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  • 1. PERFORMANCE AND TECHNOLOGY Critical Success Factors for Organisational Design (OD) Dorothy Nel, Associate Director 24 June 2010 ADVISORY
  • 2. Objective of the presentation Making the business case for OD Aligning OD with strategic and tactical objectives Building support and involvement among key stakeholders Creating a dynamic governance structure with decision-making protocols Defining OD scope, deliverables and objectives Addressing key issues pertaining to resource deployment and accountability Keeping pivotal communications vital and engaging 2
  • 3. Business case for OD A business case is a document which evaluates the potential benefits, impacts, risks and revenue implications of alternative courses of action, in order to support a business decision to follow one of these courses of action. A business case is an important tool to assist in a transformation process. It is designed to provide decision-support information on at least three critical junctures of the transformation journey. Selection of Validate the chosen Case for change design solution for conceptual design finance Once the cost-benefit equation is understood, the performance measures used in the business case can become very powerful drivers for change. 3
  • 4. Business case for OD (cont.) Guiding principles The business case cannot reflect on precise, validated numbers Assumptions need to be made that are reasonable, objective and conservative The benefits need to be defined in terms of the key performance indicators, as defined by the balanced scorecard Industry trends Used to obtain buy-in from key stakeholders Assumptions remains static and are not tested Re-evaluation of benefits 4
  • 5. Aligning OD with strategic objectives Organisational strategy Organisational value chain Core/non-core Business model Strategy Customers Services/products Process Tech- nology Operating model Processes/technology Culture People Structure Structures Culture Performance measures 5
  • 6. Building support and involvement among stakeholders Strong sponsorship at the appropriate level Mitigating risks including change management risks Stakeholder engagement Internal/external Appropriate level Participation in design and analysis Best practice/benchmarks Structured communication process Two-way flow of information Key messages aligned to project milestones HR involvement Change agent/super users Raise resistance Size of OD intervention 6
  • 7. Creating a dynamic governance structure with decision-making protocols Ratifies investment decisions Board Validates the business model/organisational structures Project Steering Exco Committee Makes technology and high- Addresses risks/issues level process decisions Provides quality Approves organisational Project Sponsor assurance structures Evaluates if project Approves budgets Approves project deliverables are deliverables appropriate Addresses risks & issues Monitor & track budgets Project Manager Obtain progress reports Escalate issues & concerns 7 Identify inter-dependencies
  • 8. Defining OD scope, deliverables and objectives Scope Organisational levels Number of people/areas affected Processes within the organisation Technology Infrastructure Timeline Deliverables Analyse findings Key findings on organisational model, structure, process, technology and culture Customer engagement Comparison to best practices/benchmarks Main areas of enhancement Future design Design principles Future business model (processes, structure, technology & culture) Change impact and risks associated with the model Business case Implementation plan Objectives Case for change Measurable objectives with KPI’s Tracking of objectives (quick wins) 8
  • 9. Addressing key issues pertaining to resource deployment and accountability Project perspective Migration perspective Role clarification between Internal HR client/consultants in various Job profile development & streams of the project job grading Sponsorship roles System updates Initiating/sustaining Guidance on consultation process Day to day commitments vs. project commitments Management Interdependencies - project Consultation/communication manager role Organised labour Staff affected Change agents Performance contracts 9
  • 10. Keeping pivotal communications vital and engaging Pivotal communications Audience Case for change or business case Board, Exco & Sponsor Project objectives/measures and Sponsor budget Design principles Exco Value chain/ business model Board/Exco discussions Organisational impact on processes/ Exco structures/technology/culture Business case and implementation plan Board/Exco Unions, clients, suppliers, Impact/process staff etc. 10
  • 11. Presenter’s contact details Dorothy Nel KPMG +27 (12) 431 1468 dorothy.nel@kpmg.co.za www.kpmg.co.za The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. © 2010 KPMG Services (Proprietary) Limited, the South African member firm of KPMG International, a Swiss cooperative. All rights reserved. Printed in South Africa. 11