Organizational Design: A Holistic Roadmap Connecting your Employees to your Profitability
Updated: May 31, 2019
Why Organizational Design
Organizational design is a holistic approach toward organizational improvement and touches all aspects of the company. For an organization to be both profitable and healthy we must identify positive and negative gaps in the structure, processes, workflow, talent, and systems within the framework of the corporate mission, vision, and values (MVV) to achieve connected culture and increased profitability.
MVV: The Start
We begin by examining the mission, vision, and values – the guiding principles of an organization. Through a comprehensive workshop, we uncover the MVV as well as articulate and communicate them in such a way that the employees, clients, and colleagues know who they are, what they do, and why they do it. Many organizations call this a purpose statement, or a Hedgehog Concept. If your employees know your purpose, vision, and values, they feel more connected to the organization.
Once we identify the MVV, we look for ways to increase corporate efficiencies by conducting a comprehensive review and analysis of the organizational strengths, weaknesses, structure, processes, workflow, systems, and talent. We include key decision-makers and, depending on the size of the organization, focus groups, in this process to ensure a thorough understanding and company-wide support. As Jim Collin’s has said, get the right people on the bus first, then play to their strengths to and provide them with structure, in positions they will thrive in professional growth and esteem, and drive business objectives.
Once we determine the gaps that keep us from achieving the objectives we develop a set of processes and procedures to help us realign the organization with the business goals. It is important that we articulate these change clearly, transparently, and as simply as possible. Not only is it important to develop a comprehensive plan and to include key decision-makers, it is also imperative that we reinforce employee accountability with an effective performance management and compensation structure. Communication during this process is key to success, so employees know what you’re doing, why you’re doing it and the anticipated benefit.
The Finish Line
Once we analyze the organization, determine inefficiencies, include the right people, and develop our strategy, we focus on implementation. Through organizational design, we can expect to realize expense reductions, increased growth, and increased employee engagement and enhanced organizational health, which will ultimately lead to an increase in the profitability and productivity of the company. Our holistic approach in this process identifies both positive and negative gaps in the organization as well as creates a culture of engaged employees that are incentivized towards a collaborative style that drives our business forward. The employees are the engine that drives us forward and organizational design could not be effective without them. Measuring the effectiveness of the new improved organization is key to understanding the value of this exercise. You can understand the ROI, as well as pivot where necessary as your organization continues to grow.