Organisational Structure
Many organisations are reviewing their Organisational Structure due to current global economic conditions encouraging them to re-evaluate the way in which their businesses are structured, as business remains slack and margins tight, the timing might seem right to embrace change but a major change in Organisational Structure is not something that should be taken on without due consideration, as ramifications from a poorly implemented “re-org” or “down size” can be cataclysmic. Major changes to Organisational Structure should not be embarked upon without a fully justified business case that explores all options especially that of ‘do nothing’. If the business case demonstrates a clear need for change Organisational Structure and can quantify acceptable costs & risks then a formal Programme should be initiated, identifying roles and responsibilities as well as key Business Stakeholders and what level of participation is required from each.
As well as having an unequivocal ‘Compelling Reason for Change’ the key to a successful change in Organisational Structure is having a clear, well communicated plan of what needs to change, detailing what tangible benefits can be realised as a result. Transform-Associates recommend a blueprint of the ‘current and ‘target’ Operating Model (Business Architecture) be produced in order to assess the impact of change across the organisation as well as aiding communication.
The context should always be considered e.g. how many successful changes in Organisational Structure have been made in the past, do any Stakeholders believe they have the authority to veto the proposed change etc.
Regardless of the business driver for change in Organisational Structure any redesign should be considered from the ‘outside in’ i.e. from a customer’s perspective, e.g. how will the change in Organisational Structure affect their services, the process that deliver them, the businesses ability to respond to their needs, etc. In this regard assurances should be made to Customers as losing business due to poor communication may undermine the viability of Business Case for the reorganisation.
Each Stakeholder should have a clear understanding of what is going to change why and when, what they are required to participate individually and how this is going to affect their roles on a day to day basis. Without this level of detail successful business transition cannot ensue.