Two steps ahead: lessons from AEC reorganizations

Successful reorganizations require thoughtful planning and consistent communication that builds a clear understanding of not only the why, when, who, and how but, critically, the what’s next.

According to the Stambaugh Ness 2025 AEC Industry Outlook, survey respondents from engineering/environmental firms cited improving operational efficiency (71%) and managing company growth (68%) as key challenges. Firms that have grown rapidly, the survey notes, simply don’t have the organizational structure to effectively manage that growth. Many of those firms are reorganizing in an effort to build capacity for growth, tighten alignment across the firm, and improve efficiency to drive value.

Critical to realizing strategic goals and sustaining change is a focus on thinking two steps ahead. Announcing a reorganization is just the beginning. Understanding and anticipating questions and concerns and meticulously planning next steps is the bedrock of sustained adoption. Skating to where the puck is going, as Wayne Gretzky has said, not where it has been. That includes quickly enabling and empowering new leaders to lead on day one to establish trust through action and operationalize the what’s next of change.

A few observations and insights from our work guiding AEC firms through enterprise-wide reorganizations:

Seize the moment.

The most vulnerable moments in a reorganization are those immediately following an announcement. The town hall has wrapped, the attendees have dispersed, the collective energy dissipates, and the questions begin to form. Focused, nuanced questions not asked and answered in the FAQ document or town hall follow-up deck posted to the intranet.

This is a pivotal moment and a singular opportunity to demonstrate how the new structure functions in real time. The sustainability of change hinges on immediate action. Teams prepared for not just day one, but day two and beyond can begin to build trust by showing – not just telling – how the new organization will work.

The most vulnerable moments in a reorganization are those immediately following an announcement. The town hall has wrapped, the attendees have dispersed, the collective energy dissipates, and the questions begin to form. 

For a large global environmental consulting firm moving from a business line led structure to a regional operating model, this meant that the newly appointed regional leaders were ready to go immediately following an all staff town hall to illustrate how the regions would collaborate with existing business lines. There were next day calls and meetings co-organized by regional and business line leaders to show what their partnership would look like. The calls provided an opportunity to respond to questions in real time and begin to talk through regional market opportunities. Proactively standing up communications functions at the regional level was key to establishing leadership and building trust.

Mind the complexities.

In planning and rolling out a reorganization, leaders can look ahead to anticipate issues and plan next steps, but it is equally important to look broadly across the organization to understand and accommodate other recent or ongoing changes. Mergers and acquisitions, for example, can trigger a cascade of subsequent change: new leadership teams, new strategies, entering new markets, and reorganizing internally.

For many AEC firms on an acquisitive growth path, ongoing M&A integrations can create an added level of complexity in implementing a reorganization. Recently integrated teams just getting acclimated to an existing structure and finding their place in it are now called on to navigate a new structure, new leadership, and, in some instances, new reporting lines. Hearing and understanding specific concerns from groups uniquely impacted by change is essential to maintain engagement and minimize confusion and disruption.

Make it make sense.

When aligned with strategy and communicated clearly, a reorganization can present a significant opportunity for learning across the organization. From a strategy perspective, if new market influences and evolving client needs were key drivers in the decision to restructure, sharing and discussing those trends across the organization as part of the rollout can have a two-fold benefit: helping employees understand the broader market picture and elevating market intelligence from project teams to leadership.

For a mid-size publicly traded environmental consulting firm, a new three-year strategic plan preceded a reorganization to consolidate and realign business sectors and streamline P&Ls. In developing core messaging for the reorganization, there was a direct connection to the four strategic pillars of the plan and a clear line of sight to how the new structure aligned with strategy and enabled its execution. The reorganization presented an opportunity to reinforce and deepen understanding of the firm's strategic direction.

A well-executed reorganization is more than a structural change, it’s a strategic enabler. By anticipating challenges, leading with action, and maintaining open communication, AEC leadership teams can turn change into opportunity and deliver on a reorganization's true value.