Human dynamics
Restructuring / Turnaround
While costs are cut and strategies realigned, human dynamics are frequently overlooked. That’s where restructuring efforts and turnarounds often fail. We help leaders create orientation, manage sensitive stakeholder dynamics and communicate difficult decisions in a way that protects trust, momentum and operational focus.
We help you to stabilise performance in critical moments.
Restructuring is usually necessary to secure the future viability of companies in crisis. An organization must undergo a 180-degree turnaround in a very short time. Costs must be drastically reduced, often jobs cut, parts sold off, and strategies redeveloped or adapted.
In this phase, even top restructuring experts can overlook one aspect: the employees who (initially) remain with the company. After months or even years of uncertainty and anxiety, they are usually completely demoralized and no longer feel any inner connection to the company. Sick leave rises and performance remains low. Working to rule becomes the norm, and hardly anyone goes the extra mile.
This poses a high risk, as these typical parameters correlate with a simultaneous sharp increase in the need for overtime and extra work. As a result, the organization slips deeper into crisis in the medium term. Anyone undertaking restructuring should therefore carefully consider not only the crucial economic and legal aspects, but also the social & psychological dimensions.
Why human dynamics matter in restructuring
Your restructuring / turnaround should not fail due to human dynamics. Therefore, we help you to focus on social and emotional aspects. Two are particularly important:
Roller coaster of emotiont — Those affected develop fears, wonder what will happen to their jobs, and whether their qualifications still match their new tasks. They go through the classic roller coaster of emotions associated with change.
Dysfunctional teams — New structures lead to new processes and relationships. What used to be well-established and run smoothly often comes to a standstill after a reorganization. Mistakes are made, and new teams have to find their feet.
Our four-phase model
To ensure that restructuring does not fail because of human dynamics, viadoo provides support with a proven, systematic process model. Based on an existing restructuring plan with its operational and financial measures, we develop the corresponding restructuring architecture. This ensures that you are well equipped to adapt quickly to restructuring, resolve conflicting goals, and manage internal dynamics.
1
Analysis of Restructuring Plan & Humans
We understand the restructuring plan. We then analyze the stakeholders and what emotions and reactions can be expected from them. We also develop a valid answer to the question of why restructuring is now inevitable. Together with top management, we then develop a vision of the future as a guide for everyone who will remain on board.
2
Analysis of Humans & Organization
We identify qualified change agents or train potential ones. At the same time, we work with the chief restructuring officer (CRO) to set up a restructuring management office (members, roles, governance, etc.). This allows us to identify areas of conflict at an early stage and facilitate solutions.
3
Conception of Restructuring Architecture
Based on the previous results, we formulate the new story and develop the restructuring management architecture. This includes plans for stakeholder participation, sponsor involvement, necessary training measures, and target group-specific, agile change communication (topic and action plan). In this way, we strengthen trust in the change and in the executives.
4
Realization of Restructuring
We implement our restructuring architecture in line with the restructuring plan (technical level). This includes among other things conflict mediation, overcoming dysfunctional teams, and soliciting feedback. In accordance with the agile communication strategy, we also provide ongoing information about even small steps forward. In the end, we actively contribute to the restructuring success!
What you gain
Thanks to our analytical procedure and holistic approach, we are able to
increase the changes of success to 95%,
flatten the classic change curve (see viadoo Change Integral),
reduce both the usual productivity losses and the unwanted fluctuations.
Featured success stories
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Further aspects worth considering
1. Keep pace high
We are often asked whether it would be possible to slow down the pace of ongoing restructuring. This would give those affected more time to adjust to the future situation. Although well-intentioned, such a request ultimately leads to an unnecessarily long transition phase full of uncertainty, fear, and limited performance. We therefore recommend swift implementation, because after that, day-to-day business will resume, which usually takes time to get back into the swing of things anyway.
2. Do a past check
Some consultants say that you shouldn’t dwell on the past when restructuring. But every organization has a collective memory. If you fail to recognize this, you won’t understand why employees develop fears and withdraw their loyalty. We therefore strongly recommend taking the time to investigate the collective past. This also allows to check whether all employees have already fully experienced a previous restructuring, what experiences they gained from it, and how motivated they are.
