The majority of organization design initiatives start out with the best of intentions, but few live up to expectations. What they do provide is disruption, as people and positions shuffle for very little gain. These kinds of restructuring efforts can undermine faith in the wisdom of an organization's leadership, which actually erodes value and team coherence. When properly conceived and executed, organization design can significantly accelerate performance in complex business environments. Directly aligning the organization to its strategy and business model enhances both people performance and business results. Deloitte has developed a new approach to organization design to create this highly valuable alignment. This new methodology guides the redesign process from the decision stage through design and implementation, always focused on enabling the organization to do what it was meant to do.
Businesses today operate in an environment that is far more complex and competitive than at any time in history. Therefore, today’s global operating environment is too unpredictable to rely on organizational structures devised over a century ago. Traditional structures are often characterized by too many management layers, bureaucracy, inflexible functions and silo’s. However, as the drumbeat of business disruption grows, organizations can and need to become more adaptable by unlocking the power of networked teams. The Deloitte Organizational Design team has increasingly been asked to help clients to develop these networked, focused teams, with resources, air-cover and real decision authority, and to design the overall organizational structure that fits the teams. Some of our related client questions are:
- Translate strategic goals into operating models that enable organizations to operationalize their strategy
- Identify, assess and redefine the organizational capabilities needed to deliver and sustain competitive advantage
- Decide whether a Nimble or other organization design is the right solution for the business
- Develop the detailed design of organization structures (what team structure fits with our strategy and capabilities, do we need any management layers etc.), roles, responsibilities, ways of working (governance and coordination mechanisms, KPI’s) and job or role descriptions (depending on what best fits the organization)
- Transition organizations from one design to another, supporting implementation and the realization of value and benefits from organization redesign.
- Legal workforce transition; generate insight in legal consequences of transition for employees and organization, as well as guiding the process with work councils.
As Deloitte’s Organizational Design team, we:
- Understand both current and future design: We understand the current structure of an organization as well as have experience with designing and implementing more flexible ways of working. As such we are able to identify which transition model of the organizational design works best for a specific organization in order to realize the end state.
- Develop tailor made designs: By thoroughly examining the organization, we know which aspects are most relevant and key to success. Based on the results, we design a specific solution that best fits the organization, which either might be a flexible design or a more traditional one.
- Provide an integrated (change & legal) solution: Many large companies that embark on a major change effort struggle to accomplish their original goals. Our team is able to design the solutions as well as develop the necessary change management plan to make it work, including the legal workforce transition. Moreover, we can easily align with our talent, leadership and culture colleagues in order to look at all different aspects of the necessary change.
- Have innovative ways of working: Often new ways or organizing and working are implemented with old-fashioned methods. We use innovative and creative methods that make employees think for themselves and take responsibility for the change. An example is our method of incubation; a phased approach that incubates the new (flexible) design on the “edges” of the organization most threatened by disruption, while protecting the successful “core”.
- Make use of (inter)national best practices: We have best practices in different industries which we can use to gain insight in specific success factors and barriers. Not only for our Dutch market, but also globally.
- Have access to a network of sparring partners: We can use our international and national network to find sparring partners for our clients in order to share their experiences and see our designs work in practice.
Building a new (flexible) organization may seem difficult, but our experience and approach help our clients to realize their desired organization. At the end of the process, our clients:
- Are able to realize their strategic ambitions. The structures fits with the strategy and capabilities of the organization and therefore drives the realization of strategy.
- Make organization design decisions based on systems thinking and avoid seeing their company as an organization chart.
- Are able to react more rapidly to sudden changes in their environment.
- Innovation is realized in a faster, more efficient ánd effective way; it better suits the ambitions and capabilities of the organization.
- Are client focused; better customer experience and higher customer satisfaction as organizations are organized from a customer journey perspective.
- Higher employee satisfaction and engagement as they are empowered to be autonomous to improve decision-making.
- Are able to identify opportunities to break functional silos, while organizing around outcomes and flattening your structure as much as possible
- Use data and tools to increase visibility of the networks of complex organization formal and informal interactions, which helps them to realize their ambitions.
Our clients operate in all kind of industries and whether they need to be more traditionally or flexible organized, the components of a flexible organization exist in nearly every business. We support our clients to identify these components and realize their ambitions.