Organizational Restructure Memo

Name

HRM 531

For a business to be successful, it must have a strategic plan and understand when it needs to change to meet the needs of its environment. Businesses often fail to plan appropriately to environmental needs and the changes that may be required because of it. When companies announce restructuring, it is usually due to not meeting financial goals. Organizational restructuring is one of the risky and bold moves a company makes all in the hopes of balancing the financials. A successful and well thought through restructure can set the organization on the path to future success. An organizational restructure requires a vision and flawless execution for it to be successful. When companies react and choose this to be the last option, it can immediately have some significant detrimental consequences with employee morale being at the top.

Implementing the change

Often, companies tend to communicate change so broadly that an average employee may not understand or be able to rationalize the why. A delicate and significant change such as reorganizing may require a tactful approach. The first step with making a change such as this is identifying how the change will affect everyone. Although at times, change may be positive when communicated poorly can signal fear throughout the organization. Leadership needs to remember that changing an organization is like flying a plane- the pilots are the only ones that can see what is going on and when to expect turbulence. If not communicated well or in a timely manner, the passengers in the plane can experience sudden panic and create fear. Executive team should formulate a detailed plan of communication for the turbulence and be prepared to provide support throughout the transition. It is essential at this stage to identify how each role will require changes, not people. Although it is easier to say this and difficult to do because often, it is done in a different fashion. Identifying roles will assist with how the organization will reallocate the tasks and responsibilities to the new roles.

Executing the plan

When initiating an organizational change such as this, an accurate execution plan is vital. According to McKinsey.com, “Any organizational redesign will have a deep and personal impact on employees—it’s likely, after all, to change whom they report to, whom they work with, how work gets done, and even where they work” (para 10). With this in mind, it will be important to have a leadership team who will communicate this change. One of the first steps needs to be communication with individuals who may not have a job anymore or will be relocated into another position. A severance package will be prepared by the HR team to be shared by the leaders of those individuals. Each individual will meet with their direct report along with the HR representative to communicate their packet. Meetings will be set up with those who will directly be impacted. A new org chart will be developed to be shared in the communication townhall meeting. According to McKinsey.com, “Tracking operational, financial, and commercial metrics during a design transition is helpful, as are ‘pulse checks’ on employee reactions in critical parts of the company” (para 21). It is imperative to assure that employee morale does not suffer due to changes being made so frequent ‘check-ins’ will be imperative to a successful transition.

Org chart

Memo

From: Executive Leadership

Sent: Monday, March 10, 2019

Subject: Organizational Realignment

Importance: High

Dear Team members,

As you may have noticed over the past few months, we have been working on several organizational initiatives which included a review of our past performance. Although there were several goals that we wanted to achieve. One of the most important goals was to examine how our teams are organized and their effectiveness. Another essential goal we wanted to accomplish was to see if there is a better structure that can remove some of the roadblocks and will help you get things done. We also wanted to identify areas that needed further investment to minimize or eliminate those roadblocks. This process has taken some time, and with the help of our leaders, we have created a comprehensive plan. Although this work is never easy, we have a good plan for our future. Not only how we are going to be successful as an organization but to also provide you with the direct line of contact so you can continue to do what you do best.

We have reorganized the leadership roles which included four-Division Vice Presidents who had 15-District Managers reporting to them. The new org chart consists of a much better spread of leadership to help us with exceeding our goals. The new org chart will have two-Division Vice Presidents who will have three-Regional Managers reporting to each of them while each regional manager will now have 10-district managers reporting to them.

This change is exciting as it will remove some of the roadblocks to assist you with your positions while providing support for your team. Many questions may still be unanswered, please feel free to reach out to your immediate leadership team and HR representative. All questions, concerns, and ideas are welcomed and we will use them to build a FAQ’s which will be updated daily/weekly basis.

Sincerely,

Your leadership team