Migrating to cloud-based business applications called for changes to the IT organization. Decision to shift from a product-based business model to a customer-centric one means yet another reorganization, but this one would be different
It had to go beyond shifting the lines and boxes in an org chart. It would have to change the company’s most fundamental building blocks
Addressing the numerous complexities that impact organizational performance, we help organizations optimally align resources to maximize productivity, realize goals, and achieve missions in the most efficient way possible
- How people in the company made decisions
- Adopted new behaviors, rewarded performance, agreed on commitments
- Managed information, made sense of that information
Addressing the numerous complexities that impact organizational performance, we help organizations optimally align resources to maximize productivity, realize goals, and achieve missions in the most efficient way possible.
These fundamental guidelines , drawn from experience, can help you reshape your organization to fit your business strategy.(10 Principles of Organization Design by Gary L. Neilson, Jaime Estupiñán, and Bhushan Sethi)
Declare amnesty for the past
Organization design should start with corporate self-reflection: What is your sense of purpose? How will you make a difference for your clients, employees, and investors? What will set you apart from others, now and in the future? What differentiating capabilities will allow you to deliver your value proposition over the next two to five years?
Design with “DNA.
Organization design can seem unnecessarily complex; the right framework, however, can help you decode and prioritize the necessary element
Fix the structure last, not first
Company leaders know that their current org chart doesn’t necessarily capture the way things get done — it’s at best a vague approximation. Yet they still may fall into a common trap: thinking that changing their organization’s structure will address their business’s problems.
Make the most of top talent
Talent is a critical but often overlooked factor when it comes to org design. You might assume that the personalities and capabilities of existing executive team members won’t affect the design much.
Focus on what you can control
Make a list of the things that hold your organization back: the scarcities (things you consistently find in short supply) and constraints (things that consistently slow you down). Taking stock of real-world limitations helps ensure that you can execute and sustain the new organization design.
Design your organization so that it’s easy for people to be accountable for their part of the work without being micromanaged. Make sure that decision rights are clear and that information flows rapidly and clearly from the executive committee to business units, functions, and departments
Benchmark sparingly, if at all
One common misstep is looking for best practices. In theory, it can be helpful to track what competitors are doing, if only to help you optimize your own design or uncover issues requiring attention.
Let the “lines and boxes” fit your company’s purpose.
For every company, there is an optimal pattern of hierarchical relationship — a golden mean.
Accentuate the informal
Formal elements like structure and information are attractive to companies because they’re tangible. They can be easily defined and measured
Build on your strengths
Overhauling the organization is one of the hardest things for a chief executive or division leader to do, especially if he or she is charged with turning around a poorly performing company. But there are always strengths to build on in existing practices and in the culture