Bureaucratic simplification is a key agenda item for public sector reform in Indonesia, but reducing hierarchical layers does not necessarily automatically transform the way government organizations operate. This study aims to analyze how structural simplification translates into a team-based work system in local government and to identify organizational conditions that support and hinder this transformation process. The study employed a descriptive qualitative approach in the Organizational Section of the Regional Secretariat of Magetan Regency, Indonesia. Data were obtained through in-depth interviews with seven purposively selected informants—the Head of the Organizational Section, three Team Leaders, and three implementing staff—and supplemented by direct observation and document analysis. The analysis employed Grindle's policy implementation framework and Miles, Huberman, and Saldaña's interactive model. The results indicate that structural simplification has encouraged more flexible coordination, competency-based task allocation, and more decentralized operational decision-making. However, the transformation of the work system has not been fully achieved because team-based practices still coexist with a hierarchical work culture, unequal managerial capacity among Team Leaders, overlapping assignments, and relatively rigid administrative and budgetary mechanisms. This study concludes that structural simplification is a supporting condition, but not sufficient, to produce work system transformation and organizational agility. Effective transformation requires coordinative leadership, cultural adaptation, workload management, and alignment of administrative systems.