Organizational restructuring is typically driven by significant changes in a company’s strategy or shifts in their competitive and economic environment that require leadership to undertake a large-scale initiative. The change required is both comprehensive and far-reaching and often poses serious financial, operational, customer and employee risk if done poorly.
We work closely with leaders to deploy a holistic and comprehensive approach to evaluate and implement the right combination of changes in business process, people, technology, structure, governance and culture that are needed to execute a strategic shift, thwart the competition or weather periods of economic uncertainty. As importantly, we also help leaders manage this change in a manner that ensures their workforce understands and embraces the new organization through their active engagement in its design and implementation.
We recommend that instead of being obsessed with boxes and lines in an organizational chart consider using the following steps to align your strategy, organization, and talent for success.
- Clarify the value drivers of your strategy to understand the key levers to achieving it. Take a hard look at discerning the most critical drivers and avoid the temptation of identifying everything, including the kitchen sink, as creating value.
- Assess your current organization design analytically and holistically to pinpoint what is limiting your ability to unlock value. Remember to always “start with the work” to understand if your core and support business processes are delivering the results you need and expect. Don’t stop there: take a hard look at how you measure performance, gather and share information, and govern and make key decisions. Based on this, determine the changes in business processes, metrics, information flows, and governance needed to successfully execute your strategy.
- Evaluate how your current structure enables or impedes the performance of your core and support business processes, the flow and quality of information needed to get the work done, the speed and quality of decision-making, and (don’t forget!) the degree to which your structure (dis)engages the hearts and minds of your workforce. (Think Frederick Taylor and Scientific Management — a great model for employee disengagement!). Use this insight to make informed and targeted changes in your structure to fully enable and engage your organization.
- Take a hard look at your people and your talent management processes and ask yourselves some tough questions: No kidding, do I have the right people, in the right place, with the right skills? Am I able to attract and retain the best talent? Is my organization a ” talent factory” that develops the talent I need to run my business? Do I really manage performance? If your answers are unsatisfactory, make the needed changes in your management processes and practices to ensure you have number, type, and quality of people your business needs.
- Routinely measure and fine-tune your design. Chances are that your initial decisions will not play out exactly as you had hoped given the dynamics of your organization and the environment in which you operate your business.