Restructures

In a recent survey DLP were asked us to cover Restructures. Below are our top tips for managing Organisational Change.

Plan: Have your end goal in mind

What are you trying to achieve from the Restructure?

Managers need to clearly define thebusinessgroundsforthechange.It is wise to carefully plan the upcoming change and understand the reasons why you are looking to make a change.

Managers should have a clear idea of the new structure and what they are looking to achieve. Without this clear vision, it will prove impossible to discuss with employees.

The change could be happening because of various reasons but could include;

  • Review of internal policies and procedures
  • Review of internal teams/structures
  • Changes in global markets
  • Financial pressures

Communicate to staff the ‘why’ as well as the ‘what’

Communication at every stage is key.

In the absence of information, people will fill the vacuum with rumours and speculation.

Employees will need to understand why the restructuring is taking place as well as the process you plan to follow. This is why it is crucial that you have followed step 1 before you communicate the change to employees.

Commence the restructure by communicating the plans to all staff before moving on to consulting with staff individually.

Communication is crucial with any restructure or change management process. Change can be traumatic for employees and they just want to be told what is happening. This is when a restructure can be won or lost depending on how communication is managed.

Consultation/engagement with employees

Ultimately, consultation involves managers actively taking account of the views of employees before making a decision.

If redundancies are planned, consultation is a legal requirement and the time periods differ depending on how many people are affected.

If you do not consult employees in a redundancy situation, any redundancies you make will almost certainly be unfair and you could be taken to an employment tribunal.

You must follow ‘collective consultation’ rules if you’re making 20 or more employees redundant within any 90-day period at a single establishment. Please contact us for more details on collective consultation.

There are no set rules to follow if there are fewer than 20 redundancies planned, but it is good practice to fully consult employees and their representatives. An employment tribunal could decide that you’ve dismissed your staff unfairly if you do not.

Tackle difficult decisions

In any organisational restructure, there will be obstacles to success. These could be internal politics, previous restructures and precedents set.

Communication again is key with this and Managers need to ensure that clear and transparent processes are being followed. Managers will need to keep existing staff motivated and engaged during this period of time to ensure that the future culture of the business can thrive.

Celebrate success

If the restructure goes on over a prolonged period, it is important to acknowledge milestones and celebrate success along the way. Savings achieved, people successfully placed in new jobs, customer satisfaction ratings climbing, efficiencies achieved; all of these things can be celebrated. It will remind people why the restructure was necessary.

Remember: if the vision and goals are clearly identified, you are much more likely to achieve them. With clarity and dedication, the new structure will be up and running more quickly, saving costs, improving efficiency and delivering better service. The organisation will have retained the right people for the future. The risk of expensive, time-consuming employment tribunals will be significantly reduced. All in all, you’ll be left with a happier, healthier and more promising business.

Should you have any questions feel free to reach out to our help line. DLP advisers are available to answer any questions you may have—24 hours a day—at 0330 400 4454.

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