The process focuses on improving both the technical and people side of the business. 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:.
What is Organizational Design?
A well-designed organization ensures that the form of the organization matches its purpose or strategy, meets the challenges posed by business realities and significantly increases the likelihood that the collective efforts of people will be successful.
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. Although adaptable to the size, complexity and needs of any organization, the design process consists of the following steps.
As senior leaders, you come together to discuss current business results, organizational health, environmental demands, etc. At times, senior teams may 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 and how well they work together as a team.
Using our Transformation Model , we facilitate a comprehensive assessment of your organization to understand how it functions, its strengths and weaknesses, and alignment to your core ideology and business strategy. At some point the design process morphs into transition planning as critical implementation dates are set and specific, concrete action plans created to implement the new design.
And a key part of this step includes communicating progress to other members of the organization. A communications plan is developed that educates people in what is happening. Now the task is to make the design live.
People are organized into natural work groups which receive training in the new design, team skills and start-up team building.
New work roles are learned and new relationships within and without the unit are established. Equipment and facilities are rearranged. Reward systems, performance systems, information sharing, decision-making and management systems are changed and adjusted. Some of this can be accomplished quickly. Some may require more detail and be implemented over a longer period of time.
A few years back we worked with a company within the aluminum industry. The company recognized they were becoming bureaucratic and unresponsive to their customers needs.
Following a period of assessment of the strengths and weaknesses of the existing organization, they went through a process of organizational redesign in which they organized their front office functions to become more collaborative and customer focused.
The diagrams below illustrate, at a high level, this change. Pre-design Workflow. Post-design Workflow. The first chart illustrates the tendency of most people within organizations to think in terms of silos and organize people according to the similarity of their functions.
The second chart illustrates how the company redefined structural boundaries to become much more cross-functional on the front end of their business.
They combined people from a number from a number of departments into teams that took full responsibility for managing customer orders.
Of course, this chart greatly simplifies all of the design decisions which included improvements in workflow and system support, and the role of leaders and other support functions in the new organization.
But this gives you an idea of the kinds of integration and improved collaboration that can result from organizational design. The good news is that it can be used in most any type and size of business.
The length of time required to complete a redesign varies depending on the nature, size and resources of the organization. Large and complex redesign projects can be completed within several days. Smaller organizations require much less time and fewer resources. We are experts in strategy and organizational design.
Call or email us for a no-obligation conversation to answer a question regarding your company or to explore bringing our services in-house.
Team based organizational design pdf
I have gone through your article on how to design and redesign organization. It is really interesting to add my knowledge on how to design orgaizations. Kindly please i have my article which we have gone through the re-design process in our department however, we would like your advice if we have followed the correct direction and how we can integrate your model or can it be anyway to share my article with you.
I see your methodology as a comprehensive model in which everything has a logical sequence and inclusive approach for people of the organization. I am planning to use it in a re-design of a distribution company. Do you have a detailed list of to-do activities under the seven step model? Or perhaps a questionnaire guide to cover all phases.?
Very interesting read. If yes, what would be your guidance around this? Process of Org. Otherwise, the design will be questioned.
Estaba buscando esa informacion hace ciclo, te lo agradezco, estoy de contrato con tu punto de vista y alimento igual. Despues de buscar mucho por Internet encontre lo que buscaba. Hi Allen, Thanks for the interesting information. Hi, Really this is very informative, i have not understood the example which shown in figure 2, please if possible i want some more focus on this. Figure two shows how different functional departments were combined into a single department on the front end of the core business process.
Sales, engineering and production control are now co-located, share metrics and report to the same person to improve communication and work flow between them. Of course, there are a number of these units, organized by product line. I found this article really informative as it focuses on keeping holistic picture in mind while org designing. It would be great if you could talk more about how can one assess current state of org using HR data.
Thank you for give me broad understanding of organizational design as a new hr learner Appreciate vital information Regards. The article is really educative, it has given me a clearer understanding on the concept or Organizational Design. Maybe what would be your best conclusion on why studying organization is imperative?
The Center for Organizational Design. What is Organizational Design? By Dr.
Roger K. Allen 19 Comments. Charter the design process As senior leaders, you come together to discuss current business results, organizational health, environmental demands, etc.
Team Based Organizations
Will you organize primarily around functions, processes, customer-types, technologies, geographies, etc.? Documenting and standardizing procedures.
Organizing people around core processes. Identifying headcount necessary to do core work. Defining tasks, functions, and skills.
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. Defining the management structure that provides strategic, coordinating and operational support.
Improving coordinating and development systems hiring, training, compensation, information-sharing, goal-setting, etc. Implement the design Now the task is to make the design live.
Example: A few years back we worked with a company within the aluminum industry. Pre-design Workflow Post-design Workflow The first chart illustrates the tendency of most people within organizations to think in terms of silos and organize people according to the similarity of their functions. Share this information:. To contact the Center, click here. Comments Janeth J.
Marwa says:. February 8, at am.
Roger Allen says:. Roger Allen. Abel says:. March 10, at pm. Dear Mr. Allen I see your methodology as a comprehensive model in which everything has a logical sequence and inclusive approach for people of the organization.
October 27, at am. I am interested in building my business with a better infrastructure. Kaustubh Kulkarni says:. November 2, at pm.
Hi Allen, Very interesting read. Thank you so much for your help in advance. Warm regards, Kaustubh. Abdullah Alhosani says:.