Wednesday, June 10, 2026
When was the last time you went through a corporate reorganization and then said – well, now, THAT’s better!
If that’s NEVER been your reaction, you’re not alone.
Reorgs are sometimes code for layoffs. Other times, people don’t necessarily lose their jobs, but they OFTEN lose momentum, focus, and a sense of stability.
Study after study shows that the average reorganization rarely results in increased productivity, more profitability, or a better culture.
More often, they exact real costs in terms of employee wellbeing, trust, leadership credibility, productivity, and the organization’s financial performance.
Now, some reorgs are legit – IF they’re part of a larger well-thought-out strategy. But in the vast majority of cases, we’re simply shuffling the boxes on the org chart. The corporate equivalent of rearranging the deck chairs on the Titanic.
Because the hard truth is that most performance problems are CULTURE problems, or LEADERSHIP problems not org chart problems.
Reorganizations are disruptive. And so we HAVE to ask – do the benefits of the reorg outweigh the disruption it is sure to cause?
So before you prescribe or undertake a costly and disruptive reorganization, look inward, and ask your colleagues to do the same. Ask, “What could we accomplish if we first change ourselves and how we lead, rather than subjecting everyone to another reorg?”