Communicate the rationale in order to avoid employee cynicism and skepticism. A lack of communication and poor change management are the main perils. Try to involve other people if not in the designing process, at least in the implementation, proposes the management.about.com website.
Typical causes to reorganize
1. Key person has left: Contrary to textbooks, organization charts are usually built around certain a person, not their position. Without this person, it is often possible to question the existing structure.
2. Work is not being done: There are overlapping roles, inefficiency and operational problems.
3. New opportunity: Perhaps the current design of the company is not suitable for exanding into a new market or product.
Guidelines for successful reorganization start with strategy
Sometimes the problems can be solved by less disruptive ways, but when reorganization is need, start with a strategy. What are the goals of the process? New organization chart should be drawn up after you have coined your strategy, not before. You also need to develop criteria by which you will evaluate various possible alternatives of the future design of the company. Evaluate several alternatives including no change.
Lead the change
After the final design has been tested, you should know how the new business processes will work in the new settings. You should have prepared action plans to mitigate the possible trade-offs and risks of change. Involve the team in the implementation of the new structure. Communicate to the stakeholders and explain why you didn’t consider other alternatives. Acknowledge that there is no perfect solution and that you chose to pick the lesser of evils, or the best solution.
For more tips on change management see:
Project managers must be prepared for constant change