Flevy Management Insights Q&A
How can organizations maintain customer service and satisfaction levels during periods of significant reorganization?
     David Tang    |    Reorganization


This article provides a detailed response to: How can organizations maintain customer service and satisfaction levels during periods of significant reorganization? For a comprehensive understanding of Reorganization, we also include relevant case studies for further reading and links to Reorganization best practice resources.

TLDR Maintaining customer service during reorganization involves Effective Communication, Employee Engagement and Training, and leveraging Technology, with a focus on transparent updates, employee morale, and digital tools to meet customer needs efficiently.

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Before we begin, let's review some important management concepts, as they related to this question.

What does Effective Communication Strategies mean?
What does Employee Engagement and Training mean?
What does Leveraging Technology for Customer Service mean?


Organizations often face the challenge of maintaining customer service and satisfaction levels during periods of significant reorganization. Reorganization, whether due to Strategic Planning, Digital Transformation, or Operational Excellence initiatives, can disrupt the usual processes that ensure customer satisfaction. However, with careful planning and execution, organizations can navigate these changes without negatively impacting their customer service.

Communicate Effectively and Transparently

One of the most critical steps in maintaining customer service during reorganization is effective and transparent communication. Customers appreciate being kept in the loop, especially if the changes might affect their experience or the services they receive. Organizations should develop a communication strategy that includes regular updates about the reorganization process, how it will impact services, and what measures are being taken to minimize any negative effects. This approach not only builds trust but also helps in managing customer expectations during the transition period.

For instance, when a major retail chain was undergoing reorganization, they used social media, emails, and their website to communicate changes in store layouts and product availability. This proactive communication helped in reducing customer frustration and maintaining loyalty. Furthermore, frontline employees should be trained and equipped with the necessary information to answer customer queries regarding the reorganization. This ensures that the messaging is consistent across all channels.

Moreover, feedback mechanisms should be put in place to gather customer opinions and concerns about the reorganization. This feedback can be invaluable in adjusting strategies in real-time to address any emerging issues. For example, implementing a simple survey at the point of sale or via email can provide insights into customer sentiment, allowing for swift action to rectify any problems.

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Focus on Employee Engagement and Training

The link between employee satisfaction and customer satisfaction is well-documented. Engaged employees are more likely to go the extra mile to ensure customer satisfaction. During periods of reorganization, it's crucial to keep employee morale high. This can be achieved through transparent communication about the reasons for the reorganization, the expected outcomes, and how it will benefit them in the long run. Providing employees with the necessary training and resources to adapt to new roles or processes is also essential.

For example, a study by McKinsey & Company highlighted the importance of focusing on 'soft' factors such as leadership and employee engagement during organizational transformations. The study found that organizations that focused on these areas were more likely to report successful transformations. This success translates into better customer service as engaged employees are more committed to the organization's goals, including maintaining high levels of customer satisfaction.

Additionally, recognizing and rewarding employees who go above and beyond in their efforts to maintain customer service during the reorganization can be a powerful motivator. Incentive programs can be tailored to encourage behaviors that align with the organization's customer service objectives. For instance, implementing a recognition program for employees who receive positive feedback from customers can reinforce the importance of customer service during the transition period.

Leverage Technology to Enhance Customer Service

Technology can play a pivotal role in maintaining and even enhancing customer service during reorganization. Digital tools and platforms can help in streamlining processes, improving communication, and providing personalized customer experiences. For example, implementing a Customer Relationship Management (CRM) system can help in managing customer interactions more effectively, ensuring that customer needs are met promptly and efficiently.

Organizations can also use technology to provide self-service options for customers, reducing the need for direct interaction with employees who may be busy with reorganization tasks. For instance, chatbots and AI-driven support can handle routine inquiries, freeing up human resources to deal with more complex issues. This not only maintains but can improve customer service levels by providing instant responses to customer queries.

