Coaching for Leaders
786: The Problem with Reorgs and How to Do Better, with Phil Le-Brun
Why It Matters
Reorganizations are a common inflection point that can cripple productivity and morale if mishandled; understanding the organic dynamics of work helps leaders avoid costly disruptions. As businesses face rapid, ambiguous change, adopting agile, team‑centric structures is essential for staying competitive and retaining talent.
Key Takeaways
- •Traditional org charts ignore organic work relationships.
- •Octopus model emphasizes flexible, autonomous teams.
- •Small, stable teams boost trust and productivity.
- •Leaders should coach, not dictate, during reorgs.
- •Transparency about objectives builds employee trust.
Pulse Analysis
Reorganizations often fail because leaders focus on reshaping the org chart—a static, artificial representation—while ignoring the fluid, cross‑functional relationships that actually drive work. Phil Le‑Brun contrasts the outdated Tin Man factory mindset with the octopus metaphor, highlighting that modern organizations need distributed intelligence, rapid adaptability, and the ability to reprogram themselves as conditions change. This shift in perspective sets the stage for a more resilient, people‑centric redesign.
In practice, the octopus approach translates into small, autonomous squads—Amazon’s two‑pizza teams illustrate the principle. By limiting size to eight‑to‑twelve members, teams stay within the Dunbar number, fostering deep trust and reducing communication overload. Stable, long‑lived groups preserve tacit knowledge, while leaders remove bureaucratic barriers, allowing teams to own outcomes, experiment, and iterate without constant top‑down interference.
Effective leaders act as coaches rather than architects. They practice curiosity, ask probing questions, and tell compelling stories that connect individual tasks to broader purpose. Transparent communication about why a reorg is happening builds trust, while honest acknowledgment of uncertainty reassures employees that their jobs are valued. This coaching mindset replaces ivory‑tower decision‑making with continuous dialogue, ensuring that structural changes support, rather than disrupt, the organic fabric of high‑performing teams.
Episode Description
Phil Le-Brun: The Octopus Organization
Phil Le-Brun is an executive in residence at Amazon Web Services and a former corporate VP and international CIO at the McDonald’s Corporation. He is a sought-after speaker and has been featured in Harvard Business Review, The Wall Street Journal, and The Guardian. He is the co-author with Jana Werner of The Octopus Organization: A Guide to Thriving in a World of Continuous Transformation (Amazon, Bookshop)*.
Most of us have gone through some version of a reorg. A lot of leaders have also implemented their own reorgs. Sometimes they work. Many times, they don’t. In this conversation, Phil and I discuss what goes wrong with reorgs and how we can do better.
Key Points
Organizations traditionally looked like the tin man from The Wizard of Oz: perfectly planned, many interchangeable parts, not flexible.
An octopus organization adapts, works independently to serve the larger whole, and is innately curious.
A reorg that starts with an org chart misses the complex organic connections you are unlikely to fully understand.
Prioritize structural stability while building internal flexibility.
Nurture the complex informal human networks that deliver value.
Be honest about objectives and communicate a reorg early.
Engage people by starting with smaller-scale change. Clarify the problem to be solved instead of the structural “answer.”
Resources Mentioned
The Octopus Organization: A Guide to Thriving in a World of Continuous Transformation by Phil Le-Brun and Jana Werner (Amazon, Bookshop)*
Interview Notes
Download my interview notes in PDF format (free membership required).
Related Episodes
How to Get the Ideal Team Player, with Patrick Lencioni (episode 301)
How to Approach a Reorg, with Claire Hughes Johnson (episode 621)
How to Help Employees Handle Tough Moments, with Anthony Klotz (episode 777)
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