In the ever-evolving corporate landscape, the rhythm of change often means company restructuring. While these transformations are sometimes crucial for growth, they bring forth a set of emotions, such as fear, insecurity, sadness, surprise, confusion, etc.
Navigating through company restructuring poses its challenges, yet employing specific tools can significantly ease the process for both employees and the leadership team; allowing for a smoother transition and cultivating resilience amid change.
Joan Beets, Managing Partner in Executive Search & Management Consulting at KennedyFitch, and Martine Corthésy, Founder & Professional Certified Coach for 19 years, offered valuable insights at a "Women in Leadership" event hosted at EHL. Let's delve into these reflections together.
Company restructuring, a complex process, fundamentally alters the operational and organizational fabric of a company. It aims to enhance efficiency, reduce costs, and shift strategic focus. However, this metamorphosis also brings with it a wave of uncertainty surrounding job security, shifts in roles or leadership, and potential changes in work culture. This can potentially lead to stress, anxiety, and even a sense of loss among the workforce. It's essential to acknowledge these feelings as a part of the change process.
According to a McKinsey Global Survey, amidst restructuring, 38% of employees found themselves distracted in their day-to-day activities, while initiatives pertaining to growth stalled. The survey further revealed that 66% of what is considered a successful company reorganizations had developed a clear communication plan for all internal and external stakeholders.
In the face of company restructuring, open and transparent communication plays a pivotal role. Employees deserve to know the reasons for restructuring and the expected outcomes. A clear, proactive communication strategy can help share information with the employees and ensure collective awareness of the process. Regular updates can help alleviate concerns and prevent the spread of misinformation or rumors.
Furthermore, fostering an open dialogue can bridge the gap between the management and the employee perspectives, expectations, and concerns.
If managers and executives do not know what the next steps will be, they should rather communicate that than to just stay silent and create more uncertainty for their employees.
Including employees in the conversation about change can also be beneficial - if it is possible. This can involve seeking their input, addressing their concerns, and reassuring them about their value and role in the company. Otherwise, people just feel like a pawn in the play.
Effective leadership plays a critical role in steering an organization through periods of restructuring. Leaders can guide their teams through the change, inspire confidence, and have a stronger chance to facilitate resilience among their employees and peers.
They could plan for a support structure to help employees take up new roles and responsibilities during the restructuring, clarify what each employee's new job will entail. They can also encourage employees to take advantage of training and development opportunities that can help them prepare for new positions.
Leaders can also offer support and resources, such as counseling services, career coaching, and other activities, to employees who may experience stress as a result of the company's restructuring efforts.
Other than that, leaders could be supportive of their team by inspiring trust and hope - "we can do this" - and demonstrating a clear vision for the future and showing empathy.
Furthermore, even if vulnerability is often looked at as weakness, it is, in fact, a strength and sign of good leadership.
In the face of corporate restructuring, embracing unpredictability becomes a powerful strategy. It's acknowledging the uncertainty as a threat and as an opportunity for growth. Instead of fixating on the aspects beyond control, employees can focus on their responses to the change, crafting a resilient melody in the face of upheaval.
During restructuring, it's vital for leaders to be fair and consistent. Decisions about layoffs or job changes should be based on objective criteria, such as performance metrics. They should consider long-term objectives and anticipated results while making restructuring decisions.
Furthermore, leaders should foster an "acknowledging" culture. Despite restructuring being a lengthy process, it's crucial to celebrate small wins along the way. This can help maintain a sense of community and keep employees' engagement and morale high.
Restructuring is not an easy process, not for the employees nor for the people making the decisions. They need to honor the past, see what has worked and what will still work and what not to make sure the company is future-proof.
Resilience, the ability to adapt to adversity or significant stressors, is a crucial trait for navigating company restructuring. It involves the capacity to bounce back from difficult experiences and adapt to new circumstances. For example, practicing together a mindset of continuous learning can make a difference, while acknowledging that each individual will evolve at different speeds which will require agility. This involves viewing the restructuring process as an opportunity for growth and learning, rather than a threat.
Having a strong support system, both within and outside the workplace, enhances resilience. This could include mentors, colleagues, friends, or family members who provide emotional support.
Another influential aspect that can help to build resilience is practicing self-care. This involves, for example, setting boundaries, prioritizing personal needs, and ensuring a healthy work-life balance. Taking a break, saying no to social obligations or events and setting boundaries also go hand in hand with self-care.
Resilience is a very personal process which requires regular check-ins and prioritizing self-care.
In conclusion, successfully navigating company restructuring presents challenges, yet it can also serve as an opportunity. Starting by being open to unpredictability, practicing self-care, fostering open communication, and leveraging strong leadership are key strategies that enable employees and executive teams to navigate these changes effectively, emerging stronger on the other side.