Whether it is company-wide or affecting the IT department alone, reorganizations are a fundamental step in managing growth and remaining flexible in today’s competitive marketplace. A successful reorganization can save money and offer new career opportunities for employees. If mismanaged, a reorganization can cause mistrust, misalignment in priorities, and damage to the bottom line. With the right strategy in place, IT can be prepared for the complications that arise from a personnel overhaul and be confident in realizing the benefits.
What Is a Reorganization?
Reorganizations are characterized by a change in organizational structure, the creation or elimination of departments, a reallocation of responsibilities, and the reassignment or repurposing of employees. For example, an IT department may need to transition to a matrix structure in order to improve flexibility, while if it is considering major growth, a more functional strategy might be more appropriate.
Why Reorganizations Occur
A reorganization is typically driven by a business or operational strategy change, but occasionally there are reasons for IT to call for its own independent restructure. If the following issues are present in the organization, many executives will begin to consider whether or not restructuring would be an effective solution.
How Reorganizations Increase Profitability
A reorganization can streamline operations by reducing headcount or repurposing staffing resources to projects with strategic importance. Important deliverables will be prioritized correctly and implemented to ensure external client satisfaction and successful implementation of internal initiatives.
Recommendations
Take the following six steps to manage a successful reorganization in the IT department:
1. Ensure a concrete strategy is in place for the reorganization before making it public knowledge. If the reorganization is IT-driven, ensure the benefits are specific and measurable, and exercise scenario planning to understand in advance how to deal with potential problems. In a business-driven reorganization, IT must also be prepared for associated technical challenges.
2. Develop a technical strategy to help IT deal with the change. It is important for the entire IT department to feel involved in the process and invested in positive results. Clearly articulate the importance of IT in a company-wide reorganization and identify a specific action plan going forward. For example, in a company-wide restructure, IT must be prepared to update and adapt the company’s active directory.
3. Inform affected employees individually of the change before the announcement is made public. Dislocated people tend to feel anxious or confused about their position in the organization. A meeting gives the IT manager the opportunity to communicate the reasons behind the restructure and to distribute a written copy of the revised job description. It also acts as a forum for employees to voice their questions and concerns in a non-threatening environment.
4. Communicate goals for the reorganization and broadcast success metrics. Cynicism is fed if employees do not see specific benefits from structural change. Publicizing concrete objectives specific to the IT department and broadcasting its accomplishments company-wide will encourage employees to do their part to ensure a successful restructure. If deteriorating morale is an issue that the organizational change is meant to address, perform an employee satisfaction survey before and after the restructure and, assuming the initiative yields positive results, announce the improvement in scores.
5. Familiarize any new members of the IT department with their co-workers. Department-wide introductions and job shadowing formalizes the change to the employees, helps people associate faces with names. Most importantly, it encourages communication between new hires and veteran employees.
6. Provide ongoing support to affected employees. The IT manager should meet privately with all staff affected by the change over their first few months to discuss any on-boarding questions or concerns they might have. Repurposed employees should have access to all training and education necessary for them to successfully transition into their new roles.
Bottom Line
Reorganizations are inevitable in companies that want to stay competitive in today’s dynamic business environment. The IT department must understand and implement the characteristics of a successful reorganization in order to seamlessly transition with the demands of growth and change.
