Your reaction to organizational restructuring ..

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This may be read as a continuation of the article- When an organizational realignment gets dirty ..

If you get to learn about organizational re-alignment or some kind of re structuring in your company, it’s a good news and a bad news. Good news for those who are a part of the story and bad news for those who are going to be impacted. It may or may not be a good story for the organization but well its normally a well thought out step with an eye on the future so in the long run its good for the organization (most of the time).

As an when you get to learn of an impending re structuring – you need to plan your career moves considering what exactly is your role and what you intend to do in future. Let me put one thing clear – while any decision on changes and restructuring etc. is normally kept under wraps for a long time – some rumors start doing the round at lunch tables , coffee corners etc. Normally , if you approach the HR or your boss to check on the plans , every one is going to reassure you that every thing is alright – and well one fine day you won’t even realize that you have been hit.

What all could a re-alignment mean ?

Productivity Related Realignment:

  • Creation of shared services for some functions – ex. IT, HR , Finance Operations, Procurement etc.
  • Automation of Business Processes
  • Outsourcing of non core activities – Ex. Facilities, Maintenance, Technical , IT

Market Related Realignment:

  • Integration of Sales Teams
  • Common sales team to handle multiple product , geographies
  • Frontline marketing activity getting out sourced.

When CxO Level guys face the heat ?

  • Common leadership for multiple businesses.
  • Change in reporting structures. Example: For Business Unit A, and Business Unit B, there are two CEOs. One fine day the organization sees that need to combine the two under a single leadership – one CEO will need to bow out (if there are no other opportunities in the organization.)

Normally strategy, product development, R & D are not tampered with as they are responsible for creating future and long term value for the organization. In fact these teams are relatively small so they don’t see much impact unless an organization is resorting to some drastic job cut out of compulsion for survival rather than any business focus.

The above list of situations and their possible impacts can give you an ideas if you can be impacted in any restructuring scenario.

Suggestions for you:

  • If you are a part of the team that’s working on change initiatives, re structuring, shared services , new process implementation – stick on, the overall exercise may have great learning’s for you. Possibly this is the best time to observe change, its impact on people and the business.
  • If you are a part of any operations team – Ex. HR, Quality, Finance, Sales – stay on your alert. Even if you are an indispensable and excellent resource today, you may never be sure what the future beholds for you. Start looking out.
  • Keep a watch on rumors, signs, grapevine discussions etc. Keep a watch on new projects that are related to productivity, process integration etc. Try and get a role in the new projects if possible. That could one way to ensure that you have a future role.
  • Normally, if one gets to hear any rumor or information on impending changes – there is no need to panic, these decisions normally take a long time to be finalized, and then implementation takes its own time. So from the day that an organization decides on any such initiative and the day when its announced – normally takes about 6 Month to 1 year in most cases. Post announcement – if there is a bad news for you, you get 3 – 6 Months to exit.
  • If you are on the hit list – i.e on the exit route – don’t panic. Relax and plan your next move. Look at the industry and evaluate the opportunities.
  • If you are at a senior level, HODs, CxO – I feel , you already would have got a hint of your future and would already be planning your move or for your new role in the new structure.

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Praveen is the Founder & Principal Consultant of KHEdge, a boutique HR & Business Process Advisory firm. Over last 15 years he has advised & worked with promoters, founders, business leaders, HR leaders in areas of - Business Strategy, HR Strategy, Organisation Design etc.

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