Weaving a Stronger Organization


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Weaving a Stronger Organization

  1. 1. WEAVING A STRONGER ORGANIZATION Create long-term value during a reorganization or merger integration PreSented By CreatorS oF
  2. 2. Many books describe how to choose a high-level organizational design model and staff the top 1% of executives. This is not one of those books. This book is for those who are responsible for a reorganization process. And not just responsible for reorganizing the top 1%, but for the whole organization, down to the last branch. If you need some insight into the deep complexities of designing and staffing a complete organization optimally, we hope you will find some help in these pages. At BrightArch, we have built our OrganizationWeaver software based on the insights in this book. Whether or not you need a tool like OrganizationWeaver, we wanted to share some general principles that can help you weave a stronger organization. We hope this can be the start of a deeper discussion about innovative reorganization practices. Join in the discussion on Twitter at twitter.com/brightarch.
  3. 3. Table of contents 03 ChooSing a Solid method 04 develoPing the organization deSign 06 liStening to everyone’S PreFerenCeS 08 StaFFing the right PeoPle in the right joBS 12 unloCking value For all StakeholderS 14 diSCuSSion on SuCCeSS, Failure, and hr’S role 16 organizationWeaver 20 our viSion and guarantee 24 OrganizationWeaver is the efficient way to design and staff large organizations transparently.
  4. 4. 04 Choosing a solid method
  5. 5. Choosing a solid method 05 BrightarCh’S method DEVELOP THE LISTEN TO STAFF THE ORGANIZATION EVERYONE’S RIGHT PEOPLE DESIGN PREFERENCES IN THE RIGHT JOBS Restructuring a large organization is a highly complex task that requires a solid method. When selecting a method to follow, closely consider if it has these three qualities: 01 The process of designing the organizational structure should be 02 Processes should be transparent, robust, and have a clear division of 03 Employee preference data has the potential to be very valuable, seperate from the responsibility. or to be a process process of staffing breakdown. the organization. The data should be harnessed optimally.
  6. 6. 06 Choosing a solid method Developing the organization design DEVELOPING THE ORGANIZATION DESIGN Choosing a solid Method, Part i When ShaPing a neW organization, BuSineSS Strategy ComeS FirSt. it deFineS the BuSineSS areaS, hoW Big they Should Be, and their reSPonSiBilitieS. But Without a Clear imPlementation ProCeSS to Create a detailed deSign, even the BeSt Strategy Can Fail.
  7. 7. Choosing a solid method Developing the organization design 07 For every strategic In order to be able to answer those questions, decision, there are ripple it’s important to track and measure each effects throughout the decision during the detailed design. It’s the organization that need only complete way to see if the detailed to be understood. Are design is following the strategy. we staffing up or down In practice, a detailed design consists mostly in the right places? of creating, documenting, and approving units Are we distributing and positions, one by one, in a structured competencies optimally? pattern. The graphic below explains a high-level process for completing each organizational unit in the new structure. the organization deSign You are Gain approval assigned to be Create a unit for unit the author of a description description business unit Create general Gain Assign authors requirements approval for to next level for next requirements level units With the Organization Design module of OrganizationWeaver, designated teams from each business area can work together to simultaneously drag and drop their way to a new organizational structure. All of the essential data needed to create an optimal organization is at the project teams’ finger tips. A template system helps reduce work significantly.
  8. 8. 08 Choosing a solid method Listening to everyone’s preferences Choosing a solid Method, Part ii
  9. 9. Choosing a solid method Listening to everyone’s preferences 09 three reaSonS to Pay attention to every Single emPloyee 01 02 03 IT’S BETTER FOR IT’S BETTER FOR IT’S BETTER EmPLOYEES THE PROCESS FOR THE NEW Knowledge workers The best processes ORGANIZATION expect to be heard, not accomplish complicated merely allocated. By giving tasks in an efficient manner Organizations are stronger employees a reason to with minimal risk. What’s when each individual is take charge of their careers more complicated and high- confident in his or her and engage in the change risk than figuring out where position. There is no process, it’s easier for them thousands of employees centralized way to build to commit to the change. should be staffed? By this confidence; it has to On the other hand, if high enlisting each employee come from employees levels of uncertainty and to help define their skills describing where they low levels of engagement and career preferences, can contribute the most persist, employees often this complicated process value. If this detailed and lose interest and start to can be handled in a much targeted information is look for other opportunities. more efficient manner and not used to make staffing reduce the risk of alienating decisions, the strength of valuable employees. the future organization can be reduced radically.
