Enterprise restructuring is more complex than smaller-scale changes due to the size of the workforce and the number of moving parts. With multiple departments, locations and stakeholders involved, decisions take longer and are harder to implement. There’s also a greater risk of disruption, along with more compliance and legal considerations to manage. Large organisations need strong workforce modelling tools to handle the volume of data and make sure changes support business goals.
A good org design and workforce modelling tool helps organisations plan and execute changes, make better decisions and ensure the right people are in the right roles. In this blog, we’ll explore six key challenges faced during enterprise restructuring and how to overcome them.
Challenge #1: Managing organisational complexity
Large enterprises often span multiple locations, departments and functions, making it harder to manage workforce structures. With many reporting lines, roles and teams, it’s easy for data to become siloed and for leaders to lose visibility of how everything fits together. This lack of clarity can slow down decision-making and make it harder to plan effectively.
Solution:
Org design tools help simplify this complexity by providing a clear visual view of the organisation. These tools show how teams, roles and functions are connected, making it easier to understand workforce dependencies and identify gaps or overlaps. With all relevant data in one place, organisations can make faster, more informed decisions and align their workforce to business goals.
Challenge #2: Aligning workforce structure with business goals
Enterprise restructuring is often driven by the need to support growth, reduce costs or improve agility. A key challenge is ensuring the workforce structure supports these goals. That means having the right roles, skills and resources in place to deliver on the organisation’s strategy.
Solution:
Scenario planning allows organisations to test different workforce configurations and see how each one impacts business outcomes. By visualising different options before making changes, leaders can better align workforce structure with business goals and make more informed, data-driven decisions.
Challenge #3: Managing regulatory and compliance risks
Enterprise restructuring involves navigating a complex mix of labour laws, industry regulations and union agreements. Without careful planning, there’s a risk of legal issues, penalties and reputational damage, especially when it comes to workforce changes like reassignments or redundancies.
Solution:
Compliance-driven org design tools and legal expertise can help reduce risk. These tools can flag potential issues early and ensure decisions align with relevant laws and agreements, making it easier to manage compliance throughout the restructuring process.
Challenge #4: Managing stakeholder resistance and communication barriers
Resistance to change is common in enterprise restructuring. Concerns from executives, HR and employees can create roadblocks if not addressed early. Poor communication also increases the risk of misinformation and disengagement.
Solution:
Clear and open communication is key. Keep stakeholders informed from the start, involve them in decision-making and encourage feedback. A transparent approach builds trust, reduces resistance and helps the restructure run more smoothly.
Challenge #5: Addressing data accuracy and integration issues
Reliable data is essential in enterprise restructuring, but many organisations struggle with outdated or siloed HR and payroll systems. Without accurate data, it’s difficult to make the right decisions about structure, roles and resources.
Solution:
Workforce modelling tools that integrate with existing HR and payroll systems can provide a single, accurate view of the workforce. This gives leaders the insights they need to make confident decisions and avoid costly mistakes.
Challenge #6: Executing and sustaining change
Planning a restructure is one thing, but making it stick is another. Many organisations struggle to move from planning to implementation, and without ongoing tracking, it’s hard to know whether the changes are delivering the desired results.
Solution:
Workforce analytics help organisations track progress, measure impact and make adjustments where needed. By monitoring key indicators over time, you can refine the structure, respond to changing needs and make sure the restructure continues to support your goals.
Technology’s role in enterprise restructuring
Traditional tools like Excel and PowerPoint aren’t built for enterprise restructuring. They make it hard to share updates, test scenarios or collaborate in real time, especially across large and complex organisations.
How org design tools help
Modern org design tools make it easier to manage restructuring at scale. They help you visualise your workforce, run scenarios, spot risks and make informed decisions faster. By bringing together data from across the business, these tools provide a single source of truth for planning and communication.
Best practices for enterprise restructuring
- Align with strategic goals: Make sure restructuring supports your business objectives, whether it’s growth, cost savings or greater agility.
- Engage stakeholders early: Bring executives, HR and key leaders into the process from the start. Early buy-in reduces resistance and helps things run more smoothly.
- Use automation and AI: Automation tools can streamline planning and help reduce manual work, while AI can support faster and more accurate decision-making.
- Plan for implementation: Break the restructure into clear steps and communicate them across the business. Support your teams through the change with training and guidance.
Enterprise restructuring is complex, but with the right tools and approach it can drive real value. By tackling the six challenges outlined in this blog and using workforce modelling tools to guide your decisions, you can plan and deliver a more effective restructure.
Ready to get started?
Book a free trial of our tool to simplify enterprise restructuring and make workforce modelling easier at every stage.