At Work with The Ready 31. Why Reorgs Don't Work
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Jul 28, 2025 Reorganization is rampant in the corporate world, yet it rarely leads to positive change. The hosts delve into why many reorgs fail, highlighting the emotional toll on employees and the erosion of trust. They challenge the reactive nature of these restructures and suggest more thoughtful approaches to organizational change. The impact of AI on workplace structures is also explored, calling for adaptations in traditional models. Ultimately, listeners are encouraged to favor smaller, more strategic changes over disruptive overhauls.
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Reorgs: Quick Fix, Rare Success
- Reorgs often serve as a quick, visible action to satisfy boards and investors, not as effective problem-solvers.
- Only about 16% of reorgs deliver the expected value, revealing their limited actual impact.
Change Work Before Structure
- Always change work practices first before moving people or redrawing structures.
- Structure should be the final step after adapting workflows and teams have adjusted.
80% Layoff Chaos Example
- A team was cut by 80% with no plan for redistributing work or hiring replacements.
- This caused major workflow breakdowns and poor documentation access, worsening team performance.
