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Heretical Take   Jun 8, 2026 · 9 min read

The reorg that changed nothing: why restructuring is the most expensive way to avoid a decision

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Every two years, in almost every company past a hundred and fifty people, the same scene plays out. A new org chart appears in a deck. Boxes move. Titles shift. People rehearse a new vocabulary for what they already do. There's an all-hands explaining the rationale, a Q&A with carefully neutral answers, and a wave of one-to-ones where managers reassure their reports that nothing fundamental is changing for them personally. Six months later, the same complaints surface in the same meetings: priorities unclear, dependencies unmanaged, work disconnected from strategy, the cross-functional thing nobody owns.

The reorg didn't fail. The reorg was never the answer.

What a reorg can actually solve

It's worth being fair to restructuring as a tool. Reorgs do solve one specific problem well: a genuine structural mismatch between the work the company has decided to do and the way people are grouped to do it. If you've built a new business line and the people responsible for it are scattered across three functions reporting to leaders whose incentives point elsewhere, reorganising into a unit that owns the line end-to-end is the right move. If you've shifted from a regional model to a product model and the org chart still reflects the regions, restructuring catches the org up to the strategy.

When the structural mismatch is the actual problem, reorgs work. They are uncomfortable, they cost political capital, and they're worth it.

The trouble is that most reorgs happen without the first step. The company hasn't decided what work it's doing. It hasn't named the bets, prioritised between them, or written down what it's choosing not to pursue. It's hoping that re-grouping people will somehow surface a decision leadership wasn't willing to make in any other forum.

What reorgs are usually a substitute for

If you look closely at the announced reorgs that produce nothing six months later, you'll almost always find one of four avoidances underneath.

A focus decision nobody wanted to own. The company is trying to do too many things. Picking three and stopping the rest is the actual answer. Instead, the reorg redistributes the same too-many-things across a different set of boxes, and the overload survives the new structure intact.

A do-not list nobody wanted to publish. There are commitments the company has been carrying that don't fit the strategy, but cutting them creates internal and external friction. The reorg lets leadership pretend those commitments are being "rationalised" by the new structure, when in fact they're still on the team's plates, just under different reporting lines.

A capacity argument nobody wanted to have. Senior leaders disagree about whose function deserves more headcount. Rather than have the fight, leadership reorganises in a way that lets each side claim a partial win. The total capacity hasn't changed. The disagreement hasn't been resolved. It will surface again in three quarters.

A leader nobody wanted to performance-manage. The classic. There's an executive whose function isn't delivering, and rather than make the hard call about that person, the company reorganises around them. They get a new title, the scope shifts, the underperformance gets distributed across a wider surface area. Nothing improves. Everyone in the room knows what happened.

A reorg without a prior strategic decision is just a reshuffling of the same ambiguity into different boxes. The ambiguity is the load-bearing element. Moving boxes doesn't change it.

The cheaper version

Before any structural change, write down four things. Which three bets is the company funding next year. Which work feeds each bet. Who owns the outcome for each. What's the do-not list — the things we are explicitly choosing not to pursue, and the existing commitments we are ending.

If you can't answer those four questions, a reorg won't help. It will delay the conversation by a quarter, burn political capital you'll need later, and exhaust the organisation in the process. Reorgs are tiring. They consume executive attention for months. They produce a tax on every team in the form of new managers learning new contexts, dotted lines being renegotiated, and the slow rebuilding of working relationships across the new seams.

If you can answer those four questions, you'll usually find the existing structure is closer to fit-for-purpose than you thought. Most reorgs that follow a real strategic decision end up moving five to ten people, clarifying two or three reporting lines, and leaving the bulk of the org alone. The decision did the work. The structure caught up.

The reorgs that produce sweeping new charts and dozens of role changes are almost always the ones where the decision was avoided and the structure is being asked to do the deciding. That doesn't work. Structure cannot make a choice the leadership team won't make.

Why this keeps happening

Reorgs persist as an avoidance pattern because they produce visible motion without requiring an uncomfortable conversation. The board sees activity. The team sees change. The CEO can credibly say "we're addressing it." The actual underlying problem — the unmade decision — gets to stay unmade for another cycle.

It's also a status pattern. Restructuring is one of the few executive activities that visibly demonstrates power. New chart, new names, new lines. The CEO who restructures looks decisive. The CEO who names three bets, kills two product lines, and changes nothing about the org chart looks like they're not doing anything — which, in a leadership culture that confuses motion with progress, is the harder political position to take.

The Vindaris view

Structure follows strategy, not the other way around. An execution layer that makes the strategy-to-work connection visible removes the strongest argument for restructuring in most cases — because the misalignment people blame on the org chart is almost always a visibility problem dressed up as a structural one. When you can see which work feeds which bet, who owns each outcome, and where the dependencies live, you usually discover the existing structure is fine and the missing thing is a decision. Make the decision. The chart will tell you, afterwards, what small adjustments it actually needs. It will be a much shorter list than the one you would have built in the absence of clarity.