Reorganisations, restructurings and other major changes

The importance of planning and communication

Planning and communication are critical for any reorganisation. Getting top management involved in planning and executing any major changes can improve your chances of success.

Planning for any restructuring will help you ensure that changes happen in the way you want them to and that costs are identified in advance and kept under control:

• Plan well ahead. Set flexible priorities and change them with your circumstances.
• Assess any risks to the success of the change and to your business. See our guide on managing risk.
• Draw an organisational chart to understand existing processes, workflows and lines of authority, and draft another organisational chart for your new business structure.
• Develop a vision of how the change will put the company in a better competitive position to achieve its business objectives - communicating this vision can be a great motivator for your staff.
• Set objectives that will help you measure the success of the change.
• Plan resources and schedule timing for the change.
• Incorporate your objectives into a restructuring plan and distribute it among senior management.
• Plan how you are going to communicate the change to your employees - it demonstrates commitment if the managing director or chief executive talks personally to employees.

Sustained communications are vital. You should meet managers and employees regularly to explain the reasons for the change, how it will be carried out and how it will affect them. Combat unfounded rumours by tackling them head on. Make sure that managers operate an 'open door' policy to any employees who may have questions. See the page in this guide on managing people.

You may also need to take account of the Information and Consultation of Employees (ICE) Regulations, which can apply to businesses with 50 or more employees. Under these regulations, and where you already have an agreement in place, employees can request a change to the way you inform or consult them about major issues affecting the organisation. If no agreement currently exists, employees can request that one is drawn up, subject to certain conditions.

You can find information on the ICE Regulations at the Department for Business, Innovation & Skills (BIS) website - Opens in a new window.

It is important to talk to suppliers, partners and customers to keep them informed of any changes that could affect them. Try to give this information as far ahead as possible.

Subjects covered in this guide

• Introduction
• Reasons for changing the way your business is organised
• Different business structures: by function and area
• Different business structures: by product and project
• The importance of planning and communication
• Managing people
• Implementing change
• Systems for delivering change
• Financial considerations
• Special considerations for change
• Here's how reorganising workspace increased our options for growth

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