Organization Design for Today's NeedsWatch the video
Strong organization design can help organizations become more nimble and better able to deal with the complexities of today’s marketplace.
Organizational design ultimately affects how a company executes strategy and goes to market, how it engages its employees, and how it responds to change. Organizations should be designed to answer crucial questions such as:
Smart organization design goes beyond structure to look at other organizational enablers in a systematic way and make choices around important elements. Structure should help drive employee focus on strategic imperatives. Roles and responsibilities should be used to define mission-critical accountabilities, KPIs, and decision rights to facilitate execution. Individual capabilities should be reviewed to ensure the right talent is in the right roles. And other organizational enablers such as performance and talent management should be aligned with required behaviors.
The purpose of smart organization design is to create an organizational context that encourages or shapes the optimal behaviors that will enhance company performance.
When it comes to reorganizing, companies have little room for error.
Research shows that nearly 80% of companies have reorganized in recent years, but more than half of those companies failed to reach their objectives.
The good news is that there are critical success factors that successful companies use when reorganizing: