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.
Organization design is about building a foundation that fosters collaboration, enables communication, builds strong relationships, and enhances productivity and agility.
For most companies, the design process leads to a more effective organization design, significantly improved results (profitability, customer service, internal operations), and employees who are empowered and committed to the business. The hallmark of the design process is a comprehensive and holistic approach to organizational improvement that touches all aspects of organizational life, so you can achieve:
Excellent customer service
Reduced operating costs
Improved efficiency and cycle time
A culture of committed and engaged employees
A clear strategy for managing and growing your business
Our approach starts with understanding your business strategy and goals. We then focus on gaining a deep understanding of the current state of the organization, from the internal interactions and styles of the existing team to how the organization interfaces with other teams and organizations.
From there, we identify opportunities for improvement. Functions are mapped to define performance and interactions are aligned among teams. Only then do we consider individual roles, reporting relationships, incentives and compensation, and the potential career path.
Any reorganization requires a thoughtful approach to change management, including the right leadership messaging and communications to keep the organization as productive as possible throughout the transition.
Innovative Organizational design Solution
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. Organizations that don’t periodically renew themselves suffer from such symptoms as:
Inefficient workflow with breakdowns and non value-added steps
Redundancies in effort (“we don’t have time to do things right, but do have time to do them over”)
Fragmented work with little regard for good of the whole (Production ships bad parts to meet their quotas)
Lack of knowledge and focus on the customer
Silo mentality and turf battles
Lack of ownership (“It’s not my job”)
Cover up and blame rather than identifying and solving problems
Delays in decision-making
People don’t have information or authority to solve problems when and where they occur
Management, rather than the front line, is responsible for solving problems when things go wrong
It takes a long time to get something done
Systems are ill-defined or reinforce wrong behaviors
Mistrust between workers and management
Organization Design Framework
Talalweh’s Organization Design Framework outlines the concepts that must be considered to create a well-designed organization, which includes alignment of the roles, responsibilities, incentive structure, and interactions of its people and capabilities with its business context, goals, and culture. This alignment helps foster collaboration, innovation, and productivity.
Design the new organization
- Defining your basic organizing principle. (Will you organize primarily around functions, processes, customer-types, technologies, geographies, etc.?)
- Streamlining core business processes—those that result in revenue and/or deliverables to customers.
- Documenting and standardizing procedures.
- Organizing people around core processes. Identifying headcount necessary to do core work.
- Defining tasks, functions, and skills. What are the performance metrics for each function/team? 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.), mission, staffing, etc. and where should these should be located.
- Defining the management structure that provides strategic, coordinating and operational support.
- Improving coordinating and development systems (hiring, training, compensation, information-sharing, goal-setting, etc.).
- Charter the design process
- Assess the current state of the business
- Design the new organization
- Implement the design