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Organizational design strategies and common pitfalls
- 2. Organization design Organizational design is a step-by-step methodology which identifies dysfunctional aspects of work flow, procedures, structures and systems, realigns them to fit current business realities/goals and then develops plans to implement the new changes. A clear strategy for managing and growing your business .
- 4. SUCESS 1. Build on your strengths As Socrates, father of Western philosophy and arguably the original disruptor, said, “Know thyself.” Go ahead and acknowledge upfront that retooling your organization is a tough rock to tackle. Then, identify who you are. Pinpoint the unique role that your company holds against the competition. Define where these strengths will take you in the new world order.
- 5. 2. Go beyond lines and boxes At the same time, building on your strengths doesn’t mean doing what you’ve always done. Start by asking how the company’s unique strengths shape how people work and act. Balance that by asking where your company structure isn’t currently serving your business goals.
- 6. 3. Know your roles No question: It’s expensive to find, develop and later (regretfully) let go of talent. The best time to get your org design right is before you grow your team. That’s right – expanding your team should happen after you’ve clearly defined the impact you need from new roles. But this is a challenge; many organizations lack definition around technical roles. The process of defining roles is traditionally the responsibility of Human Resources (HR). However, HR departments struggle to update and create new roles as technology advances and business needs shift—causing frustration for the organization.
- 7. 4. Rock your roles Equally important is the development of those hires – and all team members – throughout their entire careers. Offer them ongoing resources and training to ensure they continue to be innovative thinkers and doers. Design roles that work the muscle of the people in them — that goes for both leaders and technology experts alike.
- 8. FAILURE 1. Lack of Resources Lack of resources is one of the most common reasons why organizational change fails in most organizations. Adoption and sustainment of change are long term investments. They don’t occur just because an awesome solution was designed. It has to get implemented, and then tested, refined, and reinforced. This generally is a longer, and costlier endeavor than most change leaders realize. If you don’t plan and resource the latter phases of change, you’ll not realize the full benefits you set out to achieve.
- 9. 2. Not knowing what you are trying to achieve Before moving boxes and lines on an organization chart, it is important to know why you are doing the reorganization. Is it a result of a merger, acquisition, or downsizing? Are you trying to reduce costs and improve efficiencies? Are you struggling with performance issues? Are there too many direct reports, which may be impeding both employee development and innovation? Is the reporting structure too complex? 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.
- 10. 3. Causing more disruption than needed ScottMadden sometimes encounters clients who view reorganization as an opportunity to “clean house.” Although it is true that 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.