Restructuring Without Losing the Heart: A Self-Help Guide for Local Government Leaders

Restructures in local government are not just common they are inevitable. Whether prompted by tightening budgets, shifting political priorities, legislative reform, or the pursuit of better outcomes for residents, they form part of the ongoing evolution of public service delivery. Yet, while the rationale for change may be clear on paper, the human impact is often far more complex. Behind every restructure are people dedicated professionals who have invested years in their roles, built relationships, and developed a sense of identity within their teams. Change, even when necessary, can trigger anxiety, resistance, and a sense of loss. Staff may worry about job security, feel disconnected from the new direction, or mourn the departure of familiar colleagues and routines.

So how do you restructure a department without losing the heart and minds of your team? How do you communicate change in a way that builds trust, not fear? And how do you ensure the restructure actually delivers improved outcomes not just on paper, but in the lived experience of staff and residents? This blog offers a practical, self-help guide for those leading departmental restructures in UK local authorities. Drawing on Truth About Local Government research, real-life case studies, and proven tools for engagement, it aims to support leaders in delivering change that is not only strategic but human-centred, inclusive, and sustainable.

Why Restructure?

Restructuring in local government is often framed as a strategic necessity but it’s rarely a simple fix. According to Truth About Local Government research (2025), 68% of councils undertook at least one departmental restructure in the past three years. The top three drivers were:

• Service optimisation (42%) – aiming to streamline delivery, reduce duplication, and improve resident outcomes.

• Budgetary pressures (36%) – responding to funding reductions, inflationary pressures, and rising demand.

• Leadership changes (22%) – new directors or chief executives reshaping teams to reflect their vision and priorities.

However, the reality is more nuanced. Only 54% of those restructures were rated as “successful” by internal staff surveys. And success was not just about meeting financial or operational targets it was about how staff experienced the change. The gap between intention and impact is often rooted in three critical areas:

• Communication: Staff frequently report feeling uninformed or misled during restructures. Poor communication breeds mistrust and resistance.

• Culture: Restructures that ignore team dynamics, values, and informal networks often destabilise morale and productivity.

• Clarity: Ambiguity around roles, responsibilities, and future direction can lead to confusion and disengagement.

Further Truth About Local Government data reveals that:

• 31% of restructures led to a temporary drop in service performance.

• 42% of staff involved in unsuccessful restructures reported a decline in morale lasting over six months.

• Only 19% of councils conducted a formal post-restructure review to assess impact and lessons learned.

These figures highlight a critical truth: restructuring is not just a technical exercise it’s a human one. Leaders must approach it with strategic intent, emotional intelligence, and a commitment to transparency.

The Hidden Cost of Failed Restructures

While restructures are often framed as opportunities for efficiency and innovation, the reality is that many fail to deliver on their promises and some actively harm the organisations and communities they aim to serve.

According to Truth About Local Government research (2025):

• 1 in 3 restructures in UK local authorities are considered unsuccessful by internal staff surveys.

• 42% of staff involved in failed restructures report a decline in morale lasting more than six months.

• 28% of councils undergoing restructure experienced a temporary drop in service performance, particularly in high-pressure areas like housing and adult social care.

• Only 19% of restructures included a formal post-implementation review process.

These findings are echoed by external studies:

• A report by the District Councils’ Network warns that poorly planned reorganisations can “create larger versions of dysfunctionality” and fail to deliver meaningful public service reform.

• The Social Market Foundation found that 69% of local government managers face critical obstacles to doing their jobs, often exacerbated by unclear restructure processes and poor leadership communication.

• UNISON estimates that some council reorganisations could cost up to £100 million in upfront expenses, with risks to staff wellbeing and service continuity.

Case Study 1: Warwickshire County Council – Restructuring for Rail Investment

In 2024, Warwickshire County Council restructured its Place Directorate to better align with its ambitious rail infrastructure programme. The restructure involved merging transport planning, economic development, and capital delivery teams.

What worked:

• Early engagement with staff through workshops.

• Clear narrative linking restructure to tangible resident benefits.

• Use of external facilitators to support emotionally charged conversations.

Outcome: Staff satisfaction rose by 18% post-restructure, and project delivery timelines improved by 22%.

Case Study 2: Rushcliffe Borough Council – Keeping Culture Intact

Rushcliffe’s restructure of its Environmental Services team in 2023 aimed to improve responsiveness to neighbourhood-level issues. The council appointed internal “change champions” and held weekly drop-in sessions.

What worked:

• Emotional mapping exercises to understand staff concerns.

• Peer-led storytelling sessions to share positive change experiences.

• Leadership visibility throughout the process.

Outcome: Staff retention remained stable, and resident satisfaction with waste services increased by 12%.

