How to manage organization re-design processesNicolay Worren
Managing organization re-design processes requires three key requirements: creating alignment with mission and strategy, creating coherency across organizational dimensions, and creating trust through a fair and transparent process. Effective re-design requires a systematic approach with phases for planning, design, and implementation. It is important to balance top-down direction with extensive involvement from stakeholders and collect valid data to develop alternative solutions.
The simulation involves grouping 36 players with different colored shirts to represent interdependencies into tables to minimize coordination costs. Over 10 rounds, the tables can make moves to reconfigure the groupings. The total coordination costs gradually reduce as optimal configurations are approached. The simulation is analogous to an organization changing its grouping structure from one criterion like geography to another like product. It shows how design principles can be applied and the tradeoff between optimal configurations and actual decisions due to limits in time and options.
Five layers of organizational architecturesNicolay Worren
This document discusses five layers of organizational architectures: governance model, operating model, resource model, contracting model, and social network model. These layers provide a framework for understanding different aspects of how an organization is designed and functions. The document examines each of these five layers separately.
Defining high level organizational architecturesNicolay Worren
The consultant was hired to help clarify roles and responsibilities across a large Nordic bank's organizational units. They gathered data through interviews and documentation. They mapped the bank's high-level functions to its organizational structures, noting deviations from its governance principles. They also modeled alternative structures with more independent functions to potentially improve performance by reducing coupling between roles. The analysis aimed to increase understanding of current issues and raise awareness of design options.
This document discusses the debate around separation versus integration in organization design. It provides three arguments for separation: 1) to avoid conflict of interest, 2) to minimize coordination costs, and 3) to avoid goal conflicts. The document uses examples from Nestle to illustrate how establishing separate units can pursue innovation goals independently from existing business units. Overall, the document analyzes the tradeoffs between separation and integration and presents arguments for why separation of responsibilities may be preferable in some cases.
How to manage organization re-design processesNicolay Worren
Managing organization re-design processes requires three key requirements: creating alignment with mission and strategy, creating coherency across organizational dimensions, and creating trust through a fair and transparent process. Effective re-design requires a systematic approach with phases for planning, design, and implementation. It is important to balance top-down direction with extensive involvement from stakeholders and collect valid data to develop alternative solutions.
The simulation involves grouping 36 players with different colored shirts to represent interdependencies into tables to minimize coordination costs. Over 10 rounds, the tables can make moves to reconfigure the groupings. The total coordination costs gradually reduce as optimal configurations are approached. The simulation is analogous to an organization changing its grouping structure from one criterion like geography to another like product. It shows how design principles can be applied and the tradeoff between optimal configurations and actual decisions due to limits in time and options.
Five layers of organizational architecturesNicolay Worren
This document discusses five layers of organizational architectures: governance model, operating model, resource model, contracting model, and social network model. These layers provide a framework for understanding different aspects of how an organization is designed and functions. The document examines each of these five layers separately.
Defining high level organizational architecturesNicolay Worren
The consultant was hired to help clarify roles and responsibilities across a large Nordic bank's organizational units. They gathered data through interviews and documentation. They mapped the bank's high-level functions to its organizational structures, noting deviations from its governance principles. They also modeled alternative structures with more independent functions to potentially improve performance by reducing coupling between roles. The analysis aimed to increase understanding of current issues and raise awareness of design options.
This document discusses the debate around separation versus integration in organization design. It provides three arguments for separation: 1) to avoid conflict of interest, 2) to minimize coordination costs, and 3) to avoid goal conflicts. The document uses examples from Nestle to illustrate how establishing separate units can pursue innovation goals independently from existing business units. Overall, the document analyzes the tradeoffs between separation and integration and presents arguments for why separation of responsibilities may be preferable in some cases.
This document discusses a new paper that suggests design rules for situations where organizational roles are both interdependent and conflicting. The paper proposes that roles within organizations are often connected but can also experience incompatible demands. It puts forth guidelines for navigating circumstances where roles must collaborate but also encounter role conflicts.
