Indicators That Your Clients Need Organization Redesign

 

An effective organization design is a lot more than what you might find on an org chart. It is the way in which an organization coordinates activities towards product and service quality and delivery effectiveness and efficiency. 

FOUR INDICATORS OF EFFECTIVE ORGANIZATION DESIGN:

  • Aligns with broader organization: The organization strategy brings together the business and people strategies so that what the organization wants to deliver on…it can deliver on. Sub-units also connect with the rest of the broader organization.
  • Facilitates effective workflow: Processes for creating and delivering products/services to customers/clients are maximized.
  • Enhances partnership and synergy: Work is linked horizontally across departmental and geographic boundaries (which is especially important in today’s global world).
  • Enables individual performance: Employees at every level are empowered and motivated to do their jobs effectively and efficiently.

Another way to think about an effective organization design is to understand the “fit” among all the different components of an organization. Compare an organization to the human body, for example. In the human body there are various systems – neurological, pulmonary, vascular etc. A change made to one system in the body affects the rest of the body; and for maximum health, all systems must work together. By the same token, consider what happens when you change the size of the wheels and tires on your car; other systems such as steering, braking and suspension must be aligned in order for the car to perform at its peak.

Here's a quick assessment you can use with your clients to help them determine if now is the time for a redesign. Have them review the following 10 questions and choose “yes” or “no” to find out if they need your help in this area.

  1. Does your overall organizational structure match the strategy of your organization?
  2. Does your organization structure support your organization’s successful and efficient functioning?
  3. Do your staffing levels (headcount) meet your organization’s needs?
  4. Do people receive the information they need, when they need it?
  5. Are there gaps or overlaps between roles?
  6. Are there structural challenges that lead to duplicated work, missed tasks, lack of alignment, lack of accountability, etc.?
  7. Is there an effective overall executive leadership team that encourages cross-functional synergy and exceeding customer expectations?
  8. Do teams from different areas partner well together?
  9. Are individuals clear about their roles and responsibilities?
  10. Do employees have the knowledge, skills, resources and authority to do what they need to do to succeed?

If the majority of their responses were yes: Your client have an effective organization design. You can offer them support to ensure that their organization is flexible and nimble enough to respond to changes in the marketplace and with the broader company.

If the majority of their responses were no: Your client may not realize this, but their organization could be a root cause to many other challenges they are experiencing. Offer a  comprehensive organization redesign.

If the majority of your responses were don’t know: Your client may have other issues that you  will need to address in conjunction with organization redesign such as strategy development or employee engagement.

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