Organizational Development
Nº 58
Another word about Organizational Design
Today, we jump back to a topic we started last week. Namely, organizational design. We touched on the basic premise of this work, and ended by listing the steps needed for its success.
Let’s dive into these steps one by one next:
- Developing a case for change
Many times, senior management teams or the corporate leadership groups go through either a strategic planning process or an executive team development process prior to beginning a redesign initiative.
Depending on how clear they are about their strategy, how well developed their internal capabilities might be, the maturity of their planning process, and how well they work together as a team, this work alone can take anywhere from a few days to weeks.
In essence, developing a case for change is about conducting an environmental analysis to validate the need for a change.
If you have not lead any such workshops as a HR professional before, please leave a comment under our link so we can make it a point to explain how this work can be led.
- Assessment of current state
Assessment of current state is taking time to understand current challenges, strengths, and limitations of an organization. There are many different assessments and transformation models available to organizations for leading such work. Some of these tools could include (just a few examples):
- For leadership assessment: DISC, Lencioni Model, IMD
- For capability/core process assessment: APQC.
- For systems assessment, depending on use: Oracle, SAP, ERP, etc.
- For culture assessment: OCAI.
Ultimately, though, what we are looking to understand is how critical parts of organization are working, how these parts are interrelated, whether there are any key interdependencies, the health of the organization, and where progress is needed.
- Design of the new organization
This is the heart of the organizational design process. This is where we design what the future organization is going to look like.
There are formal and informal components that need consideration while initiating redesign. For example, we would need to consider how decisions are being made as a formal process change or we need to consider how people make sense of their work as an informal process change.
Where there is no subject matter expert available in a company, it would be most beneficial to reach out to external talent during design.
- Plan of implementation
Implementation planning is about reviewing in detail the interdependencies to understand where and how much change management may be required, the pivotal places in the organization to monitor transformation, who to care for and at what frequency, etc.
Reward systems, performance systems, information sharing, decision-making, and management systems are often changed and adjusted during organizational design work. So we expect to see some challenges in regard to adaptation in specific places of the organization. Identifying these early on and working a collaboration plan into implementation steps is most helpful.
- Leading implementation
Last but not least, the final step is to operationalize the design. During this stage, roles and people are organized into the new structure and the change may be supported with some training, team effectiveness work, and skill-building activities.
It is important to recognize some of the changes can be accomplished quickly. Others may require implementation over a longer period of time.
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