Step 1: Start with Outcomes, Not Org Charts

One of the most common mistakes in local government restructures is starting with the organisational chart moving boxes, renaming roles, and redrawing reporting lines before clearly defining what the restructure is meant to achieve. This approach often leads to confusion, duplication, and missed opportunities. Instead, begin with outcomes. What are you trying to improve for residents, communities, and the organisation itself? Are you aiming to reduce response times, improve service integration, increase resident satisfaction, or deliver a new strategic priority?

Ask yourself and your leadership team:

• What do residents need more or less of?

• What are our statutory obligations, and are we meeting them efficiently?

• Where are the current bottlenecks, overlaps, or gaps in service delivery?

• What does success look like in 12 months, and how will we measure it?

Use a combination of service performance data, resident feedback, and staff insights to shape your vision. This evidence-based approach ensures that the restructure is grounded in real need, not assumptions. Once the desired outcomes are clear, you can design a structure that enables them rather than forcing outcomes to fit a pre-designed structure. This approach also helps build credibility with staff. When they see that the restructure is driven by purpose rather than politics or cost-cutting alone, they are more likely to engage constructively with the process.

Step 2: Engage Early, Honestly and Often

Restructures often fail not because the strategy is flawed, but because the communication is poor. Staff who feel blindsided, excluded, or misled are far more likely to resist change, disengage, or leave altogether. The Truth About Local Government survey found that in successful restructures:

• 81 percent of staff felt “informed and involved” from the outset.

• 73 percent said their views were “genuinely considered” in shaping the final structure.

Early engagement means involving staff before decisions are finalised. This could include informal conversations, structured workshops, or anonymous feedback channels. It’s not just about consultation it’s about co-creation. Honest communication is equally vital. Avoid vague language like “efficiency” or “modernisation” without context. Be clear about the drivers of change, the risks, and the opportunities. If budget pressures are a factor, say so. If leadership priorities have shifted, explain why. Use multiple channels to reach different audiences town halls, team meetings, email updates, intranet posts, and one-to-one conversations. Consistency across these channels is key. Mixed messages from different leaders can undermine trust and fuel anxiety.

Finally, make engagement ongoing. Don’t stop communicating once the restructure is announced. Keep staff updated throughout the process, celebrate milestones, and create space for feedback and reflection. This helps maintain momentum and reinforces the message that staff are valued partners in the journey not passive recipients of change.

Step 3: Map the Emotional Landscape

Restructures are not just operational they are deeply emotional. For many staff, their role is more than a job. It’s a source of identity, pride, and stability. When that role is threatened or changed, it can trigger a range of emotional responses: fear of redundancy, anxiety about new expectations, grief for the loss of familiar routines, and even anger at perceived injustice. Leaders must be emotionally literate. That means recognising and validating these responses, not brushing them aside with corporate platitudes.

Avoid toxic positivity phrases like “It’s all for the best” or “Change is exciting” can alienate staff who are struggling. Instead, acknowledge the discomfort and offer support.

Creating safe spaces for staff to express concerns is essential. These spaces should be psychologically safe, confidential, and free from judgement. Staff need to know they can speak openly without fear of reprisal or dismissal.

To support emotional wellbeing during restructures, consider using the following tools:

• Team Temperature Checks: Weekly pulse surveys that ask simple questions about morale, stress levels, and confidence in leadership. These help identify emerging issues early.

• Change Curve Workshops: Based on the Kübler-Ross model, these workshops help teams understand the emotional stages of change from denial and resistance to exploration and commitment. They normalise emotional responses and build resilience.

• Coaching Circles: Peer-led support groups facilitated by trained internal coaches. These provide a space for reflection, shared learning, and emotional processing. They are especially valuable for middle managers who often feel caught between leadership and frontline staff.

By mapping the emotional landscape, leaders can anticipate resistance, respond with empathy, and build a culture of trust that supports long-term success.

Step 4: Communicate Like a Human, Not a Policy Document

Communication during a restructure must be clear, compassionate, and consistent. Too often, staff receive formal emails filled with jargon, vague promises, or impersonal updates. This kind of communication creates confusion and fuels anxiety. Instead, speak like a human. Explain what’s changing, when it’s happening, and why it matters. Be honest about the challenges and transparent about the decisions. If there are uncertainties, say so. Staff appreciate honesty more than spin. Compassionate communication means recognising the human impact of change. Acknowledge that people may be worried, frustrated, or grieving. Use language that shows empathy and respect.

Consistency is also critical. Mixed messages from different leaders can undermine trust and create unnecessary panic. Ensure that all managers are briefed and aligned before key messages go out.

