Core Idea

Reorganisations are inevitable in growing companies: managers must initiate them with clear rationale and early communication, while employees must rebuild trust, find their anchor, and deliberately reconstruct the context that structural change destroys.

A reorganisation (reorg) is the deliberate restructuring of reporting lines, team boundaries, or strategic scope. Lopp frames reorgs as inevitable in any growing company — the question is how well managers and employees navigate them.

For Managers Initiating a Reorg

  • Know why: A reorg without clear strategic rationale is a political reorg. Political reorgs rarely solve the underlying problem and burn trust rapidly.
  • Minimise scope: Change as few individuals as possible. Iterative adjustment preserves team cohesion and reduces disruption better than rebuilding the entire org chart.
  • Communicate early: The rumour mill activates the moment anyone suspects change. Leaders who communicate late find rumours have already filled the gap — consistently in the worst direction. Transparency beats silence, even when the message is incomplete.

For Employees Surviving a Reorg

  • Assume good intent, provisionally: Acting from assumed malice rarely improves outcomes. Extend provisional trust while gathering more information.
  • Find your anchor: Identify your new manager and begin relationship-building immediately. The direct manager relationship is the most operationally important in any reorg.
  • Rebuild context deliberately: Reorgs destroy shared history, working relationships, and team norms. Context-Capture becomes critical — document what you know so it is not lost in the transition.

The Rumour Mill

Research confirms rumours surge in ambiguity — the exact conditions reorgs create. They fill the information vacuum when formal communication is absent and consistently skew negative. The antidote is not perfect information — it is early, honest communication that acknowledges what is known and what is not yet decided.

Free Electrons and Post-Reorg Relationship Rebuilding

Free-Electrons are particularly vulnerable: their high autonomy depends on informal relationships that structural change can sever overnight. Managers must explicitly protect Free Electron operating space post-reorg.

Reorgs reset social capital for everyone. Even strong performers must re-establish trust with new stakeholders — this is the work of the first 90 days, overlapping with Ninety-Day-Integration.

Sources

  • Lopp, Michael (2019). Managing Humans: Biting and Humorous Tales of a Software Engineering Manager. 3rd ed. Apress. ISBN: 978-1-484-23712-4.

    • Chapter 39: “Rules for the Reorg” — dual-perspective framework; the rumour mill as information vacuum; strategic vs political reorgs
  • Bridges, William and Susan Bridges (2017). Managing Transitions: Making the Most of Change. 4th ed. Da Capo Press. ISBN: 978-0-738-21026-9.

    • Transition Model: Endings → Neutral Zone → New Beginning; explains why reorgs disorient employees even when strategically sound
  • Stouten, Jeroen, Dominique M. Rousseau, and David De Cremer (2018). “Successful Organizational Change: Integrating the Management Practice and Scholarly Literatures.” Academy of Management Annals, Vol. 12, No. 2, pp. 752-788. DOI: 10.5465/annals.2016.0095.

    • Meta-review confirming communication quality and stakeholder involvement are among the strongest predictors of successful change outcomes
  • Bordia, Prashant, Elizabeth Jones, Cynthia Gallois, Victor J. Callan, and Nicholas DiFonzo (2006). “Management Are Aliens! Rumors and Stress During Organizational Change.” Group & Organization Management, Vol. 31, No. 5, pp. 601-621. DOI: 10.1177/1059601106286880.

    • Empirical study showing rumours spike during organisational change; early transparent communication is the primary management countermeasure
  • Larson, Will (2019). “Running an Engineering Reorg.” Irrational Exuberance (blog). Retrieved February 2026. Available: https://lethain.com/running-an-engineering-reorg/

    • Practitioner guide covering scope minimisation, communication sequencing, and protecting high-performer relationships

Note

This content was drafted with assistance from AI tools for research, organization, and initial content generation. All final content has been reviewed, fact-checked, and edited by the author to ensure accuracy and alignment with the author’s intentions and perspective.