Puzzled about what organization design is? Then take a look at ON THE MARK’s in-depth infographic below detailing the process of organization design from the lens of a jigsaw puzzle.
More than just organization charts and box charts, organization design means ensuring your operating model proves “fit for purpose” as well as aligned to your strategy. Another way to think of the term is as system change.
What Is Organization Design?
Organization design is a complex business solution involving the complete re-design, implementation and governance of an operating model that fits with an intended business direction and strategy.
In other words, it’s the aligning of all parts of a business (its operating model) to deliver its strategic intent and competitive advantage.
We know through experience as well as science that how something is done is as important as what is done. That’s why we are keenly focused on ensuring the solution we deliver is highly sustainable and not consultant-dependent. It serves as the basis for our off-the-charts obsession with real collaboration based on our closely-held value statement that “people support what they help to create.”
Organization design boils down to the deliberate process of configuring the informal and formal elements of a business. This includes value stream, structure, technologies, management mechanisms & systems, rewards, and people processes, to create a business capable of achieving its business strategy.
How To Approach Organization Design
Pay Now or Pay Later? We advocate involving and engaging people early in the process for faster stabilization as well as high performance. The process can take anything between 30 days and 12 months, depending on the scale of redesign and resource commitments.
Who should lead the re-design? The question of whether to build or buy a solution is a critical decision in achieving a successful end product. Unfortunately, companies that depend on their internal HR functions to develop their own in-house solution often face teams lacking the appropriate experience to do so.
Organization design is a complex business solution and requires people with a skill set not easily learned. This skill development cannot be achieved through a single workshop, but requires knowledge gain, application, practice, feedback and support over time. Only with ample experience and development are internal change agents prepared to lead the organization on the path to the most effective, impactful course of action with the most ROI.
To find out more about organization design, contact ON THE MARK — as we offer unparalleled experience in organization design.
ON THE MARK’s experience and passion for collaborative business transformation that’s supported by pragmatism, systems thinking, and a belief in people is unparalleled. OTM has been in business for 29 years and is a global leader in organization design consulting.