The
objective of reorganizations is the alignment of one or more
organizations based on a strategic business objective. A key premise to
successful reorganizations is that all elements of the organization,
such as systems, processes, people, rewards, policies, and structure
have to be taken into account. A singular focus, such as a focus on
systems and process alone, may not yield the desired results and may
actually degrade the overall performance of anorganization if that
focus is poorly aligned to other organizational components, for
example, to structure and rewards.
Sample objectives of reorganizations include:
•
- Developing or refining a reporting
structure to optimize the ROI of a
new system and link it to an overall business strategy
- Improving efficiencies by creating
and aligning the responsibilities
and accountabilities within an organization
- Cutting cost and
increasing efficiencies by eliminating redundancies
and responsibility overlaps
SOLUTION
DESCRIPTION - OUR APPROACH
Organizational
structure is just one of the essential components of organizational
design. On a high level, the process of organizational alignment can be
described in the model below. However, the detailed activities are
largely defined by the strategic objective of the program, such as cost
cutting, efficiency improvement, or
outsourcing.
STEP
1: UNDERSTAND THE STRATEGIC INTENT
- •Articulate
the company’s strategic intent
- Understand implications/changes to
existing organizations: strategy,
resources, competencies
- Understand current state
limitations and strengths
- Document other specific
objectives that make up the business case for
change
STEP
2: TRANSLATE STRATEGY INTO REQUIREMENTS
•
- Reflect strategy and other
objectives in organizational design
requirements
- Establish criteria with which to
evaluate structural alternatives
against
- Discuss and determine structural
priorities and trade-offs
STEP
3: DEVELOP THE CONCEPTUAL DESIGN
•
- Determine and develop the basic
shape of the organization
- Determine strategic grouping
alternatives; evaluate against design
principles & other criteria
- Determine linking mechanisms and
evaluate against design principles and
other requirements
- Select a structural alternative to
develop
STEP 4:
DEVELOP THE DETAILED DESIGN
•
- Validate the conceptual design will
work, including how processes are
distributed across the business
- Group and link alternatives at a
detailed level
- Align roles to the detailed design
and enterprise performance measures
STEP
5: TRANSITION PLANNING
•
- Determine impact of organizational
changes
- Determine sequence and method for
rolling out changes
- Develop roadmap of transition
- Develop transition infrastructure
necessary for implementation
(including program management office)
STEP
6: IMPLEMENTATION
•
- Execute transition and change
enablement plans
