Design Your Organization Structure and Work Processes for High Performance
Key Points of the Organization Structure and Work Processes page
Changing organization design is a long-term process
Needs commitment from the leadership team to provide the necessary resources (e.g. time, money and people) for successful implementation
Design choices impact on business performance
Use a model so you make deliberate design choices
Energizing leadership backed up with an effective organization structure and work processes will enable your organization to operate at its optimum.
We discuss energizing leadership elsewhere in the site, here we focus on the organization structure and work processes (in other words organization design) that lead to high performance.
Hiring talented people is not enough to ensure organizational success. The best and brightest employees will not be able to do their best work in a poorly designed workplace.
Poor organization design is one of the leading causes of low employee morale and productivity. There are four critical signs that your organization structure and work processes need improvement:
High employee turnover (particularly of your most talented people)
Low productivity
Increased customer complaints
Decreased profitability
Organizations are perfectly designed to get the results they get. In other words if you want different results from your business you will need to scrutinize and somehow change your organization design structure and processes.
Organization design is not new. You may have heard it referred to as (amongst others):
open system design,
socio-technical systems design,
high performance work systems design
total quality management,
participative management and
re-engineering
The name you apply to organization design is not that important. What is important is that the change is approached systematically and you have long-term commitment from the leadership team to follow through, even when it gets tough. Whether you choose to use an organization design model or not, you are constantly making design choices that impact on the performance of your business.
Benefits of adopting effective organization structure and work processes:
Improved Employee Satisfaction: Effective organization design creates a culture of commitment. The people fully understand their accountabilities, authorities, and goals of the business and see themselves as having a significant impact on the success or the organisation.
Improved Customer Satisfaction: Employees are better able to deliver high quality services and products that meet customer expectations
Improved Financial Performance: When an organization's employees and goals are properly aligned, there is greater productivity and less waste which leads to significant returns for the business
Improved Competitive Advantage: Effective organization design creates a well-aligned, flexible and productive business that is able to meet the demands of a shifting market place.
An organization specifically desgined with high performance in mind, creates the organization structure and work process which enable each person to contribute their full potential through tapping into their talents, skills, ideas, energy and creativity.
Typical elements of a High Performance Organization Design:
Focused on a common vision
Business focused
Integrated design of people and equipment
Flat organizational structure
Multi-skilled team members
Principle based rather than rule based
Committed to training and learning
Should you attempt an Organization Re-Design?
It depends. Organization re-design can be a timely and costly process (in fact it can take up to 2 years to re-design a business and 15 years of implementation!). The readiness of your business to begin a re-design process is determined by two factors:
The urgency for change to take place
The readiness of the organization to accept widespread change
Ideally you should only begin a re-design process after you have acceptance and ownership of the need to change by everyone who is to be impacted by it and most critically you have strong and real commitment from your most senior leadership.
You have probably heard someone comment about the "latest flavour of the month". This cynicism is bred when new and seemingly unrelated change programmes are put in place by a leadership team who either doesn't fully understand or communicate the reasons behind their shift in priorities and change strategies.
A fast and effective employee survey is one way of establishing both the need for change and the commitment to change.
If you find you have low readiness for change you may be able to build readiness for change by sharing the following information with your people:
Business
Changing customer requirements
Competition
General Economy
Organisational Performance
Bench-mark data
Local business unit performance (compared to other sister sites)
As you analyse these areas you may well identify gaps between current performance and required performance. This will help you to identify the parts of the organization that need to be changed and the magnitude of the change required. It may be that many of your internal processes and systems are spot on, capable of successfully meeting the needs of the marketplace. There may be other processes and systems that require radical re-thinking and redesign.
Click here to review a process you could use for Organization Re-design
The processes and systems that are on track should be constantly monitored and improved (continuous improvement). But if radical change is required this is where a systematic organization re-design process is called for.
Pitfalls that may cause failure
Watch out for these pitfalls as you re-design your organization structure and work processes:
Loss of support from senior management
Leadership (particularly front-line) holding on/reverting to traditional command and control style leadership
Leadership not leading by example or exhibiting the behaviours they require from their people
Not understanding that team and people evolve over time and not giving the people the time to grow into the new way of operating
Forgetting the vision you have for the future
The redesign is faulty - the elements are not in alignment
Team members are changed or rotated before the culture becomes institutionalised
This is a very short overview of what is a dynamic and intricate process - whether you are designing for the start-up of a new business or whether you are refitting the design of an organization that has been running for several decades.
There's no magical answer to implementation, but avoiding the pitfalls listed above and engaging an expert change consultant to help you with the process will substantially increase your chances of success.
Re-design of your organization structure and work processes is an exciting time. Enjoy your journey as you deliberately design and create a workplace that will be successful for the long term. You will feel exceptionally proud to have been a part of the process. Guaranteed!
Would you like more information on Organization Design? Then use our swicki search engine. Swicki is new kind of search engine that allows anyone to create deep, focused searches on topics they care about. Unlike other search engines it uses the wisdom of like-minded people to improve search results. The buzz cloud of seed words that you see below constantly updates to show you what are hot search terms in our community
ADD TO YOUR SOCIAL BOOKMARKS:BlinkDel.icio.usDigg FurlGoogleSimpySpurlTechnoratiY! MyWeb
Subscribe to
HARK!
In 10 fast minutes each
month you'll access tips, ideas and resources that will speed up your
success and create more fulfillment in your life!