Moreover, leveraging data analytics can provide insights into customer behavior and preferences, allowing organizations to tailor their services to meet customer needs better. For example, analyzing customer feedback and interaction data can identify areas for improvement, helping organizations to prioritize changes that will have the most significant impact on customer satisfaction. This data-driven approach ensures that decisions made during the reorganization are aligned with customer expectations and needs.

In conclusion, maintaining customer service and satisfaction during significant reorganization requires a multifaceted approach. Effective communication, focusing on employee engagement, and leveraging technology are key strategies that organizations can employ. By prioritizing customer service and making it a central aspect of the reorganization strategy, organizations can not only maintain but potentially enhance their levels of customer satisfaction during these challenging periods.

Best Practices in Reorganization

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Explore all of our best practices in: Reorganization

Reorganization Case Studies

For a practical understanding of Reorganization, take a look at these case studies.

Operational Excellence in Healthcare: A Restructuring Strategy for Regional Hospitals

Scenario: A regional hospital is undergoing restructuring to address a 20% increase in patient wait times and a 15% decrease in patient satisfaction scores, with the goal of achieving operational excellence in healthcare.

Read Full Case Study

Cloud Integration Strategy for IT Services Firm in North America

Scenario: A prominent IT services firm based in North America is at a crucial juncture requiring a strategic reorganization to address its stagnating growth and declining market share.

Read Full Case Study

Organizational Restructuring for a Global Technology Firm

Scenario: A global technology company has faced a period of rapid growth and expansion over the past five years, now employing tens of thousands of people across multiple continents.

Read Full Case Study

Turnaround Strategy for Telecom Operator in Competitive Landscape

Scenario: The organization, a regional telecom operator, is facing declining market share and profitability in an increasingly saturated and competitive environment.

Read Full Case Study

Restructuring for a Multi-Billion Dollar Technology Company

Scenario: A multinational technology company, with a diverse portfolio of products and services, is grappling with a bloated organizational structure and inefficiencies.

Read Full Case Study

Workforce Restructuring in the Aerospace Sector

Scenario: The organization is a leading aerospace component manufacturer facing significant margin pressures due to a bloated organizational structure and increased competition.

Read Full Case Study

Explore all Flevy Management Case Studies

Related Questions

Here are our additional questions you may be interested in.

How do you measure the success of a turnaround strategy, and what key performance indicators (KPIs) should companies focus on?
Success of a turnaround strategy is gauged through Financial, Operational, and Market-Driven KPIs like Revenue Growth, Profit Margins, Cash Flow, Inventory Turnover, Customer Satisfaction, and Market Share, aligning with strategic goals for sustainable growth. [Read full explanation]
How is the rise of remote and hybrid work models impacting reorganization strategies?
The rise of remote and hybrid work models is reshaping reorganization strategies, necessitating changes in Organizational Structures, Talent Management, and Operational Efficiency and Innovation, guided by insights from leading consulting firms and market research. [Read full explanation]
What are the implications of insolvency proceedings on a company's operational continuity?
Insolvency proceedings disrupt an organization's Operational Continuity, necessitating shifts in Strategic Planning, impacting Stakeholder Relationships, and requiring comprehensive Operational and Financial Restructuring to mitigate negative effects and potentially emerge stronger. [Read full explanation]
What are the most common pitfalls in executing a turnaround strategy, and how can they be avoided?
Avoiding common pitfalls in executing a turnaround strategy involves a clear Strategic Vision, effective Stakeholder Engagement and Communication, and addressing Operational Issues, guided by strong Leadership and a commitment to Change Management. [Read full explanation]
What impact do emerging global economic trends have on the strategies for corporate restructuring?
Emerging global economic trends necessitate organizations to restructure for Digital Transformation, Globalization, and Sustainability, ensuring resilience and long-term success in a dynamic economic landscape. [Read full explanation]
How can companies ensure that reorganization efforts align with long-term sustainability goals?
Discover how Strategic Planning, Change Management, and Culture ensure reorganization aligns with Sustainability Goals, boosting resilience and competitiveness. [Read full explanation]

Source: Executive Q&A: Reorganization Questions, Flevy Management Insights, 2024


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