One of the most powerful tools in your communication toolkit is storytelling. Stories help people make sense of change and connect emotionally with the vision. For example:

“We’re moving from siloed teams to integrated neighbourhood hubs because residents told us they want one point of contact. This restructure will help us respond faster, reduce duplication, and build stronger relationships with our communities.”

This kind of narrative helps staff see the purpose behind the change and understand their role in making it happen.

Step 5: Don’t Just Restructure Rebuild Culture

Restructuring is not just about changing reporting lines or merging teams it’s about reshaping how people work together, how they feel about their roles, and how they connect to the organisation’s purpose. Structure is only half the story. As the saying goes, culture eats structure for breakfast. After a restructure, the cultural fabric of a department can be fragile. New teams may not yet trust each other. Long-standing norms may be disrupted. Staff may feel uncertain about what is expected of them or how decisions are made. That’s why rebuilding culture must be a deliberate part of the change process.

Invest in:

• Team building: Especially for newly formed or merged teams. Create opportunities for people to get to know each other, understand each other’s strengths, and build shared goals. This can include facilitated workshops, away days, or collaborative projects.

• Leadership development: Equip managers with the skills to lead through change. This includes emotional intelligence, coaching skills, conflict resolution, and inclusive leadership. Managers are the cultural carriers of your organisation if they’re not supported, the culture will suffer.

• Values alignment: Revisit your organisational values and explore how they show up in day-to-day behaviours. Are they lived or laminated? Use team discussions, storytelling, and recognition schemes to embed values into the new structure.

Suggested tools to support cultural rebuilding:

• Barrett Values Centre Culture Assessment: Helps identify cultural entropy (energy lost to unproductive behaviours) and alignment between personal and organisational values.

• Team Canvas: A visual framework for teams to co-create their purpose, values, roles, and ways of working. Ideal for newly formed teams.

• Psychological Safety Index: Measures how safe staff feel to speak up, take risks, and challenge the status quo. High psychological safety is linked to better performance, innovation, and wellbeing.

Culture doesn’t rebuild itself. It requires intention, investment, and leadership. Done well, it can turn a restructure into a renewal.

Step 6: Review, Reflect, Refine

A restructure is not complete when the new structure goes live. It’s complete when the intended outcomes are achieved and that requires reflection and refinement.

Six months after implementation, conduct a formal review. Ask:

• Did we achieve the outcomes we set out to deliver?

• What do staff say about the new structure? Are they more engaged, more productive, more confident?

• What do residents say? Has service quality improved? Are complaints down? Are satisfaction scores up?

• What would we do differently if we had to do it again?

Use a mix of data and dialogue. Combine performance metrics with staff surveys, resident feedback, and qualitative interviews. Look for unintended consequences both positive and negative.

Most importantly, share the findings openly. Transparency builds trust. It shows that leadership is committed to learning, not just delivering. It also creates a feedback loop that strengthens future change efforts. Restructures are complex, but they don’t have to be chaotic. With thoughtful planning, compassionate leadership, and a commitment to continuous improvement, they can be a catalyst for renewal not just reorganisation.

Measuring Success: Tools and Techniques

A restructure is only as good as its outcomes. To ensure your restructure delivers on its promises, you need robust, multi-dimensional ways to measure success. This means going beyond anecdotal feedback or headline savings and using a blend of qualitative and quantitative tools that reflect both operational performance and human experience.

Performance Metrics

These are the hard numbers that show whether services are functioning better post-restructure.

• Service KPIs: Compare pre- and post-restructure performance indicators such as response times, case resolution rates, service throughput, and complaint volumes. These metrics help assess whether the restructure has improved efficiency and effectiveness.

• Resident Satisfaction Surveys: Track changes in public perception. Are residents happier with the service? Do they feel more supported, better informed, or more engaged?

• Budget Impact Analysis: Evaluate whether the restructure has led to cost savings, improved value for money, or enabled reinvestment in priority areas. This should include both direct financial impacts and indirect benefits such as reduced duplication or improved procurement outcomes.

Staff Experience Tools

Staff morale and engagement are critical indicators of restructure success. If staff feel disempowered or disengaged, performance will suffer regardless of how well the structure looks on paper.

• Pulse Surveys: Short, regular surveys that monitor morale, stress levels, and confidence in leadership. These can be run weekly or monthly and provide real-time insights into how staff are coping with change.

• 360-Degree Feedback: Gather insights on leadership effectiveness during the restructure. This includes feedback from peers, direct reports, and senior leaders, helping to identify blind spots and areas for development.

• Exit Interviews: Understand why staff may choose to leave during or after the restructure. Are they leaving because of the change itself, how it was handled, or unrelated factors? This data can inform future change processes.

