Leadership Why is organizational design and structure important to the success of an organization?
A well-designed organization ensures that the form of the organization matches its purpose or strategy, meets the challenges posed by business realities and significantly increases the likelihood that the collective efforts of people will be successful. As companies grow and the challenges in the external environment become more complex, businesses processes, structures and systems that once worked become barriers to efficiency, customer service, employee morale and financial profitability.
Charter the design process As senior leaders, you come together to discuss current business results, organizational health, environmental demands, etc.
At times, senior teams may go through either a strategic planning process or an executive team development process prior to beginning a redesign initiative, depending on how clear they are about their strategy and how well they work together as a team. Using our Transformation Modelwe facilitate a comprehensive assessment of your organization to understand how it functions, its strengths and weaknesses, and alignment to your core ideology and business strategy.
Defining your basic organizing principle. Will you organize primarily around functions, processes, customer-types, technologies, geographies, etc.? Documenting and standardizing procedures. Organizing people around core processes. Identifying headcount necessary to do core work.
Organizational Design & Operating Model A well-designed operating model is the bridge that allows a company to turn its strategy into results. Bain Operating Model helps you clarify where and how critical work gets done in the organization . Why is organizational design and structure important to the success of an organization? Good organizational structure and design helps improve communication, increase productivity, and inspire innovation. It creates an environment where people can work effectively. As organization structures have become more fluid and organic, organization design is no longer the purview of a handful of senior executives supported by .
Defining tasks, functions, and skills. How are they evaluated and held accountable? Determining facility, layout and equipment needs of various teams and departments throughout the organization. Identifying support resources finance, sales, HR, etc.
Defining the management structure that provides strategic, coordinating and operational support. Improving coordinating and development systems hiring, training, compensation, information-sharing, goal-setting, etc. At some point the design process morphs into transition planning as critical implementation dates are set and specific, concrete action plans created to implement the new design.
And a key part of this step includes communicating progress to other members of the organization. A communications plan is developed that educates people in what is happening.
Implement the design Now the task is to make the design live. People are organized into natural work groups which receive training in the new design, team skills and start-up team building. New work roles are learned and new relationships within and without the unit are established. Equipment and facilities are rearranged.
Reward systems, performance systems, information sharing, decision-making and management systems are changed and adjusted. Some of this can be accomplished quickly. Some may require more detail and be implemented over a longer period of time.
A few years back we worked with a company within the aluminum industry.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.
The process focuses on improving both the technical and people side of the business.
A boundaryless organization is one in which its design is not defined by, or limited to, the horizontal, vertical, or external boundaries imposed by a predefined structure.
In other words it is an unstructured design. There is a relationship between organizational design and structure because of different factors. Organizational size, organizational life cycle.
Organizational structure is the skeleton of an organization. It is an expression of who is performing the various functions and tasks of a company and how these people. As organization structures have become more fluid and organic, organization design is no longer the purview of a handful of senior executives supported by .
In fact, organizational design encompasses much more than simply the structure: organization design is the process of aligning an organization's structure with its mission. This means looking at the complex relationship between tasks, workflow, responsibility and authority, and making sure these all support the objectives of the business.