A reorganization, an overhaul of a company’s internal structure, is a major event in a company’s life cycle. There are often many changes for the managers, employees and other stakeholders, and also the way business is done will change. There are several reasons to restructure, but the main reason is to improve business.

Handling a reorganization well is not only crucial for the survival of the business itself, but also for your employees, as they are the driving force behind the company. However, restructuring your business can cause uncertainty, anxiety and confusion among your team members. Here are three ways to help them and yourself through a reorganization.

Know your team

A reorganization can have a significant impact of your employees, especially the ones who were there from the beginning. They have seen the company developing further and further and might have difficulties understanding that business will change.

Moreover, employees might feel uncertain about their position, or it is unclear to them what is going to happen next. In general, people don’t like change- a phenomenon also called the status quo bias, therefore, they need may need a little help to see why this reorganization will help the company improve and grow.

As an good and involved manager, you should know how to approach each of your employees best. Each team member will probably react differently to your announcement, so adapt your approach according to the employee’s characteristics. Some people need a bit more explanation or might react shocked. Give them some space to process what is going on.

State realistic expectations

People have to get used to changes, in particular when it affects a place where they spend 40 hours- or more, per week. You should therefore give your team members- and yourself, the time to adapt to the new rules, way of working and other changes.

Of course, as a manager, your expectations after the reorganization are high- you restructured the business to make it better, right? However, you cannot expect from your employees that they adapt seamlessly and that they perform at the same level or better than before. A reorganization can have an impact on people’s lives and you should give them considerable time to get used to their new working environment.

On the other hand, your team members might expect more sympathy from you, or longer time to get used to the changes, while you want to get back to regular work real quick after the restructuring.

Make sure everyone is on the same page by discussing clearly what you expect from your employees, and let them express their expectations too.

Communicate the consequences clearly

To whom should your Marketing manager report the latest social media results after the reorganization, and will compensation structure change? These are questions that need to be answered clearly, so your employees can get back to work as fast as possible. Communication is key in every organization, especially when things are changing. Communicate clearly what will change, and for whom. Also when it concerns bad news, for example about changing compensation (structure). The earlier your team knows, the faster they can adapt to it.

Things get even more intense when people get fired. You’ll have to deal with two kind of emotions: the people who are fired are angry, while the ‘survivors’ can feel guilty and insecure. They can stay this time, but what is next? Be prepared to address both groups with appropriate messages.

The final goal of a reorganization is to improve your business, whether this is through a merger, acquisition or recapitalization. To discover how these changes impact the value of your business, use the Equidam valuation service. By completing a couple of simple questions about your company – like information about your team and experience and some financial input, you will get a complete financial picture of your company! Use your valuation report as a validation when negotiating with other parties, or use it for internal use for proper value management. Have a look yourself!