these mindsets, and the organization that comes out the other side can be clearer, more capable, and more trusting than the one that went in.

See it in practice.

HCM Strategists

Building the next version of the firm.

Over three years, Outside Angle partnered with HCM Strategists as the firm moved from HCM 2.0 to 3.0. The work connected leadership development, ways of working, and shared ownership. HCM is now moving toward 4.0 with greater independence and more selective support from Outside Angle.

Read the HCM Strategists story

Joyful Reading Co.

A culture that can grow—and a team that can carry it.

From Zoobean to Joyful Reading Co., Outside Angle helped build and evolve an operating system through growth and combination. The organization is now taking greater ownership of its systems, with Outside Angle shifting toward guidance and targeted support.

Read the Joyful Reading Co. story

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