Restructuring? Ensure success!
Restructuring is a buzzword these days as the constantly changing future demands “more!”
Organisations are obliged to become more competitive, more innovative, more profitable, more functional! However, as corporate management strives to streamline or trim excess fat with financial, legal and operational strategy, the human element behind the story also requires key focus.
The people impact must partner the operational outcomes in terms of budget, strategic focus and planning. This is not an add-on, ad hoc or left-for-later aspect. The critical mistake is to focus on logistics, hoping that it will either all work out in the end, or that support mechanisms can be introduced like Red Cross services after the battle. By then, the damage is done, the costs (both direct and in-direct) are high and damage-control hinders the forward motion of the new organisational model.
It is a wise and effective organisation that recognises that this process needs to be continuously and authentically well communicated and supported. Placing value on the seemingly non-critical components of how the people in the organisation are feeling and integrating this into the entire process, will make all the difference in the long term.
Knowing that this will be a challenging, emotional roller-coaster and budgeting and planning for support, is a business-critical strategy. Here are eight of the most common Human Resource challenges to be aware of:
1
New people may be hired for key positions. For example: an external CEO to navigate the difficult decisions; an HR specialist to handle the challenging aspects of redundancies, new systems and redefined positions.The presence of new people, while essential for the process, can often create anxiety, distrust and a rapid increase in office politics. They will need to be integrated in such a way that their tasks can be effective, both for the immediately required results and the long term benefit of the whole company.
2
Employees will be made redundant or take on new roles and responsibilities. Again, this heightens interpersonal dynamics and personal stress levels. Resentment and anger flare and may be subverted into other behaviours. Most organisations recognise the value of supporting the exiting employees, but pay less attention to those “lucky enough” to get more responsibility. New roles can be embraced and supported with the right approach.
2
Survivor Syndrome manifests among people whose positions or jobs are unaffected by the changes. These people often get the least attention and yet develop very strong behavioural and emotional symptoms. Grief and guilt is common.
4
Departmental teams and chains of command change. Managers may over-compensate or under-perform in an effort to distance themselves from the restructuring process. Confusion, distrust, misplaced loyalties and communication breakdowns can occur. There may be lack of follow-through and clear leadership. Clients get affected.
5
New relationship dynamics develop as people re-align their loyalties and form different sub-groups. Sometimes loyalties are based on a shared sense of being a victim or being unfairly burdened with responsibilities. Office politics and coffee room chats become fraught - a distraction of stress and high emotion.
6
Even when everyone understands the reasons for restructuring, subversive emotions play out within the environment: distrust and suspicion, anxiety, stress, lack of loyalty, burn-out and apathy, defensiveness, grief, fear and anger. Gossip is fed by insecurity, people become overly reactive or cautious, morale flags. There is usually an increased rate of absenteeism and people under-perform or push themselves to extremes.
7
Leaders need support as they carry the burden of guilt and anxiety about being responsible for enacting changes. Some people become aggressive or passive aggressive in an attempt to defend themselves from the emotional weight of enacting policies.
8
Clients get mixed messages. Employees are disgruntled and show it. Service may be less efficient or the client may be privy to inappropriate information. Sometimes it is as simple as a client not knowing who to speak to anymore.
It is critical to place value on the human element of any organisational process. If you have read this blog before, or worked with dialogue, you know that restructuring can be bonding and strengthening, with employees communicating the changes effectively and engaging with the new roles and responsibilities.
Value your people! Whether it is a new direction or a basic survival issue, organisational restructuring can bring out the best in people and revitalise business beyond the wildest intended outcomes.