  10. 10. 10 Choosing a solid method Listening to everyone’s preferences Unfortunately, the process of listening to employees and incorporating their preferences into final decisions is often pushed to the side. This is due to time constraints and an inability to handle the large flood of complex data involved. If the change team fails to make it a priority to listen to employees, politically motivated decisions can start to undermine trust throughout the organization. One way to avoid politicizing the process is to handle decisions centrally and based on merit. This is difficult to arrange without supporting processes and tools, but is highly preferable to the alternative of allowing decentralized committees to make sub-optimal decisions behind closed doors. With the Employee Preferences module of OrganizationWeaver, employees can create prioritized lists of the positions they are interested in using a web-based solution. At the same time, they can provide other relevant information about their careers.
  11. 11. 12 Choosing a solid method Staffing the right people in the right jobs STAFFINGTHE RIGHT PEOPLE IN THE RIGHT JOBS Choosing a solid Method, Part iii an organization Cannot ColleCtively move ForWard until all StaFFing deCiSionS have Been Settled and individualS Can reFoCuS on meeting StrategiC goalS.
  12. 12. Choosing a solid method Staffing the right people in the right jobs 13 The staffing process is one of the most requirements and the candidates’ skills and intense and sensitive parts of the project. preferences. There are many risks to avoid, and many A defined workflow is required to work requirements to meet. However, if the through this complicated staffing puzzle. strategic organization design has been Ideally, the workflow should minimize developed properly, and employee unnecessary tasks while maximizing preferences have been gathered, everything adherence to staffing principles. Done is in place to efficiently make optimal right, all of the candidates can be evaluated staffing decisions. equally and fairly. True success in a staffing To fit the right people in the right jobs, process can be measured by company the priorities of the company and each performance and employee satisfaction. For employee need to be considered. This is a quick gauge of success, check how many accomplished by evaluating candidates employees were staffed to their highest for positions based on pre-defined priority positions. With the Staffing module of OrganizationWeaver, thousands of positions can be staffed based on thousands of variables. Our advanced algorithm is able to simplify these complexities by enhancing the human decision making process. Keeping everything transparent and auditable ensures that meritocracy trumps favoritism.
  13. 13. 14 Unlocking value for all stakeholders all merger integration and reorganization ProjeCtS Should take a PeoPle FirSt aPProaCh. But merely having thiS goal iS not enough to unloCk the ConSideraBle value PromiSed.
  14. 14. Unlocking value for all stakeholders 15 One of the biggest mental hurdles to overcome in Stakeholder value large organizational transformations is to recognize that building a new organization is a highly Employees are more intricate organizational engineering problem. It engaged, less likely to requires balancing multiple variables for every little leave, and more confident decision. It also requires that decisions be made in in their career paths. the right order based on relevant information. This complexity results in one of the most undisputed Managers are able to finish facts of business: Organizational transformations tend to fail. the change process quicker Research, attempting to explain these failures, and with a better result. normally points to cultural issues, poor communication planning, or lack of employee engagement. Owners are able to In addition to those factors, there is a lack of focus on strategic goals dedicated processes and tools to make decisions instead of worrying about efficient, optimal, transparent, and trustworthy. retaining key talent to By taking a people first approach that also execute those goals. harnesses dedicated processes and tools, the risk of project failure is reduced and the power of your new organization is amplified.
