The starting point for a successful reorganization is the decisions that create value, not the boxes and lines of the organization chart. Our approach helps companies structure their operations around the key sources of value in the business, remove unnecessary complexity and set up an effective operating model that allows the company to realize its strategic objectives.A company’s structure determines its ability to execute strategy and adapt rapidly to change. In today’s economic environment, business organizations have to cope with several crucial challenges:
- Translating strategic objectives into organizational requirements
- Align accountabilities with organization’s configuration
- Extending productivity while maintaining cost base
- Reducing organizational complexity while maintaining control
- Sustaining growth
- Managing organizational changes
- Reaching the right characteristics to be a high-performance company
The essence of organization; people working together collaboratively is the basis of competitive advantage. Thus, we address organizational performance and employee engagement simultaneously. We help clients actively resolve complexity, avoiding both bureaucracy and misaligned action, so that any organizational change is successfully implemented. Our approach focuses on a decision perspective that helps ensure the organizational changes will have the desired effect: better performance. Chief executives often believe that changing the structure of their organizations will produce better performance. But the key is to launch a decision-driven reorganization. Companies that have done so have learned the importance of the following six lessons:
- Identify your organization's key decisions. These will include major strategic decisions made in the boardroom and some of the everyday operating decisions made on the frontline.
- Determine where in the organization those decisions need to be made. Some decisions are easy to place–major capital investments, for instance, usually belong with the corporate center–but some require an assessment of trade-offs.
- Structure the company around its sources of value. If different customer segments require different kinds of decisions, for example, you may want to structure the company around those segments.
- Figure out the level of authority your decision makers need, and give it to them regardless of their organizational status.
- Adjust other parts of your organizational system as necessary. A change in structure may require changes in decision roles and incentives.
- Equip your managers to make decisions quickly and well. Smart companies ensure that people have the skills required to make and execute good decisions.