621: How to Approach a Reorg, with Claire Hughes Johnson

47 snips

Mar 13, 2023

Claire Hughes Johnson, former COO of Stripe and a seasoned leader with a decade at Google, shares valuable insights on leading reorganizations. She explains that reorganizations can signal growth, not just problems, and highlights triggers like misaligned structures and talent issues. The importance of acting swiftly is underscored—don’t let ice cream melt! Claire discusses the need for strategic alignment and effective communication, while also advocating for accountability in leadership. She emphasizes the shift from management to visionary leadership during change.

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INSIGHT

Reorgs: Double-Edged Sword

Reorganizations are often seen as problematic, but they can be signs of dynamism and success.
Poorly executed reorgs can become burdens, highlighting the importance of thoughtful planning and communication.

ADVICE

Structure-Strategy Alignment

Analyze if your team structure aligns with your strategy, especially after strategic shifts like new products or markets.
Consider if leadership attention is properly allocated, avoiding overemphasis on one area at the expense of future growth.

ADVICE

Talent Gaps and Restructuring

When a talent gap arises, view it as an opportunity to reassess your organizational structure.
Decide whether to backfill and maintain the current structure or use the change to better align with your strategy.

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Claire Hughes Johnson: Scaling People

Claire Hughes Johnson is a corporate officer and advisor for Stripe, a global technology company that builds economic infrastructure for the internet. She previously served as Stripe’s Chief Operating Officer, helping the company grow from fewer than 200 employees to more than 8,000.

Prior to Stripe, Claire spent 10 years at Google leading various business teams, including overseeing aspects of Gmail, Google Apps, and consumer operations. She is a board member at Hallmark Cards, The Atlantic, Ameresco, and HubSpot. Claire also serves as a trustee and the current board president of Milton Academy. She is the author of Scaling People: Tactics for Management and Company Building*.

You are charged with leading a reorg, but do you know the mindset, actions, and steps to take? In this conversation, Claire and I explore some of the key lessons she’s discovered as an executive leader in a quickly growing enterprise. We discuss the key triggers for a reorg, the three phases of reorganization, and common pitfalls leaders should avoid.

Key Points

Reorganizations or restructurings and often seen as a sign of a problem, but that’s not always the case.
Why reorganize? Two triggers: (1) your team structure doesn’t match your strategy and/or (2) you have a talent issue.
While there are times to go slower, the bias should be to move with haste. Don’t leave ice cream on the counter for too long.
Be very cautious about creating structure around a single individual.

Three phases of a reorg:

Phase 0: Decide whether you need a reorg and determine your new structure.
Phase 1: Get buy-in from the key people who need to be involved.
Phase 2: Create a communications plan and inform all of those affected.

Resources Mentioned

Scaling People: Tactics for Management and Company Building* by Claire Hughes Johnson
Transitions* by William Bridges

Interview Notes

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