  15. 15. 16 Discussion on success, failure, and HR’s role DISCuSSION ON SuCCESS, FAILuRE, AND HR’S ROLE niColay Worren iS a SPeCialiSt in organization deSign With 12 yearS oF exPerienCe From ComPanieS SuCh aS Pa ConSulting grouP and aCCenture.
  16. 16. Discussion on success, failure, and HR’s role 17 Why do WorkForCe integration ProjeCtS “the main goal and reorganizationS So oFten Fail? Should not Be to Re-design processes are challenging projects, particularly take a deCiSion aS in large and complex firms. In addition to the core task of FaSt aS PoSSiBle But to minimize identifying the right structure, which can be challenging in imPlementation itself, one needs to deal with the inevitable politics that result time and CoSt, from having to alter individual roles and responsibilities. WhiCh oFten The way one approaches the re-design process is critical. requireS an The main goal should not be to take a decision as fast as inveStment possible but to minimize implementation time and cost, oF time in the which often requires an investment of time in the planning Planning PhaSe.“ phase. To minimize implementation time and cost, you need buy-in from stakeholders and that can only be achieved by creating a fairly transparent and open process where people take part in a dialogue about criteria and alternative solution concepts. Of course, although a new model may be right for the company, not everyone will benefit from a change and reorganizations always carry a risk of losing some key people. What are the high-level ChoiCeS When deSigning a neW organizational StruCture? In most organizations, you have three basic types of functions: Sales or market units (those that sell and market products or services), product units (those that develop or manufacture products or configure and deliver services), and internal service providers (such
  17. 17. 18 Discussion on success, failure, and HR’s role “the manner as HR, IT, and accounting). One key choice is to determine in WhiCh the whether to choose one main grouping criterion or try to StaFFing ProCeSS combine these different dimensions. I increasingly see iS ConduCted Can examples of companies trying to create multi-dimensional inFluenCe the structures, like having product and sales units at the same quality oF the level. Instead of the traditional matrix, there are other ways organization of linking the product and sales units together without the deSign.” need for people to work for more than one boss. But in some cases selecting one main criterion (e.g., a product based organization or a geographical structure) still makes sense. It depends on what the strategic intent of the company is and also on the size and type of work processes. What iS the relationShiP BetWeen the deFinition oF StruCture and the SuBSequent StaFFing? These processes are interlinked, because if you have an effective design process that produces a well-defined “blueprint” for the new organization, it will make the subsequent staffing much easier. More surprisingly, perhaps, the manner in which the staffing process is conducted can also influence the quality of the organization design! People are often appointed to new positions by higher level managers. Yet I generally recommend an explicit internal staffing /recruitment process where people can apply for new positions. If employees know that management will carry out the staffing in an open and transparent way, and that they can express their
  18. 18. Discussion on success, failure, and HR’s role 19 preferences about new roles, they are likely to view the “one intereSting re-design process more favorably and see opportunities in trend iS that a new structure. And that, in turn, may make them more Some ComPanieS willing to participate actively in finding the right design. are aPPointing In terms of sequencing, it’s a fundamental principle in a direCtor oF this field that structure should come before people. It was ‘organizational Elliott Jaques, a Canadian organizational psychologist, eFFeCtiveneSS’, who pointed out that an organization isn’t a collection oFten rePorting of people, but rather a set of roles. The point is not to to the SvP oF human look at who is in the organization today. You must first reSourCeS. thiS ask, “Do we have the right organizational structure given may Strengthen our work processes and our strategy?” That leads to hr’S aBility to requirements for individual roles. You can then fill these Play an aCtive roles with actual people. By the way, when you do that, Part in SuCh you only give people a temporary “jacket”. Next time ProCeSSeS.” around they may be asked to put on another jacket. What iS normally the role oF the HR FunCtion in theSe ProCeSSeS? In staffing, HR normally plays an important role in planning and facilitating the process. In terms of designing the overall organizational model, HR is involved in some companies but not in others. Many say that HR should get more involved. I think so too. One interesting trend is that some companies are appointing a director of ‘Organizational effectiveness’, often reporting to the SVP of Human Resources. This may strengthen HR’s ability to play an active part in such processes.
