A Case in PointGetting the right organization design for a client
Case Summary PeopleWiz Consulting partnered with a technology Start-up in its growth phase to facilitate the creation & deployment of a progressive organization design PeopleWiz provided the methodology and roadmap for building an energized organization with a new structure and people management systems.
Client Overview Founded by two brilliant engineers, the client is a three year old company providing engineering solutions to the dairy and food & beverages industry. Due to their low product cost and fanatic concern for quality, the demand for their products and services quickly outgrew their delivery capability. The company engaged with PeopleWiz to create an organization structure that supported the growth strategy. The scope included design and implementation of the structure.
Organizational Lifecycle of a Technology company Start up Growth Expansion Maturity Transition CLIENT Measures needed to Accumulate capital, Business opportunities Company revenues Amassed assets and improve growth like suppliers, resources exceed infrastructure grow as companies solid profits, by diversification , and mandatory and resources. Need for establish strong becoming established inChallenge reengineering, new technical skills. consistent repeatable customer bases. Need the market. The primary product development Market entry through business processes. additional funds to area continues to yield to spur growth. first customer. Retention of skilled exploit opportunities. profits, but experiences Changes in external Attracting skilled Manpower Need to Establish slow or stagnant environment need to manpower seamless employee growth. be tracked and communication corrective actions required. Leadership focus is on Focus on making the Managed delegation , Organization size is Collaboration neededManagement Approach development of a product work well planning and controls stable. The structure at all levels to energize marketable and increasing sales. are needed. Middle can become more the organization. Use product/service while Growth in sales and management takes divisionalised and the of information system managing necessary marketing function. responsibility for culture can become to capitalize on finance. Growth limited Functional operations while top bureaucratic due to internal knowledge. to functions like Design, organization structure management focuses high degree of Formal approach to manufacturing or adopted. on business formalization. managing business service. Flat strategies. Growth in change. organizational structure staff functions.
Business Challenge• Being a start up , which had proven its business model and entered the growth phase, the client’s biggest challenge was to scale up its operations without diluting the delivery quality.• Lack of middle management layer had created a communication gap between founders and employees .• There were no defined processes with checkpoints that the design team could follow resulting in mistakes, rework and loss of time.• Building a sense of ownership amongst employees and retaining talent would lay a strong organizational foundation
PeopleWiz’s Approach• Organization Design: PeopleWiz‘s approach was to work closely with the management to clearly articulate their business strategy and design a supporting operating model which strengthened the delivery capability. Key stakeholders were engaged to build consensus on the operating model and organization wide employee communication was carried out.• People Management: With an objective of deploying scalable HR processes, PeopleWiz Consulting crafted the basic framework of policies supporting the new organization structure. Talent attraction and acquisition was managed by the HR business partner by developing suitable recruitment channels and introducing best practices in the selection processes.
Benefits to the ClientOrganization Process Financials• An optimally designed • Processes like •With a promising annual structure with clearly manpower hiring, role result and a healthy defined roles and allocation, order pipeline, the client responsibilities has determination of salary is poised to achieve its given Altair a levels are now surefooted start to financial objectives. streamlined and become a professionally •PeopleWiz continues to professionally managed. be their HR arm for managed organization. • The client now has a people management This has boosted the structured approach confidence of existing towards computing employees in the incentives, giving leadership and given increments and the management the rewarding employees right platform to grow for their performance and attract quality manpower.