The Crucial Role of HR Leadership in Organizational Design Transformation

HR Leaders play a pivotal role in guiding organizations through the complex and challenging process of organizational restructuring transformation. Without effective leadership at the helm, even the most well-intentioned and planned restructurings can falter. Leadership brings clarity, direction, and inspiration to the transformation journey, ensuring that all employees navigate the changes with purpose and resilience. Transformation almost always leads to significant business disruptions and perceptions of losing control, especially when transformation involves changes to the structure, ways of thinking, and ways of working. Thus, require strong leadership and a clear head to navigate organizations through what can and cannot be controlled and to ensure effective collaboration and communication. HR Leaders play a vital role in this process, as they are the primary conduit and enabler of the organization’s most critical and complicated asset, its people.

Organizational restructuring transformation refers to the deliberate and strategic changes made to an organization's structure, processes, and systems to enhance its overall effectiveness, agility, and ability to meet evolving business demands. This involves reimagining and strategically reshaping various aspects of an organization, such as roles, responsibilities, where authority lies, workflows, and communication channels. Considering the fact that the typical organization today has undertaken 5 organizational changes in the past 3 years, change is here to stay, and the way in which an organization is structured to work is increasingly important. Organizational restructuring is driven by either strategy (because great design enables the delivery of desired strategic outcomes) or organizational design goals such as headcount reduction, new capabilities, agility, etc. But implementation often fails when leaders lose sight of why they are transforming, focus on themselves and their team and not the broader organization, are change resistant or let their emotions guide decision-making. So how can HR Leaders avoid these common pitfalls and successfully implement and manage the transformation?

Here are what we believe to be the key lessons in how HR Leaders can ‘show up’ when things can be messy in order to empower their organizations to embrace change, maximize opportunities, and achieve sustainable success.

Leadership Lesson 1 - Leverage Data

Leadership in organizational redesign transformation involves making data-driven decisions. Effective HR Leaders gather and analyze relevant data to gain insights into the current state of the organization. They use this information to identify areas for improvement and drive strategic initiatives that align with the organization's goal. This data can include span of control, layer analysis, employee net promotor score, productivity, data removes ambiguity and arms leaders to initiate and drive discussions based on people-related data and analytics.

Leadership Lesson 2 - Remain Professional

During times of change, emotions can run high, and challenges may arise. Strong leaders maintain a professional demeanour, remaining composed and focused. Organizational redesign is about changing the way in which people work, which can spark fear, anxiety, uncertainty and loss in productivity. To avoid this trap, it is important for HR Leaders to remind their peers to move beyond the names in the boxes and remain focused on the required organizational capabilities and desired outcomes of the transformation and not design the organizational structure for the skills their teams have today. Or worse, in order to preserve a leader’s current team. It is important to remain focused on the purpose of the transformation and the desired goal which even for the most seasoned leader can be difficult when discussing the future of their team.

Leadership Lesson 3- Do Not Fall into the Same Trap

Leadership in organizational design transformation requires a commitment to avoiding the pitfalls of repeating past mistakes. Effective HR Leaders learn from previous experiences and actively seek innovative solutions. It is important to flip the pyramid on its head and design from the bottom up, challenging the current state and flow of work and encourage alternative thinking in order to embrace new ideas on the way in which the organization works.

Leadership Lesson 4 – Remind (Define) What It Means to Be a Leader

In times of transformation, it becomes crucial for leaders to clearly define what it means to be a leader within the organization. They establish a vision, communicate expectations, and empower individuals to take ownership of their roles. By providing guidance and support, leaders foster a sense of purpose and inspire their teams.

Leadership Lesson 5 – Leaders Often Need to Take the First Step

One of the most powerful tools a leader possesses is leading by example. However, leaders are people too, and it is common to experience change fatigue at the time of transformation execution / implementation. Leaders have been ‘living’ the transformation long before the rest of the organization. Leaders need to remember that they embody the values and behaviours they expect from their teams. They model resilience, adaptability, and a willingness to embrace change. By demonstrating commitment to the transformation, leaders inspire others to follow suit. They lead by example, setting the tone for the organization at all levels.

Leadership Lesson 6 – Protect the Unwritten Rules

Leadership during organizational design transformation involves protecting and remaining aligned to the purpose, values, and culture of the organization. Effective HR Leaders maintain an ongoing pulse with the goal of predicting and anticipating the implications of the transformation, monitoring the impact, and remaining visible. According to a recent McKinsey survey, companies are more than 5 times more likely to have a successful transformation when Leaders have role-modelled the behaviour changes they were asking employees to make. Change can be unsettling, and employees may experience uncertainty and resistance. Effective leaders create a safe and inclusive environment, fostering open communication and providing resources to help their teams navigate the challenges and opportunities that arise. They ensure they constantly communicate the purpose of the transformation and link this back to the values and culture the business embodies.

Leadership Lesson 7 - Relentlessly Track Progress and Value

Transformation is only successful if it creates the intended value. To ensure the success of organizational design transformation, leaders must be relentless in tracking progress and measuring outcomes. By setting key performance indicators (KPIs) and regularly evaluating results, leaders can identify areas of improvement and celebrate successes. They recognize and value the efforts of their teams, fostering a culture of continuous learning and growth.

Leadership Lesson 8 - Address What Is Not Working

Leadership in organizational design transformation requires the ability to identify and challenge what is not working. People expect change, so take advantage of this opportunity to address historical structural choices, titles, job classifications and descriptions and reporting relationships. Embracing this approach enables leaders to create an organizational structure that is better aligned with the evolving needs of the business and its employees, paving the way for enhanced efficiency, productivity, and success.

Leadership Lesson 9 – Leaders Need Love Too

In the midst of organizational transformation, leaders can often become consumed by the demands of the process. It is essential for leaders to prioritize self-care and maintain a healthy work-life balance. It is also important for leaders to remind themselves of the desired strategic outcomes of the transformation and that they are doing what is right for the organization. Change is difficult, even for those who are leading the change. It is important for leaders to embrace the discomfort and remain willing to work through it. By taking care of their well-being and the professional development they require, leaders can sustain their energy and make sound decisions for the organization's benefit.

Leadership Lesson 10 - Keep Your Fellow Leaders Honest

Collaboration and alignment among leaders are vital during organizational restructuring transformation. Effective leaders foster an environment where constructive feedback and healthy debates are encouraged. They hold their fellow leaders accountable, ensuring that decisions are made in the best interest of the organization and its stakeholders. Ultimately, they call each other out on their BS. This is probably the most important role a leader can play. In order to successful obtain the intended value of the transformation, leaders need to maintain a unified team and keep each other on track.

HR Leadership plays a pivotal role in driving successful organizational design transformation. Leaders who leverage data, remain professional, learn from past mistakes, define leadership qualities, lead by example, protect their teams, track progress, address challenges, prioritize self-care, and maintain accountability among leaders pave the way for a resilient and thriving organization. By embracing these ten essential points, leaders can navigate the complexities of change and guide their organizations toward a brighter future.

Author: Mike Glover , Principal at Stack'd Consulting

Mike is a Principal at our Calgary office and an experienced strategist. With a focus on driving efficiency, effectiveness, and engagement, Mike offers creative solutions by leveraging processes and insights to identify new opportunities for clients. This coupled with his project management experience and execution mentality ensures a comprehensive approach to transformation.