Why Restructure Fail?

Nike, Disney, Nissan, Expedia, and many more big giants are going through an important change in their management. These changes may help in their business in one or the other way however, when we think from an employee point of view then they are detrimental.

Why would leadership shakeups and redesign happen? The reason would be the nonperformance, stress, uncertainty, disengagement, decrease in productivity of the company, losing company culture, and many more.

With more than 60% of the employees are already looking for a job this year as per the research. Also, 21% of the employee think that quality leader on the top management is the significant reason for employee retention. $2.7 million is the expense of the organization every day to find new talents.

The reason why Restructure fail is we lack in aligning the culture of the employees and company core value. The leaders try to manage all other aspects of an organization with less focus on understanding the culture of the organization. The culture of an organization is dynamic and, it is a breathing unit that will change in every situation. Focus on the culture should be equal as we focus on other aspects of the organization.

Culture should be the glue that holds on to the performance and productivity of an organization than a risk factor to reduce the outcome during the leadership change. “Leadership can demonstrate a commitment to organizational culture and climate by reinforcing company values and recognizing those who activate it across the organization,” says Baumgartner. It is the leader’s responsibility to understand what is the culture of the company before taking in charge and try to find out ways to understand how the functioning of the employee is and understand the major contributors etc. In simple words, the leader should understand listen to the employee before taking action. 

The most powerful and successful way to overcome cultural alignment is recognition and promotions. The research indicates that the company which is involved in continuous recognition and promotion is easier to handle as the employees are well aware of what is required to the company. Make the employee feel their importance and how they add value to the organization, stopping by the employee’s desk and appreciating it would add value to the company. 82% of the employees fell they are less recognized and appreciated in the organization. This is the third factor an employee considers to decide to change or stick in an organization.

Change in an organizational structure is common this would be happening throughout the year. Aligning the core value and adopting the culture with more recognition and appreciation would solve this in a better way.

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