ORGANIZATION DESIGN + DEVELOPMENT

PEOPLE AND ORGANIZATION

Smart Design for Performance

In a time of economic turbulence, disruptive technology, globalization, and unprecedentedly fierce competition, the priority concern for many business leaders is to adapt to the changing conditions in order to boost their company’s performance. For that purpose, they frequently turn to organization design for help.

DRIVE AND SUSTAIN REORGANIZATION PROGRAMS

In today's environment, where change is the only constant, creating competitive advantage takes more than the right strategy; it takes an adaptable, high-performing organization.Yet as common as reorganizations have become, what's even more common is their high failure rate. Less than half of all reorganization efforts are successful.

Our Organization Design and Development practice  ensures the success of large-scale reorganization programs to create better, faster, deeper, and more sustainable high-performing organizations. The keys to success lie in our collaboration with clients to make them more capable and in our comprehensive ecosystem of tools, databases, and expertise.

We enable clients to develop capabilities throughout the phases of reorganization. By employing a holistic approach to reorganizing—through synchronizing structure with strategy—we can ensure the right individuals are in the most appropriate, clearly defined roles.

UNLOCKING VALUE IN ORGANIZATIONS AND PEOPLE.

We strongly believe that world-class people and organizational capabilities are a source of competitive advantage. Our proven solutions create tangible and lasting value for our clients.

PEOPLE AND ORGANIZATION

World-class people and organizational capabilities are a source of competitive advantage. Successful organizations are agile and focused, with the right leaders in the right positions. They have strong change management capabilities and the flexibility to embrace new ways of working in an age of constant digital disruption and high-paced evolution. Winning organizations have high-performance cultures that engage and inspire their employees—and they align all functions to support a winning strategy.

A company’s performance is a direct consequence of its people’s behavior, which in turn is a response to the contexts in which these people find themselves. The performance of any organization is driven by the behaviors of the individuals in that organization: the decisions they make, the activities they undertake, and their interactions. These behaviors are rational—a rational reaction to a particular situation; they are not “hyper-rational,” as the behaviors of a computer algorithm might be. Rather, they represent the individuals’ perceived best strategy in the situation. To change these behaviors, and hence raise the organization’s performance level, you have to make a new set of behaviors rational; to do that, you have to change the situation, or context.

The new context must encourage cooperation. Company performance improves strongly when organizations raise the level of cooperation among the individual actors and align individual goals more closely with company goals. Cooperation, in this sense, occurs when one individual takes action to improve the performance of another; it brings synergy, such that everyone’s efforts combine in the most effective way and benefit the whole group. Cooperation is therefore the essence of teamwork; the whole is greater than the sum of the parts.

Our consultants help clients design organizations to reduce costs, drive growth, and strengthen both short-term performance and long-term organizational health.

WHY REDESIGN THE ORGANIZATION?

Organizational redesign involves the integration of structure, processes, and people to support the implementation of strategy and therefore goes beyond the traditional tinkering with “lines and boxes.” Today, it comprises the processes that people follow, the management of individual performance, the recruitment of talent, and the development of employees’ skills. When the organizational redesign of a company matches its strategic intentions, everyone will be primed to execute and deliver them. The company’s structure, processes, and people will all support the most important outcomes and channel the organization’s efforts into achieving them.

When do executives know that an organization isn’t working well and that they need to consider a redesign? Sometimes the answer is obvious: say, after the announcement of a big new regional-growth initiative or following a merger. Other signs may be less visible—for example, a sense that ideas agreed upon at or near the top of the organization aren’t being translated quickly into actions or that executives spend too much time in meetings. These signs suggest that employees might be unclear about their day-to-day work priorities or that decisions are not being implemented. A successful organizational redesign should better focus the resources of a company on its strategic priorities and other growth areas, reduce costs, and improve decision making and accountability.

DEFINE THE PURPOSE.

By redesigning the organization, your company can resolve many stubborn issues of strategy and execution. But before embarking on the redesign, make sure to identify clearly the company’s current performance shortfall (that is, the gap between the company’s current performance and its target performance) and hence the precise aims of the reorganization effort—with regard to competitive advantage, strategic priorities, or organizational pain points.

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© 2019 ACAL Consulting

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Our consultants help clients design organizations to reduce costs, drive growth, and strengthen both short-term performance and long-term organizational health.