A restructuring that leads to an increase in productivity, this is where Sphere-Work guides you!

According to several studies, less than half of restructurings achieve their goals, even though they are often necessary to keep or get productivity high. However, when properly implemented, restructurings produce good results as a function of productivity. Sphere-Work is happy to support you in this with its comprehensive expertise.

How does this topic impact your productivity?

Why is it so important to get restructuring right?

Productivity has several aspects that can give rise to restructuring:

The market is changing, or we want to improve our competitive position: rationalisation, cost cutting, downsizing, rightsizing, out/insourcing ...;
Improve efficiency of processes and execution;
Adjustments to the organisation, to management levels ...;
Automations, new technology ... that have an impact on the tasks to be performed, requiring new skills ...;
Takeovers or mergers;
...

According to several studies*, less than half of restructurings achieve their goals. This is partly because restructuring is usually done based on an oversimplified approach and an underestimation of the human factor: restructuring often has an impact on political balances, people involved have a lot of uncertainties and questions that often remain very implicit but have an impact ...

Restructuring usually has a very bad connotation: employees are frightened by it and managers do not achieve the goals. So often one restructuring follows the next.

However, restructurings are often necessary to keep or get productivity high. They can - when done properly - produce good results. So, the what & how of restructuring is crucial.

* a meta-study published in 'Performance Improvement' of 49 studies, covering 43.426 companies and organisations

Our change approach

What is our solution?

Beckhard and Harris have developed a 'change formula' that is a good capstone for our approach. We link our method to this, incorporating the latest insights on the effectiveness of change techniques, e.g. based on neuroscience:

Change = [OxDxM] > K

C = Change

O = Dissatisfaction with the status quo

Is the issue clear to everyone? Do people feel it is relevant to them? For example, if it is only a problem for shareholders, why should I, employee, bother?
Is the urgency also clear? Is there momentum or can we build it?
Are my issues also included, or are they ignored?
Are there any other taboos that should not be spoken about even though, in people's perception, they are part of the problem?
(Visual) storytelling will be important here, so that the problem also sticks, also on an emotional level.

D = To what extent do I want to achieve the proposed goal of change?

Vision: what is its purpose? Does it appeal to me, rationally or as a flesh-and-blood person? Do I want to belong to it? Is this more than just financial? Why would I want this?
Belief in the solution: will this change really solve the problem or is this just another attempt that might not achieve much? Why would this work (now)? Has the problem been structurally and systemically analysed, or do we give the impression of (too) quickly reaching for superficial solutions?
Commitment: have I been able to provide my input?
Belief in ability: can we do this? Do we have the people, the skills ... for it? Or the discipline? Or will the attention of top management fade back a bit before it is even properly implemented? ...
Believe in aligning: is everyone going to do the effort the same way, is everyone going to work towards the same goal?

M = The manner of change (minimal risks and disruption)

How can we eliminate anxiety levels as much as possible? The brain blocks on a feared loss of job, status, certainty or predictability of the future, sense of control and autonomy, sense of belonging and, finally, fairness. It is also important to consider past (change) experiences.
How can a sense of support be given in this change: is there room for dialogue and doubts, is support offered to deal positively with uncertainties, is there cooperation within and outside the team ...
The process of change: providing some quick results to support belief, addressing issues that are alive and visible in the belly of the organisation, providing structure and clarity during implementation, the way to involve middle management and let them play their role as 'connector'.
The perceived fairness of the change: of the change process itself (what if I lose my job, am no longer allowed to do certain tasks ...), of certain taboos that would remain intact while I must give up mine, etc.
The role of leadership in change: not only at the start, but also throughout the process. This role is about exuding trustworthiness: competence, transparency, reliability, empathising with colleagues. It is also about consistency: sustained commitment, consistency in decision-making processes and priorities, exemplary behaviour.
Aligning incentive processes & appreciation, removing conflicting messages ...
Investing in 'the ability': conscious retention policies towards people with critical knowledge/experience/network, building skills we need ...

K = Cost of change for the individual

The higher the cost/risk to the individuals involved, the better the above factors need to be taken care of.

Our 5-step plan

How do we proceed?

We combine our methods with a very clear process. Below we give our general process, knowing that it will always be adapted and detailed based on your specific situation:

Step 1: Clarifying the purpose of the change and building momentum

(Visual) storytelling on the reasons for change;
Determining critical success factors of the restructuring: what do we want to achieve: financial, operational, customers, culture, employees ...;
Working out the design options: possible solutions, how and with whom will they be worked out, how do the different options score on the critical success factors?

Step 2: Stakeholder management

Mapping of stakeholders who can influence the success of the change;
Benefits and risk analysis for the different stakeholders:
What are the risks and opportunities linked to the different options: financial, operational, technical, skills, motivation, customers, timeline ...?
What are these risks and opportunities both during the project and afterwards?
The role different groups need to play in the change to be successful: middle management, top management, change agents ... How will we involve them?
The constructive and timely involvement of social consultation bodies.

Step 3: Guiding the change

Building a change management approach where we integrate company-level best practices & lessons learned and our own expertise:

Identifying issues that block or make change difficult: that could be fear, wrong incentives, group dynamics, etc. and determining how to remove those 'blockers';
Consciously working on the perceived fairness of the whole process;
How to bring and maintain focus, monitor progress;
Retention of critical people and knowledge;
Installing the right incentives;
Generating rapid and visceral progress to nurture belief;
...

Disciplined project planning and execution:

Making top management commitment visible (not just at inception),
Leadership role and their support,
Line manager role and their support,
Communication and information flow,
…

Step 4: Plan-Do-Check-Adjust

Monitoring the process and results: the process, however well prepared, will be a constant process of plan-do-check-adjustment

Step 5: Anchoring the change

Integrating processes and habits in the organisation,
Installing ‘early warnings’ in case we would deviate from our goal,
…

We have specific attention (and a lot of experience) in our approach to the feeling of loss, especially in the case of job loss:

Perception of fairness of the whole process: communication, selection of people, treatment of people ...
Managing and anticipating emotions (whether they remain explicit or implicit): preparing and coaching managers to deal with them.
Focus on the future: both the future of people who might lose their jobs and the future of those who stay.

Experience in coaching teams and managers

We are also experienced in coaching teams and managers so that their team members (including themselves) can better cope with change. In doing so, we focus on:

capitalising on strengths,
focusing energy on what the team can influence,
creating an environment in which team members support each other,
…

Our client cases

What we have achieved for our customer

Complete restructuring of company X (4.000 employees), part of an international group:

Complete and structural revision of all collective agreements relating to remuneration and working conditions;
Reduction of the workforce by 25%;
Integration at group level of different departments (such as Marketing, Sales ...);
'Regretted losses' of talents limited to 5%;
Deep involvement of middle management, with strong focus on collaboration & continuous improvement.
Employee Engagement figure after restructuring the highest of all entities within the group.

Our deliverables

What can you expect from us?

The points below summarise what you can expect from Sphere-Work when you engage us to guide a restructuring within your company:

A structured restructuring process;
Maximising retention of people with critical skills, knowledge or networks;
Minimising risk during a change;
Anchoring the change in the company.

Ready to tackle
your productivity?

We are always open to an informal conversation.

Get in touch

Guidance on restructuring
to ensure productivity gains

How does this topic impact your productivity?