In today’s fast-moving world, organisational restructures have become increasingly common as businesses grow, transform or downsize. Making changes to roles, teams or reporting lines can be a necessary step for the future of the business – but to be successful, this shouldn’t be just about updating organisation charts, but about leading people through change and uncertainty.
At McLean HR we have extensive experience working with a range of companies and sectors on restructure activities and we’ve learnt a lot along the way about what makes a restructure successful. This blog shares our insights, and recommendations for important steps to consider when planning a restructure.
Why Restructures Fail
Many restructures are designed with positive business outcomes in mind, however they can fall short when people considerations are overlooked or not planned for well enough. Common reasons we see for restructures not landing well include:
- Poor communication leading to uncertainty and rumours
- Lack of clarity around why the change is needed
- Inconsistent leadership messaging
- Failure to comply with employment legislation and consultation requirements
- Insufficient support for employees and managers
- Lack of upfront careful planning
Employees are often more resilient to change than leaders expect, but what creates anxiety is not necessarily the change itself, but uncertainty around the change.
Start with a Clear Business Case
Before beginning any restructuring process, organisations should prepare a clear business rationale for why the change is needed. Leaders should be able to answer:
- Why is this restructure necessary?
- What business challenges are we solving?
- What outcomes are we aiming to achieve?
- What does success look like and how will it be measured?
A clear and robust business case keeps you focused on what the organisation needs, and provides the key points to communicate with your employees, stakeholders and employee representatives (if required). When leaders can confidently explain the “why,” employees are more likely to understand and engage with the process.
Understand the Legal Process
Depending on the nature of the change, there may be an obligation to follow a consultation process if the change you are proposing involves changes to terms and conditions, or potential redundancies.
A consultation process must be meaningful, so it’s important you plan for this process to allow those impacted the opportunity to feedback, challenge or raise questions around your proposal before any final decisions are made. The length and type of consultation required can differ depending on the number of those impacted.
An individual consultation process may be required and whilst there is no set timeframe, this must be meaningful, so ensure you plan well ahead for when and how you will run the consultation process. A good best practice start is to plan for around 30 days for an individual consultation process, but you may be able to conclude sooner than this.
A collective consultation process is required when you are proposing to make 20 or more roles redundant at the same establishment within a 90 day period. This process will last for either 30 or 45 days depending on the number of employees impacted, and it is a process where you collectively consult with representatives of the employee group. Your organisation may already have representatives in place such as a Trade Union or Employee Consultative Group, but if not you will need to arrange a representative election process before beginning your consultation.
It’s important to take time in advance to plan for any consultation process you may need to run, with support from HR. Managed well, a consultation process can be a useful way of testing your proposals and finding out what you haven’t considered, and helping to build trust and confidence with your employees.
Prioritise Early and Transparent Communication
Communication is often the single most important factor in any restructure. Employees want timely, honest, and consistent information. While leaders may not have all the answers immediately, withholding information or not communicating frequently enough can allow speculation and mistrust to form.
We would recommend building a clear communication plan throughout the process, thinking about methods of communication, regular touch points and clear messaging. Here are some things to consider in your communication plan:
- Communicating the rationale for change as early as possible
- Explaining what is known and acknowledging what is still being considered
- Communicating with clarity, ensuring the right level of detail is provided at the right time
- Providing regular updates throughout the process to avoid communication gaps, even if there is limited new information
- Creating opportunities for employees to ask questions – and making sure these are answered in a timely manner
- Ensuring leaders and managers deliver consistent messages
Equip Managers to Lead Through Change
Managers often become the face of a restructure for their teams and play a critical role in taking employees through the changes. Employees naturally turn to their direct managers for guidance, reassurance, and information, and they are also the first to receive questions, concerns, and emotional reactions to the change.
It’s important to think about how you will equip managers with the right information and support to be able to effectively lead their teams through the process. Early engagement in the process shows you recognise and respect the important role they will play, and ensuring they know what is expected from them and when are key starting points.
You should consider providing your managers with the below to help them prepare:
- Clear briefing materials and background information they may need to explain the changes
- Guidance on handling difficult conversations or emotional reactions
- Training on leading and communicating through change
- Support for managing employee wellbeing concerns
- Access to HR support when needed
- Time – to allow them to prepare and reflect on how they equip themselves to support their employees through the change
When managers are equipped with the right tools, have timely information, practical resources and feel confident, employees are more likely to trust the process.
Support Employees Through Transition
A well-managed restructure goes beyond just the organisational change – it places equal emphasis on supporting people through the transition. Providing practical, emotional support helps employees navigate uncertainty, maintains engagement, and reinforces trust in the organisation. You should consider what support you can put in place for those who are impacted, as well as for those who will remain after the process.
Some tools and information you could consider providing to support employees who are impacted could include:
- Career transition and outplacement services
- CV, interview and job searching guidance and information
- Employee assistance programmes (EAPs)
- Financial wellbeing guidance and resources
You could also consider putting these supportive initiatives in place for those who remain after the change:
- Regular, transparent communication from leaders
- Ongoing wellbeing resources and mental health support
- Team rebuilding initiatives
- Career development and future planning conversations
- Recognition of the impact of change and continued investment in employee development
By supporting your employees in this way, your organisation can build trust, strengthen engagement, protect your employer reputation, and help employees adapt successfully to the changes you are trying to implement.
Focus on the Future
One of the most common mistakes organisations make is treating the restructure as complete once organisational changes are announced. The real work often begins afterwards. Successfully embedding the new structure requires ongoing leadership, clear direction, and continued engagement.
Once decisions have been communicated, leaders should focus on helping employees transition into the future by:
- Clarifying new roles, responsibilities and new ways of working
- Aligning teams around future goals
- Re-establishing priorities and performance expectations
- Celebrating progress and early wins
- Monitoring employee engagement, wellbeing, and morale
Employees need to understand not only what has changed, but what the future looks like and how they contribute to it. Providing clarity about the future and a clear sense of purpose helps people adapt more quickly and remain engaged throughout the transition.
And don’t forget the planning
Taking the time to plan thoroughly provides the foundation for a fair, consistent, and well-managed process. A structured approach enables leaders to make informed decisions, anticipate challenges, communicate effectively, and provide the right support to employees throughout the change.
A well-planned restructure considers not only the future organisational design, but also the practical steps required to move from the current state to the future state.
Careful planning ensures:
- Clear governance and decision-making structures are established
- Key activities, milestones, dependencies, and decision points are mapped out
- The sequencing of activities is carefully considered to support the change
- Sufficient time is allocated for consultation, communication, implementation, and employee support
- Risks, impacts, and dependencies are identified and managed
- Communication and engagement are planned from the outset
- Support mechanisms are prepared in advance
A successful restructure is built on thoughtful planning. The more time invested in preparation, the better equipped the organisation will be to manage change, support its people, and achieve its intended outcomes.
Final Thoughts
In summary, here is our key checklist for leaders preparing for a restructure:
✓ Clear and robust business case
✓ Communication and engagement strategy
✓ Comprehensive consultation plan (if required)
✓ Manager readiness and support
✓ Employee support options
✓ Detailed implementation plan and timeline
✓ Transition and embedding plan
If you’re planning a restructure, no matter how big or small, we can help. Get in touch today and our expert team can work with you to plan your restructure in the most effective way.
