The Often Over/Under Estimated Work of Organizational Design
When organizations become frustrated with business performance, it’s amazing how frequently the solution is, “We need to reorganize the company.” There is an inherent assumption that combining functions, moving departments and people around and shedding a few staff members will fix the problem. Immediate, decisive action? Yes. High probability of a great performance result? No.
What’s wrong with this picture? The positive effects of reorganizing are overestimated. First, take a look at what organizational structures do: they outline a formal arrangement for tasks, people and resources and they bring order, clarity around reporting relationships and titles and delineate control. As a standalone, an organizational structure has nothing to do with leadership effectiveness, decision making quality, healthy work cultures, organizational alignment and values or trust and ethics, to name a few root causes of business issues. Addressing organizational structure combined with addressing some of these factors may improve the situation.
When you find yourself with the pencil out, sketching organizational boxes, it’s time to ask some challenging questions. What critical strategies must be tackled in the future? Where should critical decisions be made within the organization? What needs a matrix? What key business processes should be supported by the structure? The skill needed for organizational design is greatly underestimated and frequently goes unattended. To add to the pressure, leaders often feel they have to do the work unaided because of the potential impact of new organizational designs on current leaders.
Outside help can fill that void, pose the tough questions, broaden strategic thinking and help you avoid over and under-estimating this important leadership task.
The Bailey Group’s Leadership work supports three Circles of Mastery: Self, Managerial and Organizational Mastery, including organizational design support. Call us for a no-obligation discussion on where we can help on your journey to “mastery,” 763-545-5997.
763-545-5997
Thinking Outside the Box is One Thing, But What’s in the Box Counts Too…..and Who Draws the Box, Moves the Box, Connects the Box…
The Often Over/Under Estimated Work of Organizational Design
When organizations become frustrated with business performance, it’s amazing how frequently the solution is, “We need to reorganize the company.” There is an inherent assumption that combining functions, moving departments and people around and shedding a few staff members will fix the problem. Immediate, decisive action? Yes. High probability of a great performance result? No.
What’s wrong with this picture? The positive effects of reorganizing are overestimated. First, take a look at what organizational structures do: they outline a formal arrangement for tasks, people and resources and they bring order, clarity around reporting relationships and titles and delineate control. As a standalone, an organizational structure has nothing to do with leadership effectiveness, decision making quality, healthy work cultures, organizational alignment and values or trust and ethics, to name a few root causes of business issues. Addressing organizational structure combined with addressing some of these factors may improve the situation.
When you find yourself with the pencil out, sketching organizational boxes, it’s time to ask some challenging questions. What critical strategies must be tackled in the future? Where should critical decisions be made within the organization? What needs a matrix? What key business processes should be supported by the structure? The skill needed for organizational design is greatly underestimated and frequently goes unattended. To add to the pressure, leaders often feel they have to do the work unaided because of the potential impact of new organizational designs on current leaders.
Outside help can fill that void, pose the tough questions, broaden strategic thinking and help you avoid over and under-estimating this important leadership task.
The Bailey Group’s Leadership work supports three Circles of Mastery: Self, Managerial and Organizational Mastery, including organizational design support. Call us for a no-obligation discussion on where we can help on your journey to “mastery,” 763-545-5997.