5 Critical Mistakes to Avoid During a Restructure: How to Protect Trust, Morale, and Resilience

The USAID funding crisis is forcing many NGOs to restructure in order to survive. Without careful management, however, restructuring can have devastating consequences, as trust can easily be eroded, morale can plummet and burnout become rife. 

We recognise that in a crisis, survival is your top priority. But how you handle this transition will determine whether you emerge stronger—or risk long-term damage.

Our 20+ years’ work in the leadership and culture space has revealed that if you can avoid these five pitfalls, your team has a much better chance of surviving a crisis. If you fall into them, however, we’ve seen time and again how a bad situation can be exacerbated.

The 5 mistakes to avoid

1. Lack of clear leadership

In times of change, employees need strong, consistent leadership.  Lack of direction or unclear communication creates an environment of fear and uncertainty. Employees are left to fill in the blanks with rumours, leading to anxiety and distrust. We recently worked with an international NGO whose leaders had initially struggled to communicate consistently. Trust in them had begun to evaporate and many of the team were saying they wanted to quit. It was only after leaders started to become clearer and more consistent in their decisions and how they communicated them that morale and confidence began to improve again.

2. Focusing on operational efficiency at the expense of the mission

While cutting costs and improving operational efficiency is often necessary, when employees feel that financial concerns outweigh the mission, they can become disconnected from what drew them to the organisation to begin with – their purpose, causing them to disengage. An INGO we worked with recently, for example, helped keep people engaged by clearly communicating how the tough decisions that were being made aligned with their core values, and relating everything back to their ability to deliver on their mission. Whilst people regretted what was happening, they saw a clear need for it, and so were willing to support it.

3. Failing to involve employees 

In one organisation we worked with, many people were feeling resentful and resistant to the restructure because it was being implemented in a way that was very top down. We therefore worked with the management population to ensure that their teams’ perspectives were being heard and captured. This then fed into the overall planning process, which gave employees a greater sense of ownership and purpose, fostering a more collaborative and engaged atmosphere. Including different perspectives also led to finding better solutions that worked for everyone. 

4. Neglecting employee wellbeing 

Restructuring is an emotionally charged process which can have a significant impact on mental and emotional wellbeing. Failing to support staff during this time can lead to burnout and stress. As well as the potentially devastating impact of this on individuals, it will also affect team cohesion and productivity. 

We’ve seen several NGOs fail to listen to and address individual anxieties – and the disengagement and resentment that results. Organisations that invest in wellbeing however – such as coaching or resilience or empathic communication workshops – are better equipped to manage the strain of restructuring. Employees feel more cared for, have a healthy outlet for their stress or frustration and feel able to deal with the strain they are under.

5. Failing to provide long-term support

Restructuring doesn’t end once changes are made; without ongoing support people can struggle to adjust to their new roles, or rebuild morale and team-cohesion. 

We’ve worked with organisations to develop regular check-in opportunities and ongoing management development, to ensure they have the skills to hold space for their teams and help them to feel supported as they find their feet in the new-look organisation.

What next?

Restructuring under financial strain is never easy, but how you navigate it will define your organisation’s future. Neglecting trust, morale, and wellbeing can deepen the crisis, while a more considered approach can foster resilience and renewed commitment.

When you’re fighting to keep the doors open, you might be thinking, “I barely have time to breathe, let alone think about long-term wellbeing strategies.” But even small actions—like clear communication, involving employees in decision-making, and prioritising wellbeing—can make a significant difference.

These five pitfalls are just the tip of the iceberg. Every organisation’s journey is unique, and knowing what to prioritise in a crisis can feel overwhelming. That’s why we’ve designed a practical, 1-hour workshop to help you avoid the most damaging mistakes and create a path forward with confidence.

🚀 Join us for ‘Surviving the storm: How to avoid 5 common mistakes made in times of crisis’.

✅ Learn proven strategies from 20+ years of experience
✅ Get practical tools to protect morale, trust, and resilience
✅ Connect with fellow NGO leaders facing the same challenges
✅ Walk away with clear next steps for navigating uncertainty

This workshop is designed for busy leaders—concise, actionable, and immediately useful.

💡 Spots are limited! Sign up now and take the first step toward leading through crisis with confidence.