WHAT ORGANIZATIONAL DESIGN IS
Organizational design is all about finding the most efficient way of running the company. Two different levels must be taken into consideration:
- Organizational structure: This is where the structure of the company is defined in order to create a framework for efficiency and future growth. Which divisions make sense? What levels are there in the company? What kind of hierarchy is suitable?
- Process organization: We also refer to this level as a cooperation model. We determine how roles are allocated in the company and how cooperation is regulated. This includes decision-making processes and determining which meeting formats make the most sense.
In good organizational design, these levels are mutually supportive. Together, they ensure that the corporate objectives are both structured (organizational structure) and internalized in the daily work (process organization).
HOW ORGANIZATIONAL DESIGN WORKS
There are generally many ways of setting up structure and cooperation within a company. The following steps present an approximate guide towards finding the best option:
- The definition of vision, strategy and targets is the starting point. The vision describes the ideal state of the company in the future. This forms the basis for formulating a strategy. The strategy is operationalized by means of targets which mark the implementation of the strategy and thus the realization of the vision.
- A current state analysis clarifies where the organisation stands today: What works well and what does not? What are the main challenges? What does the organizational culture look like? What framework conditions are to be considered?
- Iterative organizational design: We develop a suitable organizational design together with the client by means of an iterative process based on the defined objectives and starting with the current state analysis. This can only be done by adopting a holistic perspective and continuously integrating different perspectives and feedback as appropriate.
- Iterative transformation process: The transformation process must correspond with the corporate culture and be viable within the framework conditions. A coordinated approach is a decisive factor in achieving the desired result.
THE SIGNIFICANCE OF A NEW ORGANIZATIONAL DESIGN
The scope of a new organizational design can only be determined on an individual basis. The initial situation already has an influence on how much change is required: It is not always necessary or advisable to restructure the whole company. Often only a part of the organization is involved, such as a few departments that must be newly set up, merged or restructured.
It is generally advisable to review and adapt the work, e.g. through the use of agile methods and instruments, modern tools such as OKRs (Objectives and Key Results) and other dynamic cooperation methods. Experience shows that it is important to support employees and managers by means of training and qualifications to help them cope with new demands.
STEP-BY-STEP CHANGE AND DEVELOPMENT
BA step-by-step and iterative approach is an important factor in transitioning to the new target image. This ensures that the organization is not overchallenged and that solutions are found that really take account of how things are. It is important to realize that the ideal design cannot be planned on a purely theoretical basis. It is vital to incorporate different perspectives on a regular basis: What is going well? Where is the most support currently needed?
We enable our clients to (re-)design their organization as efficiently and expediently as possible by deploying our comprehensive knowledge and experience as consultants as well as know-how from various disciplines.