When a technology company undergoing a major reorganization asked us to support one of their senior leaders, the objective was clear: Help Andrew make this team work. The company had just flattened its structure. Fewer layers. Wider spans of control. A renewed focus on efficiency and getting back to basics.
On paper, it looked like progress: cleaner org lines, leaner teams, faster decisions. But the reality was messy.
Andrew had taken on responsibility for a newly formed departmenta blended group formed from two legacy product teams. Priorities were unclear. Systems outdated. Roles overlapped. Morale was low, and scrutiny from the top was higher than ever.
The transformation trap
Its not uncommon. According to McKinsey, fewer than one in three organizational transformations actually succeed in improving performance and sustaining those gains, even when leaders are well-intentioned and highly motivated.
As leadership coaches, we see this frequently: talented, driven leaders set up to fail, not because they lack the skill or will, but because the systems they are asked to lead are misaligned.
Too often, leaders are brought in to fix struggling teams but lack the authority to address whats actually broken: structure, goals, or even team composition. In theory, preserving institutional knowledge or deep technical expertise makes sense. In practice, it often means clinging to outdated priorities and unproductive dynamics.
That’s why reorgs are so popular. They are fast, visible, and signal action. But shifting boxes on an org chart doesn’t address deeper performance issues.
As McKinsey reports, companies that focus on structural changes, without also shifting behaviors, building capabilities, and evolving culture, rarely achieve lasting results. Unless you help people shift their mindsets, rebuild trust, and cocreate new ways of working, youve only moved the dysfunction around.
And leaders are left managing a team thats misaligned, burned out, or unclear on their value. If results dont come swiftly, your team loses faith, and the C-suite questions your ability to lead.
Through our work advising dozens of companies navigating high-stakes transformations, Kathryn, as an executive coach and keynote speaker, and Jenny, as an executive adviser and L&D expert, we have identified five critical moves that help leaders succeed.
Whether you have just inherited a struggling team or you are preparing to lead through change, heres how to reset the foundation before the story writes itself.
1. Audit the System Before You Judge the People
Stepping into leadership of an underperforming team usually comes with a baked-in narrative. Youre told they lack initiative, or arent strategic. When metrics are in the red, its easy to assume the issue is the people.
But more often than not, the system is broken.
When Andrews scope was expanded to include the newly formed department, they were perceived as helpful but inconsistent. They were responsive but struggling to make significant progress on key initiatives. Rather than default to performance assumptions, Andrew stepped back and audited the system.
He uncovered vague goals, shifting priorities, and incentives that rewarded busyness over business impact. Once he clarified what mattered and aligned the teams work with what the business actually valued, both performance and reputation improved rapidly.
Before judging individuals, ask:
Are goals clear and achievable?
Do people have the tools, decision rights, and autonomy to deliver?
Are incentives aligned with strategic outcomes?
Is the team working in silos or collaborating across the organization?
Is the teams work seen and valued by the business?
A team cant execute what it doesnt understand. Start by investigating and diagnosing the environment, not the people. As Deloitte emphasizes, leaders must go beyond surface-level restructuring by enabling teams to work differently and aligning systems with strategy.
2. Name Whats BrokenWithout Placing Blame
As you get up to speed, dont go silent. Engage the team early. Most teams already know whats not working. Theyve just stopped saying it out loud because previous feedback was ignored or worse, weaponized.
Your job is to surface how the system might be failing them. That requires curiosity, psychological safety, and a shift in tone.
Instead of asking Whats wrong here? ask, Whats getting in the way of great work? Focus on processes, handoffs, and ways of workingnot personalities.
Consider using the Start / Stop / Continue framework:
What should we start doing to be more effective?
What should we stop doing that no longer serves us?
What should we continue doing thats working well?
And remember: the reorg alone may trigger what we call F.U.D.Fear, Uncertainty, and Doubt. People may worry about whats changing, whether theyre valued, and if its safe to speak up.
To build trust, bring in a neutral third party. Begin with an anonymous survey. Follow it with a facilitated group discussion that you briefly open, then step out of. This signals your commitment to listenig without defensiveness.
When team members realize their colleagues share the same frustrations, the energy shifts. Clear thinking replaces frustration. Accountability increases and solutions emerge.
This isnt just a diagnostic, its an inflection point. When teams feel heard and leaders act on what they hear, people begin to reengage.
3. Surface Strengths and Secure Early Wins
Once the team starts speaking candidly, dont just fix problems. Find strengths. Even struggling teams hold valuable assets: institutional knowledge, strong relationships, or customer insights. Surface whats working, name it, and build on it. This boosts confidence and builds momentum.
At the same time, make visible changes. Address obvious pain points. Remove duplicative work. Improve decision-making. Retire outdated processes. Look for two to three early wins that demonstrate, I heard you, and Im doing something about it.
It might be simplifying handoffs across teams. Clarifying a decision bottleneck that frustrates everyone. Or creating a scorecard that communicates the teams results and impact.
For Andrew, it meant aligning the teams priorities with what the business cared about most and providing a skills training workshop to help the team deliver. The shift was immediate: people felt more focused, confident, and seen.
4. Define What Progress Looks Like
After a restructuring or leadership change, one question lingers: Is this working?
Start by defining what progress looks like, before others define it for you. Dont wait for long-term KPIs. Identify a few short-term markers that signal success and that your team can rally around.
One leader we coached focused on three simple indicators during her first 90 days:
Reduced rework
Fewer escalations after meetings
Shorter turnaround times between handoff and next steps
They were simple, measurable, and meaningful to the team.
As progress builds, make it visible. Dont assume stakeholders will notice. Articulate clearly whats changing, why it matters, and whos driving that change.
5. Communicate Strategy Up, Down, and Across
Once youve clarified whats changing, dont stop there. You need to communicate in all directions:
Upward: Keep senior leaders informed about whats working, whats not, and what support you need. Dont assume they understand the lift. Share context, not complaints.
Downward: Help your team connect the dots between new priorities and business outcomes. Remind them why it matters. Reinforce your strategy through ongoing conversations, not just onetime town halls.
Across: Reset expectations with peers and cross-functional partners who may still be operating from old assumptions. Clarify whats changing and the new ways of working together.
Strategy sticks when it’s reinforced with repetition, real examples, and ongoing dialogue.
A plan that works
Youve inherited a team mid-transition. Expectations are high. Trust is low. And the clock is ticking. You dont need all the answers, but you do need a plan. Audit the system. Invite candor. Surface strengths. Define success. Communicate with intention.
Just like Andrew, your early moves matter. Thats how you turn a messy transition into a meaningful reset.
