Creating an effective Organization Design for a solution provider
Creating an effectiveOrganization Design for aSolution Provider PeolpleWiz Project Archive
Client Overview• A well known manufacturer of telecom products wanted to transform into a Systems Integrator company that provides services like design, installation, commissioning and management of telecom networks.• With the expanse of opportunities in telecom sector, the company wanted to multiply its turnover through the route of providing end-to-end solutions to its customers.• PeopleWiz Consulting worked closely with the management to create a progressive Organization Design that supported the transformation as a Solution Provider.
Business Challenge• The existing organization design was based on functional specialization and did not permit the organization to develop Solutions Thinking capability that required a seamless view across processes• The employees had over the years perfected the art of being a low cost and high quality producer of a standard good. Creating an organization that engages with the customer, helps the customer in defining the requirement and uses a participative approach to creating a solution required a change in the ‘Organizational Mindset’.• To become a problem solver for the clients, the company had to quickly add to its existing technical and functional expertise through organic as well as inorganic growth.
Organizational Design Framework & Process The organizational design process composes of the following order: 1.Identifying guiding principles and design criteria based on growth strategy and current state assessment and external perspective. 2.Creation and building consensus on operating model. 3.Proposal and evaluation of structural options based on the design criteria by the leadership team. This would include line and staff functions, levels of hierarchy and span of control. 4.Identification of roles following a bottom-up process based approach. 5.Mapping of integrative (support) processes to ensure internal and external interfaces are defined and flow of information is smooth. 6.Identification of organizational competencies and roles based competencies. Creation of performance measures which align an individual’s goals to the overall organizational objective. This builds the foundation for training and development, compensation systems and overall performance management. 7.Creation of an implementation plan by adopting a formal Change Management approach.
Engagement Approach Vision & Strategy Workshop• The first phase consisted of diagnosing the current state of the organization. Key stakeholders interviews and perusal of strategy documents were conducted to understand the vision, key growth drivers, future business strategy and major challenges faced by the division• The client had identified three direct competitors. Information was gathered about their organization structures, employee profile and progressive people practices to use as reference. This included primary as well as secondary research• During the analysis phase, the future strategy and current challenges were analyzed to create guiding principles for the design. Based on the internal strengths and differentiators of the client, an operating model was proposed.• In a workshop setting with the key decision makers, the business focus in the coming years, targets and vision statement was deliberated and discussed. Proposed operating model, interim organization structure and futuristic organization structure were presented to the management. These were discussed and finalized. Implementation plan for the new organization design was created and a Programme Management methodology was adopted to drive changes.
Success• Creation of Organizational Blueprint and roadmap for the transformation provided clarity and shared vision to all affected stakeholders.• Through the adoption of a Programme Management methodology and a formal change management approach, the organization was able to design and employ organizational design changes effectively and smoothly.• Gaining an external market perspective prompted various other organizational development initiatives like – Process Orientation through Capability Maturity Model Certification – Knowledge Management through dedicated web portal – Competency development through E-learning – Adoption of best people management practice from service industry