  19. 19. 20 OrganizationWeaver BrightArch organizationWeaver iS the eFFiCient Way to deSign and StaFF large organizationS tranSParently.
  20. 20. OrganizationWeaver BrightArch 21 Defining high-level organizational properties is a challenge that has long been acknowledged as important and demanding of rigorous effort by experts in business and academia. However, some challenges (like the detailed composition and staffing of a large organization) are just too complex for any small group of project members to conceptualize and process. Since they do not directly effect top management, these challenges have not been recognized in the same way by experts. Now, the complexities of defining the detailed composition of an organization can be handled with a proven method and set of tools: OrganizationWeaver. OrganizationWeaver gives project members process algorithms that split every problem into smaller decision points that are supported by relevant data. This way, it is possible to greatly reduce the time between the start of an organizational transformation and an aligned organization that can focus on strategic goals.
  21. 21. 22 OrganizationWeaver BrightArch a ComPlete SyStem module 01 Organization Design: Any number of project members can work simultaneously to drag and drop their way to a new structure that can meet strategic goals. SuPPorting FunCtionality eaSily dePloyed Flexible and easy-to-use reporting, e-mailing Import/Export data from an ERP and employee hotline user interface. or HCM system of choice. Choose a hosted version or install locally. No long term commitment – plug out when the change process is complete.
  22. 22. OrganizationWeaver BrightArch 23 module module 02 Employee Preferences: Allow your people to take charge of their careers and engage in a transparent process. 03 Staffing: Match company needs with employee preferences in an optimal way. Finish the change process quicker and get back to business. dediCated SuPPort SeCurity Technically smooth implementation with End-to-end encryption. full onsite support throughout the project. Data is stored centrally, never We also offer project management support on users’ computers. through our experienced consultants. Granular access control system.
  23. 23. 24 Our vision and guarantee OuRVISION Through OrganizationWeaver, we will contribute to significant performance improvements for our customers. We will help build stronger organizations by ensuring that the right people are assigned to the right positions. We will implement transformations that can be exciting opportunities for employees, rather than threatening changes. We will make reorganizations faster and more reliable than those that use traditional methods. OuR GuARANTEE We strongly believe that OrganizationWeaver provides superior value. If you disagree, and OrganizationWeaver does not perform as described, we will refund the entire cost of the software. Please refer to our website for details: www.brightarch.com/guarantee
  24. 24. 26 Quick reference guide QuICk REFERENCE GuIDE engaging emPloyeeS during BalanCing tranSFormational ChangeS ContradiCtory Ű Communicate and implement a fair staffing process ideaS early. It will set the tone for all subsequent changes. Ű Be transparent and secure Ű Keep as much transparency as possible. Share the staffing Ű Be careful and fast principles and the criteria that people will be evaluated on. Ű Respect organizational needs Ű Create consistent job descriptions and share with everyone. and individual needs Ű Ask everyone about their personal career Ű Be consistent and flexible priorities and preferences. Ű Prepare as much as possible before the transformational change has been announced. The earlier you can communicate a fair process, the better. Ű Communicate effectively and personally at every step of the process. Ű Track the daily progress of each project team. Ű Keep the project as small as possible so that the organization is able to focus on daily business. Ű Work intensely. Organizational change processes restrain your business. Swift implementation serves everyone involved. Ű To avoid legal issues, keep sensitive data secure and maintain an auditable trail of decisions. www.brightarch.com
  25. 25. Copyright © 2010 BrightArch AS. Information & text by BrightArch AS All rights reserved. Typography & design/layout by Chris Lee
  26. 26. ContaCt headquarterS www.brightarch.com BrightArch AS info@brightarch.com Meltzers Gate 4 Phone: +47 - 21 09 53 50 0257 Oslo, Norway Fax: +47 - 22 43 12 20