This presentation tells us about the success and the failures in organization design

1. SUCCESS AND
FAILURES IN
ORGANIZATION
DESIGN
NIVETHITHA MEENAKSHI.U
RA1952001020088
MBA - B
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2. ORGANIZATIONAL DESIGN
 The creation of roles, processes and structures to ensure
that the organization’s goals can be realized.
 The process for shaping the way organizations are structured
and run.
 It involves many different aspects of life at work, including
team formations, shift patterns, lines of reporting, decision-
making procedures, communication channels, and more.
 Can help any type of organization to achieve its goals.
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3. SUCCESS IN ORGANIZATION
DESIGN
 Start with strategy
 Define the capabilities required to win
 Involve those who will be impacted
 Align metrics & rewards
 Have a clear implementation program
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4.  Start with strategy : The process needs to start with a deep
review of strategy and its implications. Very clear on what you
are trying to achieve as a business, and make sure objectives
and goals are linked to the vision and values. Carefully assess
how trends are likely to evolve in the future to understand how
your business, and the new structure you’re planning to
implement, will need to change over time.
 Define the capabilities required to win : These capabilities
should include both people and processes because the easier
you make it for your employees to execute, the more successful
you will be. Where performance is less, create a specific plan to
build or buy the required capabilities. Where performance is
better redeploy resources to higher priority processes.
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5.  Involve those who will be impacted : People who will actually do
the work can “pressure test” the design and identify gaps early.
Employees understand what a privilege it is to be on the design team
and typically see them put aside individual concerns and rise to the
challenge of doing what’s best for the company. Trust them and they
will deliver.
 Align metrics & rewards : Once the new organization design is
complete, it’s critically important to align the business metrics and
reward systems to be congruent with the business strategy and the
organization design
 Have a clear implementation program: Implementation plans will
help employees reconfigure the systems, processes, data, roles and
governance that need to change to fully enable the new structure.
Implementation provides critical opportunity to engage best talent in
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6. FAILURE IN ORGANIZATION
DESIGN
 Not knowing what you are trying to
achieve
 Structuring an organization for specific
personnel
 Causing more disruption than needed
 Skipping current state assessment
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7.  Not knowing what you are trying to achieve : It is very
important to have a clear picture about organization design. Clear
guidelines that reflect what the goals of the new organization are
will help companies ensure that the redesigned organization will
attain those stated goals.
 Structuring an organization for specific personnel : It is not
uncommon for key people within an organization to have
tremendous influence due to their tenure, expertise, or importance
to certain client relationships. As a result, there is a risk that the
preferences of the individual will become a priority during
organization design rather than the objectives and requirements of
the business. It is incredibly important to separate the organization
design component from the actual selection of staff. Strategy
should drive organization design, and organization design
determines the type of people who should be selected.
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8.  Causing more disruption than needed : the need for change
usually provides a good opportunity to also address other
inefficiencies or problem areas, leaders should be cautious about
causing more disruption than necessary. Drastic staffing cuts or
process changes can result in reduced employee morale, the loss
of valuable talent, stagnated innovation, and an overall distraction
from the mission of the organization.
 Skipping current state assessment : Many organizations desire
to jump directly to the organization design stage before conducting
a detailed current state assessment (CSA) that includes current
costs, volumes, and service levels of the organization. Gauging
improvements in efficiency and/or performance from the redesign
often depends on an organization’s ability to analyze and compare
layers, spans, and cost-to-manage to standards.
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9. BEST ORGANIZATIONAL DESIGN
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10. POOR ORGANIZATIONAL DESIGN
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11. CONCLUSION
 Dynamic strategies should be implemented.
 It is very important to have a good organizational
design for the long – run of the organization.
 Regular assessment should be made in order to
redesign the organizational design.
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