Reorganizations - MAC020

Managing A Career

If you're listening to this podcast in real time, the calendar has just flipped to October. This is often when discussions begin within a company that a reorganization (often shortened to "reorg") might be necessary. Many reorgs take effect as the fiscal year changes for the company and the fiscal calendar for many companies follows the regular calendar. With all of the holiday and vacation time taken in the final months of the year, initial discussions typically start in October.

Let's take a look at the various reasons why a company may decide to reorganize and what sort of personal impact each reorg could have for you.

The first reason for a reorg is a significant change in the business. This could be something like a merger or acquisition or changing market conditions. These reorganizations are focused on streamlining the business and bringing functions that are closely related under a common management structure. This allows for decisions that optimize these functions to be made faster because they can be made at a lower level of management without needing to escalate everything to the executive level.

Another reason that could lead a company to reorganize is when they change their product mix. This could include eliminating an obsolete product or launching a new product. Similar to a merger, these reorgs will often be focused on higher level changes with less impact to the individual teams unless the team is directly involved with the products being changed.

The third condition that could lead to a reorganization is change in executive level personnel. When a new high level executive takes the reigns, they often have their own ideas of how their department will work best. These reorgs are often more disruptive to the management chain because they are changing the fundamental method by which teams are formed. For example, teams could be organized by function or by region or by product line.

Regardless of the fundamental reason for the reorganization, there are several ways that you can use them to your advantage.

The first and most obvious benefit is that if decisions are pushed to lower management chains, you can look for opportunities to either contribute to or possibly even completely own larger decisions than you previously did. Pay attention to the changes going on above you and see which responsibilities your management chain is gaining. Look for new and unexpected challenges and proactively offer solutions.

Another thing to consider is that any time there is chaos, look to see what is falling through the cracks. What processes are lacking an owner? Claiming these overlooked processes can show initiative putting you on a fast track for advancement. For large enough processes, you may even be able to carve out a team, giving a chance to transition from an individual role to a management role. Just be careful to make sure that the process isn't one slated to be eliminated or replaced as part of the new structure.

If you find yourself part of a newly formed team, it's time to establish yourself as a decisive leader. Grasping new responsibilities quickly and leading by example can help you stand out. When your manager is new to the team you can become the trusted confidant gaining prestige within the team.

Lastly, during times of reorganization, look for ways to expand your network. Leverage your former teammates to be introduced to their new management chain. Also, join cross-functional transition teams to be exposed to people across the new organization. And, of course, build relationships with your new team.

Reorganizations bring change an uncertainty, but they also bring opportunities. As I covered in episode 013 - A Little Bit of Luck, luck is when preparation meets opportunity. If you are prepared to take advantage of the change, you can use the opportunity to get ahead.

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