High Growth Handbook: Scaling Startups From 10 to 10,000 People

by Elad Gil

7. Communicate directly and clearly, and compassionately. Don’t beat around the bush when doing the re-org. Explain in clear language what is happening and why. Listen to people’s feedback but be firm about the change. There will always be people who are unhappy with the shift in org structure. They may feel passed over for promotion or demoted, even if this is not the case. Listen carefully and see if you can meet their needs in the future. However, keep backtracking to a minimum. You are making this change for a reason, and if you start making exceptions for the squeakiest wheels you may reverse the whole reason you are making the change, as well as show people you are open to being politicked. Just like letting people go, a re-organization can be unpleasant. There will undoubtedly be people disappointed with their new role or diminished responsibilities. If done right however, your company will function more effectively and be aligned to win. Re-orgs have to occur for the long term success of the company.