What is Organization Design?
It’s the alignment of all parts of a business* to its strategic intent to deliver its competitive advantage. It’s the deliberate process of configuring and fitting of the operating model resulting in a business capable of winning in its marketplace. At OTM, we call this “fit for purpose.”
*NOTE: All parts of a business or operating model equates to: product and services offerings, customer experience, the end-2-end value creation activities, structures and roles, management roles and mechanisms, technologies, rewards & compensation, people processes and norms, ways of working and behaviors.
What are the benefits of Organization Design?
Most businesses are unfit for purpose. This unfitness is brought on by a high degree of fragmentation, being poorly organized, burdened by wasted and often duplicate efforts with the customer as an after-thought. OTM’s organization design solution aligns and integrates an entire business, its operating model, to its core purpose and strategic intent, comprehensively and holistically. The OTM solution releases capacity through optimizing resources and effort, significantly reducing waste, duplication of effort and excessive coordination, truly engaging the hearts and minds of your people and putting the customer at the center of a business. It gets things right first time and injects a disciplined, governed continuous improvement process thus avoiding a constant cycle of restructuring and cosmetic change. It mitigates and corrects the damage caused by sub-optimization or functional thinking applied to the resolution of issues and challenges one at a time.
How to approach Organization Design?
Pay Now or Pay Later? We advocate involving and engaging people early in the process for faster stabilization and high performance, it is true people own what they create. The whole process can take anything between 30 days and 12 months depending on the scale of redesign and the resource commitments.
Keep an eye out for more Organisation Design Unplugged coming soon.
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