Unit-level managerial changes frequently occur in today’s organizations. Prior studies often emphasize their adverse effects; this focus tends to spotlight the negative consequences of disruptions stemming from the departure of outgoing line managers and the arrival of new ones. However, we argue that these disruptions can also have the potential to bring significant benefits to the unit: novel solutions to the existing problems. Drawing on a unique longitudinal dataset capturing managerial transitions, this study explores the conditions that enable successful managerial changes. Specifically, we suggest that a stable workforce structure—characterized by modular work groups and full-time employees—can aid the new manager’s learning, allowing them to swiftly navigate the initial hurdles of the transition period and potentially achieve superior performance outcomes over time. Consequently, this research highlights that the key to effective managerial change may not lie in merely mitigating the disruption but in leveraging the opportunities it creates.