Cultural Health Checks

Culture is the invisible force that shapes behaviour, collaboration, and innovation. Measuring cultural health helps ensure the restructure hasn’t undermined trust, values, or psychological safety.

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• Barrett Values Centre Culture Assessment: A diagnostic tool that measures alignment between personal and organisational values, and identifies cultural entropy energy lost to unproductive behaviours such as blame, confusion, or bureaucracy.

• Team Psychological Safety Index: Evaluates how safe staff feel to speak up, challenge ideas, admit mistakes, and take risks. High psychological safety is linked to better team performance, creativity, and resilience. This index can be used across departments to identify where additional support or leadership development may be needed.

By combining these tools, councils can build a comprehensive picture of restructure impact one that reflects not just what has changed, but how it feels to those living through it. This data should be used not only to validate success but to inform continuous improvement and future organisational development.

Training for Change Champions

Change champions are the bridge between leadership and frontline staff. They play a critical role in shaping how change is received, understood, and embedded across the organisation. When well-trained and empowered, they can help maintain morale, dispel misinformation, and foster a sense of ownership among colleagues. To be effective, change champions need more than enthusiasm they need skills. Equip them with a structured training programme that builds confidence and capability.

Core Training Modules:

• Emotional Intelligence and Empathy: Champions must be able to recognise and respond to the emotional impact of change. This includes understanding stress responses, showing compassion, and supporting colleagues through uncertainty.

• Active Listening and Conflict Resolution: Champions often hear concerns, frustrations, and resistance. Training in listening techniques and conflict resolution helps them respond constructively and escalate issues appropriately.

• Storytelling for Change: Champions should be able to communicate the vision in a way that resonates with their peers. Storytelling helps translate strategy into relatable, human narratives that build understanding and buy-in.

• Coaching Skills: Rather than directing or instructing, champions should be trained to coach asking powerful questions, encouraging reflection, and helping colleagues find their own solutions.

Suggested Formats:

• Half-day workshops with role-play scenarios to practise real-life conversations and challenges.

• Peer learning circles where champions share experiences, troubleshoot issues, and build a support network.

• Online microlearning modules for flexibility, covering key concepts in short, digestible formats.

Investing in change champions is not a luxury it’s a necessity. They are your cultural influencers, your early warning system, and your frontline communicators. Equip them well, and they will help make your restructure stick.

Psychological Safety: The Cornerstone of Change

Psychological safety is the belief that one can speak up, ask questions, and make mistakes without fear of humiliation or punishment. It is the foundation of trust, collaboration, and innovation and it becomes especially important during times of change.

Why It Matters:

• Teams with high psychological safety are more resilient, innovative, and collaborative.

• It reduces stress and burnout, particularly during periods of uncertainty and transition.

• It encourages open dialogue, which helps surface risks, identify blind spots, and improve decision-making.

How to Build It:

• Model vulnerability: Leaders should be open about what they don’t know, share their own change journey, and admit when things don’t go to plan. This sets the tone for openness and honesty.

• Reward candour: Publicly thank staff who raise concerns, offer ideas, or challenge assumptions. This reinforces the message that speaking up is valued, not punished.

• Create feedback loops: Ensure staff see how their input influences decisions. This builds trust and shows that engagement is meaningful.

• Train managers: Equip line managers to lead with empathy, openness, and emotional intelligence. Managers are the gatekeepers of psychological safety if they shut down dialogue, the culture suffers.

Measuring Psychological Safety:

Use tools such as:

• Google’s Team Psychological Safety Survey: A simple, validated tool to assess team dynamics.

• Amy Edmondson’s Fearless Organisation Scan: A deeper diagnostic that explores psychological safety across multiple dimensions.

• Truth About Local Government’s Psychological Safety Index (2025): In high-performing restructures, 74 percent of teams scored above 80 on this scale, indicating strong levels of trust, openness, and resilience.

Psychological safety is not a soft issue it’s a strategic asset. Build it deliberately, measure it consistently, and protect it fiercely.

Final Thoughts

Restructures are hard. They challenge established ways of working, disrupt relationships, and demand emotional resilience from everyone involved. But they don’t have to be harmful. When approached with clarity, compassion, and courage, restructures can become a catalyst for renewal reshaping departments in ways that serve residents better, empower staff, and strengthen organisational culture.

The key is to lead with purpose, not just process. To listen as much as you plan. To communicate with honesty, not spin. And to remember that behind every restructure are people, people who care deeply about their work, their teams, and their communities. If you’re leading a restructure and want support, coaching, or simply a sounding board, reach out. You’re not alone. There is a growing community of leaders across local government who are committed to doing change differently and doing it well.

Together, we can make restructures not just survivable, but successful.