This pharmaceutical firm is reorganizing 12 employees across four departments into project teams to improve collaboration and speed up decision making. The employees currently:
- Perform various R&D roles such as conducting experiments, analyzing clinical data, developing new compounds, and performing data analysis.
- Regularly share information, procedures, plans and best practices with one another across department lines.
- Create tools, files, checklists and documentation that are used by others both within and across departments.
The firm is asking for help in determining which employees should be placed on the same project teams based on their current working relationships and dependencies.
Can we scale up agile principles to the organizational level? In this presentation, I argue that this is difficult. Organizational flexibility requires planning and coordinationa between teams/sub-units, something which is not adressed in the agile approach. I describe the multidimensional model as an overall organizational model that supports flexibility and adaptability.
Results of survey distributed to participants in the organizational design elective at the Frankfurt Institute of Finance & Management, Spring 2018. See https://www.organizationdesign.net for background information
Managing Interdependencies in Complex OrganizationsNicolay Worren
Presentation held at the Organization Design Forum conference in the US, 2006.
For more on this and related topics, see my blog http://www.organizationdesign.net
This document discusses a new paper that suggests design rules for situations where organizational roles are both interdependent and conflicting. The paper proposes that roles within organizations are often connected but can also experience incompatible demands. It puts forth guidelines for navigating circumstances where roles must collaborate but also encounter role conflicts.
This pharmaceutical firm is reorganizing 12 employees across four departments into project teams to improve collaboration and speed up decision making. The employees currently:
- Perform various R&D roles such as conducting experiments, analyzing clinical data, developing new compounds, and performing data analysis.
- Regularly share information, procedures, plans and best practices with one another across department lines.
- Create tools, files, checklists and documentation that are used by others both within and across departments.
The firm is asking for help in determining which employees should be placed on the same project teams based on their current working relationships and dependencies.
Can we scale up agile principles to the organizational level? In this presentation, I argue that this is difficult. Organizational flexibility requires planning and coordinationa between teams/sub-units, something which is not adressed in the agile approach. I describe the multidimensional model as an overall organizational model that supports flexibility and adaptability.
Results of survey distributed to participants in the organizational design elective at the Frankfurt Institute of Finance & Management, Spring 2018. See https://www.organizationdesign.net for background information
Managing Interdependencies in Complex OrganizationsNicolay Worren
Presentation held at the Organization Design Forum conference in the US, 2006.
For more on this and related topics, see my blog http://www.organizationdesign.net
3. www.nicolayworren.no
...måten vi faktisk jobber på...
”Vel, vi er formelt en
avdeling, ja, men vi har
ikke vært på talefot på to
år....”
”Det kommer nok an på
hvem du spør...”
”Nå spør du vanskelig...”
” Vårt team inkluderer faktisk
fire personer...det er ikke så
lett å se på org. kartet...”
HVEM ER INTERN KUNDE, OG HVEM
ER LEVERANDØR?
”Jeg jobber både for adm.
dir. og CFO, og så leverer jeg
også noe til COO...betyr det
at jeg rapporterer til tre
personer?”
HVEM RAPPORTERER DU TIL?
HVORDAN FUNGERER DIN AVDELING? HVEM TAR BESLUTNINGER? HVEM ER MED I DITT TEAM?
4. www.nicolayworren.no
...eller måten vi burde jobbe på for å realisere våre strategiske mål.
”Vi burde skape en
større og mer
slagkraftig enhet...”
”...da burde vi se på
hvordan lederteamet er
satt sammen...
”Hvis vi skal nå våre
strategiske mål burde
vi ha en felles front
mot kunden....”
”For å lykkes må vi
ha tydeligere
resultatansvar...”
5. www.nicolayworren.no
1. Vi kan ikke ta et organisasjonskart for god fisk
2. For å forbedre organiseringen er det nødvendig å:
Det følger av dette at:
c)
Ha evnen til å utforme en
organisasjon som gjør det
mulig å realisere målene
b)
Vite hva dine strategiske
mål er
a)
Forstå hvordan folk faktisk
jobber