4 Strategies to Navigate Corporate Restructurings and Emerge a Stronger Leader
Are you leading your team through a company restructuring? While restructurings can help boost company performance, they often cause stress and anxiety for all those involved. I’ve led teams through corporate restructurings numerous times both as an advisor and an operator. Leading during dramatic company changes is no easy feat. Amidst unrest, remember this: with chaos comes opportunities.
Approach the situation as a strategic opportunity for leadership growth. I share 4 strategies to help you navigate corporate uncertainty, lead your team with confidence, and emerge an even stronger leader.
Instill confidence
Focus on what you can control.
During periods of corporate transition, 60% of organizations experience a significant drop in productivity (HBR).
Restructurings lead to heightened unease among employees. To ensure your team emerges strong and united, it is crucial to instill confidence as you chart a new course. Of paramount importance is acknowledging the emotional impact your team is experiencing. Three recommendations to get you started:
Assess team morale. Meet one-on-one with each team member. Ask about top concerns and how you can be of help. Point people to resources your company provides.
Encourage open communication. In times of change, confusion and misinformation can spread quickly. Empower your team by promoting transparent and open communication channels. Accelerate decision-making processes to ensure employees feel heard and involved.
Seek input. Encourage people to contribute ideas on how the team can adapt and thrive in the new business landscape. Incorporate suggestions into the evolving strategy and spotlight specific individuals’ contributions.
Pro Tip: What I often do in addition to one-on-ones is block office hours on my calendar. This creates a more casual environment for your team members to approach you.
Fortify your own foundation
Making tough decisions, being accountable for execution, and leading others through change is demanding. Leaders keenly feel the weight of these responsibilities.
Your decision-making capabilities and objectivity are needed more than ever. Failing to address your own emotions poses risks to yourself and the business. Two tips to thrive:
Evolve your leadership style to suit unfolding conditions. Refer to my article on leadership styles and actions here.
Seek support. Lean on a trusted advisor who’s been through a similar situation. They can serve as a confidante and guide you through the challenges.
Consider joining a community of practitioners in your field. Engaging peers can provide invaluable support and shared experiences.
Nurture your external relationships
Maintaining strong relationships with customers, suppliers, and partners is critical during times of transition. It’s easy to become inwardly focused. However, the reality is that the impact of change reverberates across your entire business ecosystem, internally and externally. Two key actions:
Be proactive. Communicate changes that affect customer experiences and external partners as early as you can. Transparency builds trust and reinforces relationships.
Involve people. Keep customers informed about modifications that may impact their products, services or experiences. Align with partners on potential impact to operating models. Engage with suppliers to calibrate commitments. Doing so minimizes disruption and increases the likelihood of maintaining your company’s competitive edge.
Innovate
Conventional reasoning may discourage the introduction of new ideas during times of turmoil. However, change presents opportunities for fresh perspectives. When change is already underway during restructuring, executives may be more receptive to new concepts, particularly those that achieve growth paths faster. Smart leaders leverage this dynamic.
McKinsey research shows that top performing companies innovate nearly 2x faster than low performing peers. They generated new products and services by increasing R&D spend, growing innovation teams, and acquiring intellectual property.
Three tactics to spur innovation:
Foster creative ideas and have fun with it! Tensions are high during restructurings. Plan a brainstorming session for your next team meeting. This approach focuses your team on the future and channels energy on problem solving for growth.
Pro tip: Use Ideo’s ideation process. It’s structured, encourages collaboration, and fun!
Delegate actions from brainstorming sessions to team members who are energized by the work. Are there people on your team who are looking to grow their management skills? Valuable ideas require cross-team collaboration and further research for viable options. These follow ups could turn into development opportunities for your team.
Socialize your ideas with customers and company executives. Pressure test ideas against top customer problem areas. Do more due diligence on the most compelling ideas and raise those at your next leadership offsite. These moves signal your ability to stabilize and expand quickly in a crisis.
Restructurings provoke uncertainty and disrupt a company's rhythm. However, if you approach the changes as a strategic challenge you can emerge with new skills, greater confidence, and a reputation as a steadfast leader in times of disarray.
Want to learn more about how to navigate business challenges with strategic, actionable solutions? Read more here about how On Point empowers you to lead and achieve at the highest levels.
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Joselle
joselle@berightonpoint.com