Why Change Can Be Difficult to Accomplish Change can be difficult for you and your client to accomplish for a variety of reasons.
Before you even start the design, you first take any consideration for people and titles off the table. You start with a blank slate and think through the functions the business must perform to succeed in its chosen growth strategy now and over time.
What are those functions for your business? In addition to supporting the chosen strategy, a good structure should 1 clarify the purpose and accountabilities of each organizational function; 2 place each major and minor function in its correct location relative to other functions by balancing effectiveness and efficiency, short range and long range, autonomy and control; 3 clarify the key performance indicators KPIs of each role; and 4 identify which people are accountable for performing different functional roles.
In a picture, a sound organizational design will look something like this below. A sample structure using sound design principles. Note that every structure is unique. Prior to this organizational redesign, the company had stalled out in its growth trajectory and the culture was deteriorating.
The team was suffering from role confusion, unclear accountabilities, a lack of real strategic priorities, and stalled execution. Revenues and profits were flat for several years prior.
Much of this has to do with getting the structure right. In the structure above, each large grey box represents the major functions of the business.
The smaller beige boxes represent the primary sub-functions within those domains. The blue boxes under each major function capture some of the high-level KPIs for that functional area.
Calling out the KPIs in the structure helps to bring clarity and focus to the structural discussion and ultimate adoption of new roles by the individuals involved.
Only after the design is set up correctly for the chosen strategy—again, independently of the individuals involved—should you assign accountability for each function. What matters at this conceptual stage of the design is that a single person, whether as a dedicated role or wearing a temporary hat, is held accountable for the success of that area of the business.
This shorthand code allows the company to have a shared definition of some key management requirements for each role, as well as the type of leader who is best suited to own it. It helps tremendously with hiring and creating role alignment and satisfaction among the staff.
Actually, any pre-existing silos in the business disappear with the adoption of an effective team-based decision making process that creates transparency and cohesion, therefore bringing the new organizational structure to life.
In other words, creating unarguable accountability for the key organizational functions must also be matched with an information-sharing and decision-making process that creates radical transparency and rapid execution across the organization.
The Science of Growing a Business. That seems sort of old-fashioned.Aims and Scope. Successful organizations respond intelligently to factors which precipitate change. Economic climates, political trends, changes in consumer demands, management policy or structure, employment levels and financial resources - all these elements are constantly at play to ensure that organizations clinging on to static structures will ultimately lose out.
Nov 06, · No organization design or method of management is perfect.
And any form can suffer from a variety of problems that develop because of the design itself. This is particularly true when a . Defining Organizational Change.
Organizational change is both the process in which an organization changes its structure, strategies, operational methods, technologies, or organizational culture. "Finally, we have book that takes Process Improvement from theory to templates.
There are a lot of books that poke at pieces of process improvement structure, but this book finally takes us across the entire spectrum. It is a valuable resource for identifying and understanding the role and impact of a process within an organization, and it is a strong ongoing reference.
Organizational change occurs when a company makes a transition from its current state to some desired future state.
Managing organizational change is the process of planning and implementing. Organizational change management (OCM) is a framework for managing the effect of new business processes, changes in organizational structure or cultural changes within an enterprise. Simply put, OCM addresses the people side of change management.