Restructuring in Local Government: Lessons from the Frontline

By Jane Dukes – Senior HR Professional & Organisational Change Leader

Restructuring within local government is far from a new phenomenon. It has been a recurring theme for decades, driven by a complex interplay of factors: tightening budgets, evolving political priorities, legislative reform, technological innovation, and broader systemic pressures. Each wave of change brings its own challenges and opportunities, and with the government’s latest reorganisation strategy, yet another chapter is about to unfold.

When implementing a new Target Operating Model (TOM), the organisational structure often becomes the most visible and arguably the most sensitive element of transformation. It is the part that staff, stakeholders, and the public notice first. But successful restructuring is not simply about rearranging boxes on an organisational chart. It requires clarity of purpose, credibility in design, and above all, careful execution to maintain trust and minimise disruption.

Restructuring is as much about people as it is about process. It demands a nuanced understanding of culture, capability, and communication. Decisions taken during this phase can shape organisational performance for years to come, influencing everything from service delivery to employee engagement.

My own journey in this field began in 1999 at Staffordshire County Council, where I served as Head of HR during a period of significant organisational change. That experience laid the foundation for my approach to restructuring balancing strategic imperatives with human impact. A decade later, I applied those lessons in an interim capacity at Cheshire East Council, leading a major restructure of the Place Directorate during the 2009 Local Government Review (LGR). This was a time of intense complexity, requiring not only technical expertise but also resilience and adaptability.

What did I learn from these experiences? That successful restructuring hinges on three critical principles:

• Engagement – Involve stakeholders early and often. Transparency builds trust.

• Alignment – Ensure structural changes support strategic objectives, not just short-term fixes.

• Empathy – Recognise the human dimension. Change is unsettling; communication and support are non-negotiable.

As local government faces yet another wave of transformation, these lessons remain as relevant as ever. Restructuring is not a one-off event it is a continuous process of adaptation. Done well, it can unlock efficiency, foster innovation, and create organisations that are fit for the future. Done poorly, it risks eroding morale and undermining service delivery.

Context: The 2009 Cheshire Local Government Review (LGR)

The 2009 LGR was one of the most significant structural changes in Cheshire’s local government history. It dissolved seven district councils and one county council, replacing them with two new unitary authorities: Cheshire East (CE) and Cheshire West and Chester (CWAC).

At Cheshire East, I worked alongside the Director of Place within a directorate of approximately 1,400 employees, tasked with delivering substantial savings and rationalising structures riddled with duplication inherited from four merging organisations. This was not just a technical exercise it was a cultural and operational transformation under intense public scrutiny.

What I Delivered

I didn’t just design the change I authored, led, and actively delivered a comprehensive change plan that addressed both structural rationalisation and cost reduction, ensuring consistency, legal compliance, and clarity for all stakeholders.

Key components included:

• A robust business case and consultation strategy to underpin decisions and maintain transparency

• Section 188 and HR1 processes to ensure statutory compliance

• Recruitment-based population model (slots, competitive slots, etc.) to manage workforce allocation fairly

• Detailed briefings for trade unions and the HR senior team to secure alignment

• Communication templates and FAQs to support managers and reassure staff

• Voluntary redundancy processes and TUPE advice on terms and conditions to protect employee rights

I secured buy-in from the Director of Place and the Senior Leadership Team, then jointly presented the strategy to trade unions for feedback before launch building trust and reducing resistance.

Outcome

• Approximately 80 staff exited the organisation through voluntary redundancy and other processes

• Estimated savings: £2.3 million delivered against target

• A streamlined, legally compliant structure implemented successfully, positioning the directorate for future efficiency and service improvement

What Do I Think Matters Most When You Have a Restructure to Deliver?

Restructuring is one of the most challenging leadership tasks in local government. It’s not just about changing structures it’s about guiding people through uncertainty while maintaining service delivery and organisational integrity. Over the years, I’ve learned that success depends on a combination of precision, clarity, empathy, and relentless communication. Here are the principles I consider essential:

Precision Planning

People need confidence in the process. A robust business case, a clear rationale, and a detailed timetable are non-negotiable. Planning is the anchor that prevents chaos. Without it, even the best intentions unravel. Tip: Build contingency into your timeline unexpected issues will arise.

Clarity of Roles

Restructuring is a team effort. Define who does what HR, change leads, managers early and explicitly. Ambiguity breeds confusion; clarity builds momentum. Example: In one restructure, we created a simple RACI matrix to ensure accountability and avoid duplication.

Early Engagement with Trade Unions

No surprises. Early dialogue reduces resistance and builds trust. Trade unions are not obstacles they are partners when engaged with honesty and respect. Lesson: Invite unions into the conversation before decisions are finalised. It signals respect and often surfaces practical solutions.

Proper Consultation

Consultation is more than a legal requirement it’s an opportunity to listen, adapt, and improve outcomes. Be open to feedback; it strengthens the final design. Reality Check: If you treat consultation as a tick-box exercise, you’ll lose credibility fast.

Constant Communication

Silence breeds speculation. Stay visible, consistent, and proactive. Use multiple channels briefings, FAQs, drop-ins to keep people informed and reassured. Why it matters: In the absence of facts, people create their own narratives. Control the narrative by being transparent.

Visible & Skilled Leadership

Leaders must show up with empathy. In one organisation, the culture had become overly transactional focused on delivery at the expense of connection. Managers were struggling to engage with their teams. We introduced emotional intelligence training to help leaders reconnect at a human level, rebuild trust, and lead through change with both clarity and compassion. Key takeaway: Technical competence is not enough leaders need relational skills to navigate uncertainty.

Employee Support

Practical support matters: redundancy calculators, mental health first aiders, drop-in sessions, and outplacement services can make a difficult process more humane. Why? Because restructuring impacts livelihoods. Support signals care and protects organisational reputation.

Get the Basics Right

Accurate letters and final payments are non-negotiable. Errors here undermine trust and credibility instantly. Tip: Double-check every communication small mistakes have big consequences.

A Key Learning I Carry Forward

Be transparent about the impact on every role. It allows people to raise concerns early and gives you the chance to fix inconsistencies before they escalate. Transparency is not just ethical it’s strategic. Bottom line: People can handle bad news better than uncertainty.

Since Then…

Since 2009, I’ve successfully led numerous restructures and redundancy programmes across local authorities always anchored in clarity, compliance, and compassion. This experience has reinforced a truth I carry into every assignment: restructures are never just operational they are emotional, cultural, and reputational. They touch the very fabric of an organisation, influencing trust, morale, and identity. When handled with clarity, courage, and care, a restructure can do more than deliver savings or streamline processes. It can reset the organisation, rebuild confidence, and strengthen relationships. Done well, it becomes a catalyst for renewal not just a response to pressure.