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How to manage organization re-design processes

Nicolay Worren
Nicolay Worren

Managing organization re-design processes requires three key requirements: creating alignment with mission and strategy, creating coherency across organizational dimensions, and creating trust through a fair and transparent process. Effective re-design requires a systematic approach with phases for planning, design, and implementation. It is important to balance top-down direction with extensive involvement from stakeholders and collect valid data to develop alternative solutions.

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Managing organization re-design processes Three key requirements Nicolay Worren www.organizationdesign.net
Organization (re)design is an element in - or prerequisite for - many types of organizational change Starting point Strategic reorientation Merger or acquisition Change /improvement program 2 息 Worren Consulting 2012
Re-design processes are demanding Challenges Uncertainty Different stakeholders Direct impact on individuals careers 3 息 Worren Consulting 2012
A systematic approach is needed We need to reorganize PLAN DESIGN IMPLEMENT Phases, milestones How to collect data How to develop alternative solutions How to make decisions Who to involve 4 息 Worren Consulting 2012
What an effective design process needs to provide Potentially negative Requirements: outcome: Misalignment Create alignment A (with mission and strategy) Internally Create coherency C inconsistent models Lack of trust Create trust T 5 息 Worren Consulting 2012
Investing time and effort in early phase pays off later New organization announced Planning Design Implementation Time to value Planning Design Implementation Time to value 6 息 Worren Consulting 2012
Creating alignment with A mission and strategy C T Try to articulate organizational implications Required capabilities My preferred approach: Define functional requirements Break down the mission into sub missions (mandates) for every major unit What outcomes does the organization need to deliver, for whom? Define design criteria how to evaluate alternatives against each other 7 息 Worren Consulting 2012
A Creating coherency C T Central coordination Different organizational dimensions Managing Director Managing Director Managing Product Engineering Product Director Marketing Sales & Innovation Development Management Product Engineering Product Marketing Sales & Innovation Development Management Product Engineering Product Marketing Sales & Innovation Operating model Development Management Mandates/missions and different levels Governance model Resource model 8 息 Worren Consulting 2012
A Creating trust C T Gathering data Selling the change Developing solutions Planning Design Implementation Compliance Fair Trust process Valid information 9 息 Worren Consulting 2012
Balancing top down direction with extensive involvement PLAN DESIGN IMPLEMENT Set the Document Design Develop Transition agenda org criteria model Select Detail plan Implement Evaluate Leader Mngtm 123 456 789 team Others Project team 10 息 Worren Consulting 2012
More on principles, frameworks, tools www.amazon.co.uk www.organizationdesign.net Subscribe here! 11 息 Worren Consulting 2012

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How to manage organization re-design processes

  • 1. Managing organization re-design processes Three key requirements Nicolay Worren www.organizationdesign.net
  • 2. Organization (re)design is an element in - or prerequisite for - many types of organizational change Starting point Strategic reorientation Merger or acquisition Change /improvement program 2 息 Worren Consulting 2012
  • 3. Re-design processes are demanding Challenges Uncertainty Different stakeholders Direct impact on individuals careers 3 息 Worren Consulting 2012
  • 4. A systematic approach is needed We need to reorganize PLAN DESIGN IMPLEMENT Phases, milestones How to collect data How to develop alternative solutions How to make decisions Who to involve 4 息 Worren Consulting 2012
  • 5. What an effective design process needs to provide Potentially negative Requirements: outcome: Misalignment Create alignment A (with mission and strategy) Internally Create coherency C inconsistent models Lack of trust Create trust T 5 息 Worren Consulting 2012
  • 6. Investing time and effort in early phase pays off later New organization announced Planning Design Implementation Time to value Planning Design Implementation Time to value 6 息 Worren Consulting 2012
  • 7. Creating alignment with A mission and strategy C T Try to articulate organizational implications Required capabilities My preferred approach: Define functional requirements Break down the mission into sub missions (mandates) for every major unit What outcomes does the organization need to deliver, for whom? Define design criteria how to evaluate alternatives against each other 7 息 Worren Consulting 2012
  • 8. A Creating coherency C T Central coordination Different organizational dimensions Managing Director Managing Director Managing Product Engineering Product Director Marketing Sales & Innovation Development Management Product Engineering Product Marketing Sales & Innovation Development Management Product Engineering Product Marketing Sales & Innovation Operating model Development Management Mandates/missions and different levels Governance model Resource model 8 息 Worren Consulting 2012
  • 9. A Creating trust C T Gathering data Selling the change Developing solutions Planning Design Implementation Compliance Fair Trust process Valid information 9 息 Worren Consulting 2012
  • 10. Balancing top down direction with extensive involvement PLAN DESIGN IMPLEMENT Set the Document Design Develop Transition agenda org criteria model Select Detail plan Implement Evaluate Leader Mngtm 123 456 789 team Others Project team 10 息 Worren Consulting 2012
  • 11. More on principles, frameworks, tools www.amazon.co.uk www.organizationdesign.net Subscribe here! 11 息 Worren Consulting 2012