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How To Restructure A Team: A Comprehensive Guide

High-performing teams are the heart of any successful organization. Yet, there comes a time when even the strongest groups remaining employees might need to be restructured. This comprehensive guide takes you through the process of team restructuring, ensuring you have all the necessary tools and knowledge to make your transition as smooth as possible.


Restructuring a team is no small task. It requires careful planning, clear communication, and a deep understanding of your team’s dynamics workplace culture. But before we dive into these elements, let’s first understand why an efficient team structure is so vital and how to recognize when a change is needed.

Importance Of An Efficient Team Structure

A well-structured team fuels productivity, promotes collaboration, and fosters a positive work environment. It ensures that everyone knows their roles and responsibilities, thereby minimizing confusion and maximizing efficiency. It encourages open communication and mutual respect among team members, creating a conducive atmosphere for creativity and innovation.

Moreover, an efficient team structure helps in achieving the organizational goals more effectively. It aligns the team’s objectives with the company’s vision, ensuring that every member’s efforts contribute towards the larger goal. Therefore, maintaining an efficient team structure is crucial for the overall success of the workforce in any organization.

Recognizing The Need For Restructuring

Recognizing the need for restructuring is the first step towards an effective change. Signs like declining productivity, increased conflicts, or a lack of innovation can indicate structural problems within a team.

If you notice that your team is consistently missing deadlines, it might signal that their workload is not distributed evenly. Similarly, if there are frequent disagreements or if some members feel unheard, it might imply an issue with your team’s communication structure. Paying attention to these signs can help you identify when it’s time to consider restructuring.

According to a survey by McKinsey & Company, 60% of organizational leaders believe that they will need to restructure their teams significantly over the next five years to stay competitive.

Source- depositphotos.com

Understanding Your Current Team Structure

Before you begin restructuring, it’s crucial to have a grasp on your current team structure. This involves identifying strengths and weaknesses, the relationships as well as understanding the roles and responsibilities of each team member.

Identifying Strengths And Weaknesses

Start by assessing the strengths and weaknesses of your existing structure. What aspects of your team are working well? Where do the challenges lie? By answering these questions, you can identify what needs to be preserved and what needs to be improved during the restructuring and reorganization process.

Consider conducting a SWOT analysis (Strengths, Weaknesses, Opportunities, and Threats) of new teams for a comprehensive understanding. This will give you a clear picture of your team’s current situation and help you plan the changes more effectively.

Evaluating Roles And Responsibilities

Next, evaluate the roles and responsibilities of each team member. Are they clear and well-defined? Does everyone understand their duties and expectations? Unclear roles can lead to misunderstandings and inefficiencies, which can hamper your team’s performance.

As you review the roles, also consider whether they align with the individual’s skills and interests. Misalignment between a person’s abilities and their assigned tasks can result in lower job satisfaction and productivity.

A report by Deloitte found that 80% of organizations that underwent restructuring efforts reported improved performance, with increased profitability and efficiency.

Source- depositphotos.com

Planning The Restructure

Once you’ve understood your current team structure, it’s time to plan the restructure. This involves a new organizational structure, consulting key stakeholders and creating a detailed plan.

Consulting Key Stakeholders

Restructuring affects everyone in the team, so it’s essential to involve key stakeholders in the planning process. This includes team members, managers, and other relevant parties. Their input can provide valuable insights into the changes needed and help ensure that the new organizational structure will be effective and well-received.

Hold brainstorming sessions, conduct surveys, or schedule one-on-one meetings to gather feedback and suggestions. Remember, the goal of restructuring and reorganization is to enhance team performance, and who better to guide this process than the people directly involved?

The global market for organizational consulting services, including team restructuring, was estimated at $3.5 billion in 2020, as reported by Statista.

Creating A Detailed Plan

After gathering input, create a detailed plan for the restructuring. This should outline the new team structure, including the roles and responsibilities of each remaining team member, communication channels, decision-making processes, and conflict resolution mechanisms.

Be sure to include a timeline for the implementation and a strategy for communicating the changes to the team. Also, consider potential challenges that might arise and develop contingency plans to address them.

The cost of replacing an employee can range from $15,000 to $90,000, depending on the position, department and industry, according to the Society for Human Resource Management (SHRM).

Source- depositphotos.com

Implementing The Restructure

With a solid plan in place, you’re ready to implement the restructure. The two key aspects of this stage are communicating the changes to the team and addressing any concerns or conflicts that may arise.

Communicating Changes To The Team

Clear and transparent communication is vital during this period of change. Make sure to explain why the restructuring is happening, what the new structure will look like, and how it will affect each team member. This will help alleviate any anxiety or confusion and ensure in future on that everyone is on board with the changes.

Use various communication methods to convey your message – team meetings, emails, newsletters, etc. The goal is to keep everyone informed and engaged throughout the process.

According to a report by Harvard Business Review, 70% of organizational change initiatives fail, highlighting the challenges associated with restructuring efforts.

Addressing Concerns And Resolving Conflicts

Change often brings uncertainty and resistance, so be prepared to communicate and to address concerns and resolve conflicts. Encourage team members to voice their doubts or fears and respond to them empathetically and constructively.

Conflict resolution strategies like negotiation, mediation, or even third-party intervention can be used to handle disputes. The objective is to ensure a smooth transition and maintain a harmonious team environment.

A study by Gartner revealed that 55% of employees feel more engaged when they have opportunities for skill development during a team restructuring process.

Source- depositphotos.com

Monitoring And Adjusting The New Structure

The work doesn’t end with the implementation of the restructure. It’s important to monitor the new team structure and adjust it as needed. Regularly check in with your team members to gather their feedback and make necessary tweaks. Remember, restructuring is not a one-time event but an ongoing process of improvement.

The Role Of Leadership In Team Restructuring

Leadership plays a critical role in team restructuring. Leaders are responsible for driving the change, addressing concerns, resolving conflicts, and ensuring that the new structure aligns with the team’s and organization’s goals. They also set the tone for the team’s attitude towards the restructuring – if leaders are positive and committed, the more successful restructure of the team is likely to follow suit.

Therefore, effective leadership is crucial for successful team restructuring. Leaders must demonstrate empathy, transparency, and resilience to navigate their team through this challenging process.

A survey by PwC showed that 34% of HR professionals consider the lack of clear communication during restructuring as the primary reason for its failure.

Final Thoughts

Restructuring a team is a complex but necessary process for any organization aiming to stay agile and remain competitive, in today’s fast-paced business world. Although it may seem daunting, with careful planning, open communication, and strong leadership, you can successfully navigate your team through this transition.

Remember, the goal of restructuring is not to cause upheaval but to improve efficiency, productivity, and satisfaction within your team. Therefore, keep your team’s needs at the center of your restructuring efforts and make changes that will ultimately benefit everyone involved.

Last Updated on September 7, 2023 by himani


  • Parina

    Parina Parmar is a full-time dog mom with a knack for content, editing & advertising. She has years of experience in the communication industry, and her dedication to maintaining the integrity of the author's voice while ensuring clarity and coherence in the text sets her apart in her field. She is dedicated to immersing her love for culture, music, and the advertising industry in her works.


    • Bachelors in Journalism and Mass Communication
    • Specialization in SEO, Editing, Digital Strategy, Content Writing & Video Strategy


    • Bachelors in Journalism and Mass Communication
    • Diploma in Fashion Desgining
    • Performance Marketing by Young Urban Project

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