The Benefits of an Organisational Restructure
Is it time to make a change? As we head into the latter part of 2021 and we look towards 2022, businesses should consider if they need to resize.
Business identity and resizing:
The business landscape has changed since I started in business. Back then a company’s physical impression and swanky new office space was very important. Face to face meetings allowed companies to showcase their material success. Tech companies like Google and Facebook still spend a fortune on the office environment because they think their employees are going to be happier and more productive, but that is not always the case.
Office space and projecting that kind of impression used to be critical for me when conducting client meetings. It was also a big part of my business identity and persona. However, as my work became more internationally based I had less need of a physical office. My meetings and coaching sessions were conducted over video conferencing and zoom. Despite this, I still couldn’t give my office up as it felt like part of my business core.
In 2019, the pandemic forced my hand as my lease came up for renewal. The business landscape changed overnight with lockdown. It shocked us fiscally and emotionally worldwide. Offices shut and face to face meetings ceased. There was a seismic shift in how we all did business. Some clients adapted to video meetings and calls easily, but some took longer. Ultimately everyone had to get used to the digital workplace. Office space became largely obsolete. Conversations started within companies about what would happen with that office space going forward.
The psychological impact of resizing:
I decided not to renew my lease. Financially it offered me more freedom. However, the psychological impact on me was much greater than I first anticipated and I began to feel the effects of that about 3-4 weeks after letting the office go. I lost some employees who could not cope without that physical support structure. As an employer, I found that hard. My office was my business identity. I had it kitted out with all the best tech and digital whiteboards. I focused on what I lost. Then I recognised that I had to give myself time to grieve my loss. I shifted my thought process. I had not lost a space, I had GAINED a new space instead. I had also gained a new way of working and a new support structure by taking on new team members who were used to remote working.
Why might we need to resize?
Many organisations are now resizing. The pandemic forced us to work remotely for 18 months. It has created a new workforce that now wants a blended way of working. An example of that blended approach may mean employees working three days from home and two days from the office. People want to be in control of their commute.
If you have office space which caters for 1000 people and only 75% of your team are in at any one time, much of that space will now be redundant. Businesses may look to downsize their office space to make cost savings. On the flip side, businesses who went entirely remote during the height of the pandemic and got rid of their office space, may be looking to acquire office space again to cater for their blended workforce. Other clients of mine are busier than ever as the economy starts to try and recover. They are scaling up their businesses by taking on more warehousing, distribution or manufacturing space.
How can we resize?
We hope that we are now on the other side of the pandemic and learning to live with the virus. The world economy is recovering and it may be prudent as a business to consider resizing. Do you need to size up or down? Is your workforce fully remote or blended? Look at your space and consider if you need it, or more of it. What can you do with the existing space, can you reutilise it? How can you change it? Some businesses with long leases are subletting if their contract allows. We are no longer chained to city centre locations therefore cheaper rural office accommodation might work for your business. Consider the alternatives.
Don’t get left behind:
Resizing forced me to change the way I operate and it was definitely the right decision. However, It was a difficult decision to make which had an impact on me physically and mentally. Making a transition like this can be uncomfortable but the long term gains outweigh the difficult decision making process. I’m happier and better equipped to deal with the future. Resizing is not a negative process. Our trading environment has changed and we need to change with it.
If you need to resize your organisation and you are not sure where to start then head over to Contact Me.
Remember, failing to learn is learning to fail.