The Hidden Agenda In Reorganizations

In this lesson, we discuss the hidden considerations that can shape company reorganizations beyond their stated business purpose. While reorgs are often triggered by legitimate changes such as entering a new market, launching a project, integrating an acquisition, or responding to a leader’s departure, senior leaders may also use them as an opportunity to address promotions, retention, performance, and leadership development at the same time.

• Reorgs often serve multiple objectives: Once the business need for a reorganization is established, leaders may also consider who needs greater scope, which high performers they want to retain, and where different employees should sit within the new structure.
• Retention and performance influence the design: Leaders may use a reorg to give valued employees more attractive opportunities while structuring changes so that the potential departure of lower-priority employees is less disruptive.
• Leadership changes can create cascading reorgs: When a senior leader leaves or moves roles, entire teams may need to be reassigned, sometimes placing teams under unexpected leaders or using the transition as an opportunity to stretch someone into a broader leadership role.

Original podcast link: https://www.youtube.com/watch?v=6WaeGfLnRvc&t=24s