Strategic People Decisions #1: Restructuring Without Destroying Team Morale: A 30-Day Playbook (for Startups)
How to reshape your organisation whilst keeping your people on side and your sanity intact during the messiest part of business life.
Let's be honest. Restructuring is about as popular as a pussy boil on your face, or someone cooking fish in the microwave. But sometimes it has to happen. Maybe the business has changed direction, perhaps there's new technology to embrace, or you've realised that having three different people doing essentially the same job isn't the masterstroke you thought it was.
The trick isn't avoiding restructuring when you need it. The trick is doing it without your team feeling like they've been hit by a bus they didn't see coming.
Week 1: The Foundation Stage
Start by being brutally honest with yourself about why you're doing this. "Because the board said so" isn't good enough. Don’t be a weasel. Your people will see right through vague corporate speak. They need to understand the real reasons - perhaps the market has shifted, maybe you're expanding into new areas, or you've spotted inefficiencies that are holding everyone back.
Get your senior team aligned first. Nothing kills trust faster than mixed messages from leadership. If your managers are confused about the direction, your employees will be too. Have those difficult conversations now, not halfway through the process.
Trust is fragile during change.
Write down your communication plan. Not a fancy deck with corporate buzzwords, just clear points about what you're changing and why. Think about what your team will actually want to know: will they still have jobs, will their roles change, and when will they know for certain?
The thing that will kill your organisation isn’t the restructure, it’s going to be the anxiety of the unknown everyone will face. Try working when you’re super anxious about being laid off and your only sustenance is crusts from the rumour mill.
Week 2: The First Conversation
Here's where most companies mess up. They either say nothing until the last minute or they share so much detail that everyone panics about things that haven't been decided yet.
Call a team meeting. Yes, it'll be awkward. Do it anyway.
Tell them you're looking at how the team is structured and explain why. Share the timeline. Be clear about what you know and what you're still figuring out. Most importantly, tell them how they'll be involved in the process.
People hate uncertainty, but they hate being kept in the dark even more. Give them something to hold onto - regular updates, specific dates when decisions will be made, and clear channels for questions.
Week 3: The Deep Dive
This is where you do the actual work of restructuring, but with your team involved, not sidelined.
Talk to people about their current roles. What do they actually do versus what their job description says? What parts of their job energise them? What would they change if they could? You'll be amazed at what you discover.
Look at workflows and processes. Often, restructuring reveals that the problem isn't the people or even the structure - it's the way work flows between teams. Fix the processes and you might need less dramatic changes to roles.
Keep communicating. Even if there's nothing new to report, say that. "We're still working through options and will update you next Friday" is better than radio silence.
Week 4: The Decision Phase
By now, you should know what changes you need to make. But before you announce anything, think about implementation.
Who will be affected and how? What support will they need? If someone's role is changing significantly, what training or transition time do they need? If you're letting people go, how will you manage that process fairly and sensitively?
Consider the ripple effects. Changing one person's role often impacts their colleagues. Make sure you've thought through how work will get redistributed and what new working relationships need to form.
When you're ready to announce changes, do it face-to-face where possible. People deserve to hear about major changes to their working life from a human being, not an email.
The Human Stuff That Really Matters
Throughout this process, remember that restructuring affects people's lives outside work too. That promotion someone was hoping for might now be off the table. Someone might worry about paying their mortgage if their role changes.
People appreciate being treated like adults who can handle difficult conversations.
Be prepared for emotional reactions. People might be angry, upset, or confused. That's normal. Give them space to process the news. Don't expect everyone to be thrilled about change, even if it's objectively a good thing.
Follow through on your promises. If you said you'd provide training, make sure it happens. If you promised regular updates, stick to the schedule. Trust is fragile during change, and broken promises can shatter it completely.
What Good Looks Like
Done well, restructuring can actually boost morale. People appreciate being treated like adults who can handle difficult conversations. They value being involved in shaping their future rather than having it imposed on them.
You'll know you've got it right when people understand why changes are happening, feel heard in the process, and believe you've made decisions fairly. They might not love every aspect of the new structure, but they'll respect how you handled it.
The 30-Day Reality Check
One month isn't magic. Some restructures take longer, others can be quicker. The timeline matters less than the approach. Give people enough time to understand what's happening and have their say, but don't drag it out so long that uncertainty becomes toxic.
Most importantly, remember that restructuring isn't just about org charts and reporting lines. It's about people's working relationships, career prospects, and sense of purpose. Handle those with care, and the rest will follow.
Change is hard enough without making it harder than it needs to be. Your team will remember how you handled this process long after they've forgotten the specific details of the new structure. Make sure those memories are ones you can all be proud of.