CLIENT NEED: THE ORGANIZATION NO LONGER FITS THE STRATEGY OR MARKET SHIFTS.
Organization Design
Organization Design
We help leadership teams translate strategy into the structure, roles, decision rights, interfaces and capabilities required for execution.
We help leadership teams translate strategy into the structure, roles, decision rights, interfaces and capabilities required for execution.
WHEN CLIENTS CALL US
The organization was built for a different strategy, scale or market.
The organization was built for a different strategy, scale or market.
Unclear decision rights
Unclear decision rights
Decisions move slowly or are revisited because authority and accountability are unclear.
Decisions move slowly or are revisited because authority and accountability are unclear.
Critical interfaces
Critical interfaces
Work depends on collaboration across units, but the interfaces, forums and incentives do not support it.
Work depends on collaboration across units, but the interfaces, forums and incentives do not support it.
A structure the business has outgrown
A structure the business has outgrown
Growth has outpaced the structure, leaving roles, spans and layers misaligned with the work.
Growth has outpaced the structure, leaving roles, spans and layers misaligned with the work.
Capability gaps
Capability gaps
The strategy depends on capabilities and leadership roles the organization has not yet built.
The strategy depends on capabilities and leadership roles the organization has not yet built.
Organization design aligns structure, roles, decisions and capabilities.
Organization design aligns structure, roles, decisions and capabilities.
We begin with the strategy and the critical work it requires. Leaders define design principles and evaluate structural options against the business outcomes the organization must deliver.
We begin with the strategy and the critical work it requires. Leaders define design principles and evaluate structural options against the business outcomes the organization must deliver.
The design specifies decision rights, accountabilities, critical interfaces, leadership roles, capabilities and the management practices that make the structure work.
The design specifies decision rights, accountabilities, critical interfaces, leadership roles, capabilities and the management practices that make the structure work.
STRATEGY CLARITY
Begin with strategy clarity and the business gap.
Begin with strategy clarity and the business gap.
We start with the result the organization needs to achieve and the result it is getting. This may be a performance gap against an existing commitment or an opportunity the business is not yet equipped to capture.
We start with the result the organization needs to achieve and the result it is getting. This may be a performance gap against an existing commitment or an opportunity the business is not yet equipped to capture.
The leadership team tests whether the strategy is sufficiently clear before moving into execution. It then identifies the work, capabilities and behaviors the strategy requires. This gives the change a business purpose and provides a basis for judging progress.
The leadership team tests whether the strategy is sufficiently clear before moving into execution. It then identifies the work, capabilities and behaviors the strategy requires. This gives the change a business purpose and provides a basis for judging progress.
ORGANIZATIONAL DIAGNOSIS
Diagnose the organization before prescribing the intervention.
Diagnose the organization before prescribing the intervention.
Persistent difficulties are often described as resistance, weak accountability or poor communication. These labels can conceal the organizational conditions influencing how people act.
Persistent difficulties are often described as resistance, weak accountability or poor communication. These labels can conceal the organizational conditions influencing how people act.
Using the Congruence Model, leaders examine the relationships among the critical work, formal organization, people and culture. They investigate how authority, incentives, capabilities, resource commitments and learned expectations may be sustaining the current pattern. Leaders also consider how their own decisions contribute to it.
Using the Congruence Model, leaders examine the relationships among the critical work, formal organization, people and culture. They investigate how authority, incentives, capabilities, resource commitments and learned expectations may be sustaining the current pattern. Leaders also consider how their own decisions contribute to it.
The diagnosis helps the team distinguish symptoms from root causes and determine which changes need to reinforce one another.
The diagnosis helps the team distinguish symptoms from root causes and determine which changes need to reinforce one another.
DESIGN PRINCIPLES AND OPTIONS
Leaders evaluate design options against agreed criteria.
Leaders evaluate design options against agreed criteria.
We translate the strategy and diagnosis into a small set of design principles. These criteria allow the leadership team to compare structural options against the work the organization must perform.
We translate the strategy and diagnosis into a small set of design principles. These criteria allow the leadership team to compare structural options against the work the organization must perform.
Strategic requirements
Strategic requirements
Define the critical work, capabilities and outcomes the strategy requires.
Define the critical work, capabilities and outcomes the strategy requires.
Design principles
Design principles
Agree the criteria each design option must satisfy.
Agree the criteria each design option must satisfy.
Structural options
Structural options
Develop viable options and test their trade-offs.
Develop viable options and test their trade-offs.
Choice
Choice
Select the best fit and name its risks and conditions for success.
Select the best fit and name its risks and conditions for success.
The result is a reasoned design choice that leaders can explain, own and implement.
The result is a reasoned design choice that leaders can explain, own and implement.
DETAIL DESIGN AND CRITICAL INTERFACES
Turn the structural choice into a working organization.
Turn the structural choice into a working organization.
We define roles, accountabilities and decision rights at the level needed for people to act.
We define roles, accountabilities and decision rights at the level needed for people to act.
We design the critical interfaces, forums and management practices that connect business units and functions.
We design the critical interfaces, forums and management practices that connect business units and functions.
Fast-start teams resolve priority design questions and test how the new organization will work before the full transition.
Fast-start teams resolve priority design questions and test how the new organization will work before the full transition.
CAPABILITIES AND LEADERS
Equip the organization to make the design work.
Equip the organization to make the design work.
A structure works when leaders have the authority, capabilities and shared expectations to operate it.
A structure works when leaders have the authority, capabilities and shared expectations to operate it.
We identify the leadership roles, talent moves, capabilities and management practices needed to support the design.
We identify the leadership roles, talent moves, capabilities and management practices needed to support the design.
Decision rights
Decision rights
Where consequential decisions sit and who is accountable.
Where consequential decisions sit and who is accountable.
Critical interfaces
Critical interfaces
How units coordinate work, resources and trade-offs.
How units coordinate work, resources and trade-offs.
Leadership roles
Leadership roles
The accountabilities and expectations of key leaders.
The accountabilities and expectations of key leaders.
Capabilities
Capabilities
The skills and capacity the strategy requires.
The skills and capacity the strategy requires.
Management system
Management system
The forums, measures and rhythms that sustain the design.
The forums, measures and rhythms that sustain the design.
IMPLEMENTATION
Move from design to execution through fast starts.
Move from design to execution through fast starts.
Implementation sequences the decisions, appointments, capability building and operating changes required to launch the design.
Implementation sequences the decisions, appointments, capability building and operating changes required to launch the design.
Fast-start teams focus on the highest-risk interfaces and decisions so leaders can learn, adjust and build momentum in the first months.
Fast-start teams focus on the highest-risk interfaces and decisions so leaders can learn, adjust and build momentum in the first months.
EVIDENCE IN PRACTICE
Analog Devices
Analog Devices
Change Logic worked with Analog Devices’ senior leaders on the organizational implications of its growth strategy. A Strategic Leadership Forum involving the company’s top 100 leaders informed changes to the business-unit structure, capability development and the design of Analog Garage, its innovation unit.
Change Logic worked with Analog Devices’ senior leaders on the organizational implications of its growth strategy. A Strategic Leadership Forum involving the company’s top 100 leaders informed changes to the business-unit structure, capability development and the design of Analog Garage, its innovation unit.