How to Know When It's Time to Restructure Your IT Team

As technology and business practices evolve, so should IT teams. When an organizational structure that once worked effectively and efficiently begins to show signs of rigidity, complacency, or inefficiency, it may be time for a total overhaul. 

A key sign indicating the need for a total restructuring is when your team isn't able to respond to critical business needs at a pace required for success, says Javier Muniz, CTO at law firm LLC Attorney, in an email interview. "If you notice consistent delays in project delivery, decreasing productivity, or a growing disconnect between IT and other business areas, it could be time to reassess your team structure." 

Multiple Benefits 

When accomplished properly, restructuring improves staff performance by creating a more efficient workflow, aligning individual capabilities with role expectations more accurately, and promoting better internal communication, Muniz says. 

Team performance and morale grow and prosper when members are free to create strong and efficient solutions. "A structure that doesn't fit business needs creates frustration for both the IT staff and the people working in the business units," observes Alan Thorogood, research and member engagement leader, AsiaPac, with the MIT Center for Information Systems Research (CISR). "The frustration leads to workarounds that are also inefficient, reducing overall productivity," he notes via email. 

Related:Well-Intentioned Things IT Leaders Do That Hurt Team Productivity

When restructuring is executed in a strategic manner, team performance typically increases. "In a strategic restructuring, expectations are clear, resources are aligned, and individual strengths are optimally matched to assigned work," says Jeff Strunk, vice president of team advisory firm Right Management in an online interview. "Painting the picture of the future needed to achieve your goals, and then moving everyone to the roles they can perform best, is a more robust way of restructuring than simply looking for which headcount to reduce to fit the new budget." 

Getting Started 

Launching a restructuring initiative without adversely impacting performance requires strategic planning, Muniz says. "Prioritize open communication about the changes and why they're necessary, coupled with reassurances of job security," he advises. "Be ready to provide additional support to the team during the transition phase." 

Begin by building a restructuring strategy and defining the potential final framework, Strunk says. Seek out a trusted partner, such as your enterprise's HR head or other top leader, to check your approach. Only share news of the pending change when you're certain it's ready to roll out immediately. Also contemplate the rollout's impact on individual team members, he recommends. "Telling your team you're considering a reorganization later this year, and then taking months to roll it out, is a sure way to put everyone on a self-imposed extended hiatus." 

Related:How to Manage a Rapidly Growing IT Team

Team Support 

Encouraging active team input will help the IT leader discover restructuring benefits and obstacles. "Dealing with obstacles that you anticipate is easier than dealing with surprises," Thorogood observes. 

Muniz believes that team input is absolutely crucial. "It builds buy-in and helps you understand the unique dynamics of your team," he explains. "You can engage team members ... through transparent dialogues, surveys, or facilitated focus groups." 

Strunk suggests regularly observing your team to understand not just what they're delivering, but what they're not delivering. "These insights will not only help you become a more supportive manager, but also make you well informed of the capabilities and deficiencies to resolve in your next structure and operating model," he explains. "Avoid inducing anxiety by only asking 'how could we do this better' questions when restructuring is in the air." 

Related:How to Structure Your IT Team for Efficiency and Strength

Timeframe 

The time required to plan and execute a restructuring varies considerably. "The restructuring timeline largely depends on the size of the team and the extent of changes," Muniz says. He believes that in most cases three to six months is a reasonable estimate for a seamless transition. 

Leaders need to be engaged and present in forming and shaping the new future, Strunk says. "Successful leaders demonstrate agility in hearing employee feedback and implementing course corrections to help everyone embrace and make the most of the change." 

As the IT head, you restructured to improve and grow, Strunk says. "As a leader, you must now nurture IT to a sustainable new normal, not leave it for your middle managers and front line to simply make do with a new world amidst increased pressure to perform." 

Parting Thoughts 

Business changes driven by trends in cybersecurity, AI, data monetization, real-time business, customer expectations, and other innovations make IT team restructuring a periodic necessity. "When done well, the IT team performs powerfully and efficiently," Thorogood says. 

Despite challenges, restructuring can stimulate innovation, break silos, and align the IT team more closely with broader business objectives, Muniz says. "It's an integral part of maintaining an agile, effective IT function."