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Organization Design 

86%

Organization Redesign Is A Fact of Life​

Redesigning the organization is no longer a rare occurrence.
Competitive pressures are causing more and more organizations to undertake redesign initiatives.  This explains why a recent survey revealed that 92% of companies surveyed indicated that "redesigning the way we work" is one of their most important challenges. [1] Another survey of leaders reported that the number one issue on their minds was "How to redesign our organization to meet the demands of the workforce and business climate." [2]
Organizations are acting on those concerns in a big way.  In a study conducted by McKinsey and Company:
  • 82 percent of respondents have experienced a redesign [3]
  • 70 percent report that their most recent reorganizations were implemented within the past two years [4]
  • Redesigns are becoming a regular part of corporate life across the globe 

Why Is Your Org Design Important?

The right Organization Design drives performance. 
An effective organization design clarifies how decisions get made, how work gets done, and defines who is responsible for what.  If you get your organization design right, you can really improve performance. The right organization design can help you to make decisions faster, respond more quickly to changes in markets or competitors, clarify roles and responsibilities, breakdown silos, and reduce bureaucracy, cost, and frustration. 
Organization redesigns are challenging.
Even though it is becoming the norm, redesigning an organization and implementing it is a significant undertaking. A reorganization can affect a number of people, and can result in the elimination of certain positions, and in the reassigning of people to new roles, and/or new groups. A reorganization can engender the creation of new departments, or the elimination of departments, can involve outsourcing of work, foster new work processes, bring about new leadership assignments, and a host of other such challenges.  It probably should come as no surprise that the majority of reorganizations are not successful.  A 2014 study of 1300 executives revealed that over half were not successful: [5]

 

 

 

 

 

How We Help

Great Org Design goes beyond the org chart.
Organization Design goes far beyond just drawing boxes on an org chart.  Effective   
organizational design is the alignment of all parts of an organization to its Strategy. It includes: 
  • How the organization is structured
  • The skills and capabilities of people
  • The design of processes that guide the organization
  • How work gets done
  • People and information systems 
 
An organization excels when all these elements are designed to fit together. Put simply, Org Design is the deliberate process of designing each of the interconnected components of the organization to obtain the optimal fit for performance. We look at all these factors when we are planning a redesign, and we help you to create the optimal design for your organization to ensure it performs at its highest level.
Organization Design impacts performance.
  • More rapid decision-making improves flexibility and agility to respond more quickly to change
  • More rapid problem-solving improves efficiency 
  • Clear roles and responsibilities mean less confusion and conflict
  • Reduced complexity results in improved safety, quality, delivery, and costs
  • Streamlined organization design improves communications across all levels
  • Clear accountability provides for better results at all levels
  • Elimination of duplicate tasks reduces expenses and improves efficiency
  • Optimizing management "spans and layers" simplifies the organization
  • Cycle-time of key processes is reduced
  • Bureaucracy is minimized, reducing frustration, time delay, and costly administration
 
We help your redesign to be successful.
  • Create an organization design that will link to your strategy
  • Design a structure and all components of the organization that will meet your business needs
We also make sure your implementation is successful.
Having a well-designed organization is simply the first step in the redesign process.  In order for the redesign to be successful, the implementation must go flawlessly.  Since the implementation always involves people, this is where redesign efforts sometimes "go off the rails."  Implementation requires deciding on;
  • The process by which new roles will be staffed and how people will be selected
  • Who will staff the leadership roles
  • Who will staff the roles at lower levels
  • How to best communicate to the organization
  • Timing and steps to transition to the new organization
 
  We help you to ensure a smooth implementation by guiding your team through:
​those decisions, in order to ensure that your implementation is a successful one.
Organization Design is more science than art.
 
We utilize a classic, structured methodology that
has proven to be successful  across a variety of
organizations in various industries.  We closely 
involve leaders in every element of the design
process -- from assessment of the current
organization to the creation of design alternatives
and then to implementation.  We know that in order
for an organizational design to be effective, it has to
be adopted by the organization at all levels, including
the leadership.
 
  

Planning an organization redesign,            but not sure how to get started? 

Give us a call and we can figure it out together. 

[1]  Deloitte.  "2019 Global Human Capital Survey"
[2]  Deloitte.  "2019 Global Human Capital Survey"
[3] "The Secret of Successful Organization Redesigns." McKinsey Global Survey Results.  2014
[4] "The Secret of Successful Organization Redesigns." McKinsey Global Survey Results.  2014
[5] "The Secret of Successful Organization Redesigns." McKinsey Global Survey Results.  2014
Failed redesign efforts have real consequences.  Not only are failed efforts terribly demoralizing for the Associate population, they can result in lower profitability, lost clients, added costs, reduced Associate engagement, and a loss of confidence in senior management.  If reorganizations are unavoidable, it's important to get them right.  
Applications
44%%

<  Organization restructuring
<  Business transformation
<  Business process improvement
<  Merger & acquisition
< Facility start-up
< ERP or other major software implementation

92%

 

"Bob was the primary architect of our redesign of our R&D function.  He led the process, facilitated our design sessions, and helped us to come up with some good design options. Once we selected our final design, he worked with us to determine how to staff the leadership roles.  Our restructure resulted in elimination of duplicate roles, cost savings, and improved product development efficiency."

SVP R&D -- food and beverages
"As a result of an acquisition, we needed to integrate two separate Engineering groups into a single organization.  ChangePraxis helped us to 

map out the kinds of work that each group was doing, and worked with us to create an org design that would effectively integrate both groups.  They guided us to select leaders for the key roles, and led us through the implementation.  The new design resulted in reduced management layers, and enabled us to re-deploy engineers into cross-functional project teams for great efficiency and speed."

VP Engineering, industrial products 

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