3. Choose a smart name
It can be helpful to give restructuring programs a name for internal (and, if necessary, external) communication. Industrial history is literally littered with such names. Typically, these names are devised by agencies or management. But here, too, it can be helpful to involve the employees in the process. This makes it easier for them to identify with the name than with one imposed from above, which is quickly turned into a joke internally and thus discredits the entire restructuring effort.
4. Communicate early
Top executives should develop their restructuring plans in small groups. They should then communicate their plans to those affected as early and openly as possible to prevent rumors. Furthermore, it can be helpful to consult experts within the own workforce on specific aspects of the restructuring plans. The aim is not to have them fundamentally question the plans, but rather to have them evaluate them on the basis of their professional expertise so that the plans can be adjusted if necessary.
5. Create a team spirit
As the reorganization progresses, it is the task of internal communication to build a team spirit. This gives those affected the opportunity to develop loyalty and identification with the newly structured organization. We have been designing and implementing such measures for many years. At the heart of our approach is multimedia (business) storytelling, because identity is created through stories.
Top 5 benefits of human-centered restructuring / turnaround approach
Stabilized leadership
A restructuring / turnaround puts executives under extreme pressure. A human-centered turnaround expert helps leadership teams stay aligned, communicate clearly and make difficult decisions without losing trust across the organization.
Reduced resistance
Restructuring / turnaround often triggers fear, rumors and defensive behavior. viadoo helps identify emotional and political dynamics early, address concerns openly and turn resistance into constructive participation where possible.
Protected key talent
In uncertain phases like restructuring / turnaround, high performers and critical experts are often the first to disengage or leave. A human dynamics focus helps secure commitment, clarify perspectives and protect the capabilities needed for recovery.
Faster execution
Even the best restructuring / turnaround plan fails if people do not understand, accept or act on it. viadoo translates strategic decisions into clear roles, responsibilities, communication and leadership routines that accelerate implementation.
Sustainable recovery
A successful turnaround is not only about cutting costs or redesigning structures. It also requires new behaviors, stronger accountability and a culture that supports performance beyond the crisis.
Frequently asked questions
In practice, both often overlap. A successful turnaround usually requires restructuring measures, while restructuring becomes particularly critical when declining performance threatens the company’s future viability. On a theoretically level, restructuring usually refers to the systematic realignment of a company’s financial, operational, organizational or strategic setup, whereas a turnaround is typically more urgent and performance-driven (company needs to regain liquidity, profitability or market confidence within a limited timeframe).
Many restructuring programs are financially sound on paper but fail in execution because the organization does not move with the required speed, clarity and discipline. Typical reasons include unclear decision rights, weak leadership alignment, insufficient communication, resistance from key stakeholders, overloaded management teams, conflicting priorities and a lack of ownership in the business. Employees and executives need to understand what must change, why it must change, how decisions will be made and what new behaviors are expected. That is why restructuring needs both analytical rigor and strong management of human dynamics.
Leadership alignment is one of the most critical success factors in a restructuring / turnaround effort. In high-pressure situations, employees closely observe whether the top team speaks with one voice, makes consistent decisions and follows through on priorities. If leaders send mixed signals, avoid difficult conversations or protect local interests, the organization loses confidence and momentum. Effective leadership alignment clarifies the turnaround ambition, non-negotiable priorities, decision rights, communication principles and behavioral expectations. It also helps executives manage tension, uncertainty and resistance without losing speed or credibility.
Communication during restructuring / turnaround must be clear, honest, timely and carefully sequenced. Employees, works councils, managers, investors, customers and other stakeholders need different levels of information, but they all need orientation and trust in the process. Good restructuring / turnaround communication explains the business rationale, the expected impact, the decision process, the timeline and the support available to affected people. It also equips leaders and managers to handle difficult questions. Effective communication cannot remove all uncertainty, but it can prevent rumors, reduce fear, protect productivity and strengthen the organization’s ability to act.
Performance and key talent are protected when the company creates clarity about priorities, roles, responsibilities and future direction as early as possible. In a restructuring situation / turnaround, high performers are often the first to assess their options, especially if they perceive uncertainty, weak leadership or declining morale. Companies should therefore identify critical roles and key people, stabilize leadership communication, reduce organizational noise and make visible which capabilities are needed for the future. At the same time, performance management must become more focused: fewer priorities, faster decisions, clear accountability and regular steering routines. A turnaround succeeds when the organization not only cuts costs, but also preserves the people and capabilities required for recovery.
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