All research
Strategy

The Invisible Reorg: How Every Strategic Shift Restructures Your Organisation Without Anyone Noticing

Mal Wanstall 7 October 2025 15 min read

Organisations announce restructures with fanfare. But the most consequential reorganisations happen silently, when strategic shifts create new dependencies, new boundaries, and new power dynamics that the formal structure doesn't reflect.

The reorg nobody announced

When a large telecommunications company decided to shift from a product-centric to a platform-centric operating model, the CEO communicated the change clearly. Town halls, internal memos, updated strategy documents. The formal organisational structure stayed the same. They’d “restructure later, once the strategy was proven.”

Eighteen months in, the strategy was stalling. Not because people disagreed with it, but because the organisation they were operating in had already reorganised itself: invisibly, informally, in ways nobody had mapped or acknowledged.

The platform strategy created new dependencies between teams that had previously operated independently. Product engineering now needed APIs from infrastructure teams who hadn’t budgeted for the work. Customer-facing teams needed to coordinate releases across products that had never been synchronised. The data team became a critical path dependency for six workstreams simultaneously, without any change to their headcount or priorities.

The formal org chart said one thing. The actual operating reality said another. And in the gap between them, the strategy was dying.

How strategic shifts create invisible structures

Every strategic shift, whether it’s a pivot to platform, a digital transformation, a move to customer-centricity, or an AI-first strategy, creates new requirements for how work flows through the organisation. New dependencies. New coordination needs. New information flows. New decision rights.

These requirements don’t wait for the formal restructure. They emerge immediately, as people try to execute the new strategy within the old structure. The result is an invisible reorg: a shadow organisation that forms around the actual work, layered on top of the formal structure that still governs budgets, reporting lines, and incentives.

The dependency shift

In a product-centric model, most dependencies are vertical, within product teams. A shift to platform-centric creates horizontal dependencies, between teams that must now coordinate but have no shared authority structure. Each new horizontal dependency is an invisible reorganisation that creates a new boundary where interference patterns can form.

The authority vacuum

The old structure defined who had authority over what. The new strategy creates spaces where authority is undefined, because the formal structure hasn’t caught up. These authority vacuums become battlegrounds for collision patterns, where legitimate but competing priorities deadlock because no resolution mechanism exists.

The incentive mismatch

People are still measured and rewarded according to the old structure’s logic. The infrastructure team’s OKRs don’t include “support the platform strategy.” The data team isn’t measured on their responsiveness to the six new workstreams that depend on them. The invisible reorg changes what people need to do. The incentive structure keeps rewarding what they used to do.

Three case studies

The digital transformation

A financial services company declared a “digital-first” strategy. Marketing, product, technology, and operations all reported understanding and supporting the strategy. What nobody mapped was that “digital-first” required 14 new cross-functional coordination points that didn’t exist in the current structure. Within six months, all 14 had become friction points. Three had escalated to executive-level conflicts. The digital strategy was diagnosed as “struggling with execution.” The actual problem was that 14 invisible boundaries had formed, each generating its own interference patterns.

The AI-first pivot

A healthcare company decided to embed AI across its clinical decision support systems. The technology was ready. The clinical teams were willing. What emerged invisibly was a new dependency between the AI team (who needed clinical data in specific formats), the data governance team (who controlled access), the clinical teams (who needed to validate outputs), and the compliance function (who needed to approve every model change). None of these coordination requirements appeared on any project plan. They were discovered through delays, escalations, and friction: the symptoms of an invisible reorg nobody had designed.

The customer-centricity shift

A retail company restructured around customer segments instead of product lines. The formal reorg was announced and executed. But the invisible reorg was larger: supplier relationships, logistics workflows, merchandising processes, and technology systems were all structured around the old product-line model. The formal reorg changed the boxes on the org chart. The invisible reorg, the one that would actually need to change for the strategy to work, was barely acknowledged.

Making the invisible visible

The invisible reorg is a specific instance of a broader pattern: strategic intent creates structural requirements that organisations fail to see because they fall between existing accountability structures.

Making it visible requires three things:

Dependency mapping. Before a strategic shift is communicated, map the new dependencies it creates. Which teams will need to coordinate that don’t currently? Which functions will become shared dependencies? Where will new authority questions emerge?

Boundary identification. Each new dependency is a new boundary. Each new boundary is a place where interference patterns can form. Identifying these boundaries proactively, before the friction starts, is the difference between designed coordination and emergent chaos.

Structural negotiation. Once the invisible reorg is visible, it needs to be negotiated. Not necessarily a formal restructure, but explicit agreements about coordination mechanisms, shared priorities, and conflict resolution at each new boundary.

The alternative, which is what most organisations do, is to announce the strategy, leave the structure unchanged, and wait for the invisible reorg to announce itself through escalations, delays, and the gradual erosion of strategic momentum. By the time the problems are visible, the interference patterns are established and much harder to resolve.

Every strategic shift is a reorganisation. The only question is whether you design the reorganisation or let it design itself.