Change breeds uncertainty, and uncertainty, left unchecked, brews anxiety among your advisors and staff. Straight up, nobody loves a reorg announcement. However, strategic, planned communication can make the difference between a smooth transition and total chaos. Here’s how to approach it without losing your team or your sanity.
1. Do your homework: prep like the pro you are
Before you send a single memo, check that you and all of the firm's leadership know the why, the what, and the when of the restructuring. What questions will advisors, ops staff, and client service teams inevitably ask?
- Map it Out: Create a detailed visual representation of the new structure, including who reports to whom, key responsibilities, and how it all fits within the broader context of your business. Don't make people guess.
- Anticipate the Inquisition: Draft answers to likely FAQs before they're asked. Equip team leads with this info. Vague answers fuel the rumor mill.
- Have a Rollout Plan: Figure out how and when you'll communicate each piece. This isn't the time to wing it with spontaneous announcements.
Create a communications plan for rolling out the restructuring and associated communication deliverables. For assistance creating a change communications plan, send us a note.
2. Rip off the band-aid: communicate early and often
Once the plan is solid (really solid!), tell your team. Don't wait for whispers and "water cooler" speculation to take over – that's how misinformation spreads like wildfire.
- Choose Your Channels: Use a mix – firm-wide emails, town hall meetings (virtual or in-person), video messages from leadership. Tailor it to your firm's culture.
- Be Clear & Concise: Explain why the change is happening, the expected timeline, and what it means for the team. No corporate jargon, please.
- Don't Go Silent: One announcement isn't enough. Provide regular updates as to how the restructure is progressing, and reiterate important information to ensure that your message is understood.
3. Embrace the awkward: encourage open, transparent discussion
Make it obvious that questions are welcome – even the tough ones. Foster a two-way street by explicitly inviting questions in all communications and creating safe channels for people to voice concerns. Prioritize answering honestly: if you know the answer, give it straight. If you don't know the response, commit to finding out and follow up.
If the question points to private information that cannot be shared, be transparent about why rather than dodging the issue. And remember, no sugarcoating: While maintaining a positive outlook on the firm's future is important, truthfulness builds essential trust during turbulent times. Honesty ensures the narrative comes credibly from leadership, as the truth is bound to come out anyway.
4. Handle the hard stuff: address layoffs with dignity
Sometimes restructuring means layoffs. It’s tough, impacts morale, and there’s no easy way around it.
- Be Swift & Private: If cuts are necessary, handle them quickly and consolidate them rather than drawing it out. Inform affected individuals privately and respectfully.
- Offer Support: Consider providing resources like outplacement services or severance packages.
- Inform the Team: Once affected individuals have been notified, inform the remaining team that the process is complete. Briefly mention support offered (if appropriate) and, crucially, reassure them about their own roles and the firm's path forward. Explain why their contributions are vital to the new structure's success.
5. Don’t forget your clients
Getting your internal team aligned is absolutely a top priority. But remember, the people on the outside, your clients and key stakeholders, need to hear from you too. Make a list of anyone who might be impacted by the changes. Then, reach out and clearly explain what’s shifting, how it will affect their experience with your firm, and why this is ultimately a good move for them. If it makes sense for your situation, think about sending out a press release to share the news, the reasons for the restructuring, and the positive outcomes you're aiming for.
Though you don’t need to repeat what the initial change was, build in follow-up communications with customers in your communications plan to let them know about your early successes to further demonstrate you made a change with your customers top of mind.
Moving Forward: Turn Restructure Dread into Positive Momentum
Team restructures require a great deal of work, and you can't treat this like a sprint. Planned, purposeful action is your best bet to ensure the reorganization delivers the positive outcomes you intended, without completely demoralizing your team or confusing your clients. If mapping out a clear communication plan for your RIA's restructure feels like one task too many, Craft Impact can help.