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Realising the impact of organisation design
Ten questions for business leaders
Organisation design is a complex undertaking with no guarantees. Most organisation design programs do not live up to expectations and often create more disruption than business value.
Done well, organisation design can make a significant improvement in performance, because it amplifies the alignment of the organisation to its strategy and business model. It can improve speed to market and customer experience improvement. And it can go a long way toward trimming costs.
Organisation design is a complex undertaking. On 130 organisation design projects analysed, fewer than 20 percent exceeded the original business case values that were used to justify them in the first place. And that’s not all.
- Most organisation design projects proceed to the design phase with very limited analytical work. The analytics that do take place are often based on incomplete or very high-level data sets.
- Most design projects don’t go far enough in addressing real organisational or structural issues.
- In more than 60 percent of cases, these important projects are left up to middle management to design and implement. There’s too little sponsorship, oversight or involvement from senior executives.
- Often, businesses embark on organisation design projects in search of benefits they can’t achieve through organisation design alone—or even at all.
This report presents the latest Deloitte thinking on creating the conditions for highly successful organisational design based business transformation through three distinct phases:
Decide: Is organisation design the right solution for the business?
Design: The right future organisation is not based on structures alone.
Deliver: Realise the planned benefits and value through thorough implementation.