In today’s fast-paced professional landscape, the constant demand for efficiency and automation prompts organizations to frequently overhaul their operational structures. Unlike the past, where organizational redesigns occurred once a decade, they now happen every few months to keep up with technological advancements and the rapid pace of change. Amidst these changes, employees bear the brunt of the aftermath, striving to maintain performance standards.
A recent study revealed that 60% of organizations met their employee performance targets, while a staggering 90% achieved their cost-cutting goals. Although not surprising, these findings underscore the pivotal role leaders play in supporting their teams. In my own research, conducted two decades ago and still relevant today, I focused on how leader behaviors impact employee and team confidence, influencing overall performance positively.
The study, spanning six months, highlighted that leaders significantly contribute to improved employee confidence and performance by effectively communicating, engaging, and developing their direct reports. This underscores the enduring importance of leadership qualities in driving positive outcomes, a truth that holds even today.
Despite advancements, there persists a gap between employee performance and the emotional toll they endure versus cost-cutting outcomes. As leaders and HR professionals embark on organizational redesigns, it’s crucial to consider various employee experience tactics.
ASSESSMENT & DESIGN
A mere 13% of organizations prioritize the assessment and design stages of redesign, and this scarcity directly stems from the challenge of defining clear workflows and operational methods that affect employee performance. Consequently, organizations often realize they’ve assigned employees to roles unsuitable for them or failed to establish the necessary processes for collaborative work. This directly influences morale and overall employee performance.
To address this, it’s crucial to map core work activities to the workflow of a business unit, concentrating on the activities themselves rather than the individuals performing them. This shift from focusing on “who” to “what” facilitates open discussions and sheds light on potential redundancies, gaps, and barriers to employee performance caused by skill or resource limitations.
CHANGE MANAGEMENT
On the other hand, poorly executed reorganizations can lead to a cascade of issues, including heightened uncertainty, job insecurity, and a decline in morale. Drastic changes in job roles, potential layoffs, or unclear communication regarding the reasons behind the restructuring contribute significantly to employee dissatisfaction.
Effective communication is paramount throughout the restructuring process. When employees are well-informed about the reasons for the changes, the impact on their roles, and the overall vision of the organization, they are more likely to maintain or regain morale.
In addition to communication, organizations should consider providing training opportunities that directly align with the new roles and the envisioned future of the organization. Investing in employee skills establishes a solid foundation for current and future performance. Furthermore, implementing information structures can assist employees by providing access to the knowledge necessary for effective job performance. This collaborative approach to knowledge sharing fosters a culture of continuous improvement and innovation within the organization.
MONITORING SUCCESS
While many organizations gauge redesign success primarily through financial measures, they often overlook crucial outcomes related to employee performance, engagement, and turnover during transitions. Relying solely on financial indicators can be misleading, as results may be influenced by external factors like industry shifts or customer behaviors unrelated to the organizational changes. Additionally, financial outcomes serve as lag indicators, meaning real-time financial results might not promptly reflect the effectiveness of a design.
To enhance the evaluation of redesign effectiveness, organizations should consider incorporating employee performance measures. This involves leveraging existing performance metrics such as turnover rates, metrics already linked to performance evaluations, paid time off utilization, and interim measures derived from employee surveys and collaboration assessments. This broader perspective provides a more comprehensive understanding of the impact of redesign efforts on both financial and human-centric aspects.
The rapid evolution of technology is continually driving organizational change. This frequently leads to reorganizations aimed at enhancing efficiency and transparency. While this is a valid strategy, it’s crucial to recognize that the employees directly bear the impact of implementing new processes. Leaders and HR professionals should reassess their approach to evaluating, managing, and monitoring the success of such redesigns. Prioritizing employee morale and performance in these assessments ensures sustained engagement and consistent delivery to expectations.
