People & Organization

Organizational Design

Organizational design is a holistic effort to completely recreate the structures within your company and the protocols by which they interact internally within each unit and externally with each other. Organizational design consultants use your company’s market strategy as a guideline for the framework of the reorganization, and then produce a tailor-made solution given the unique characteristics of your talent pool.

It seems obvious and intuitive that how a company is organised will be one of the main drivers of its success. However, most companies labour under a legacy organization that evolved over time with little or no explicit top-down effort to ensure efficiency.

An organizational design consultant will start by designing your company’s superstructure in line with its overall market strategy. They will then develop the separate departments or teams that will enact this market strategy. Finally, they will design in detail the decision rights and key processes between separate units, as well as the structure and operating model for each individual unit.

Let a Consultport consultant steer your company toward unleashing the enormous potential benefits of organizational design.

  • Strategic Organizational Alignment:  Any organizational design will begin with a broad plan for the new structure of your company based on your key market strategies. Organizational design is about creating a finely-tuned and highly-specific machine for optimising performance within the relevant market segments. Only by understanding the exact organizational needs of your company can the appropriate structure be designed and implemented by a consultant.
  • Operating Model:  Once the strategic needs of your company and problem areas in your current organization system are identified, a consultant can proceed by developing your company’s new operating model in detail. The consultant will determine the different teams or departments in your new organizational design and provide a clear workflow model to show how they will operate together.
  • Organizational Wiring:  On the basis of a clear operating model, a consultant can proceed to outline the ‘wiring’ that will act as the interconnections and decision nodes between separate teams or departments. Most of the inefficiencies in companies arise in the spaces between its different parts, so a comprehensive design for how decisions are made and conflicts are resolved is essential to the optimal performance of your new organizational design.
  • Departmental Design:  Optimal organizational performance also requires that each team or department has its own internal design to ensure that it can operate at maximum capacity. Each department requires a given amount of company resources to perform its duty and a clear internal structure for managing workflow and solving problems.
  • Design Evaluation:  Organizational design relies on the continuing evaluation of the new company structure to measure performance and make any necessary adjustments given the realities of operating in the relevant market segments. A consultant will use a variety of quantitative and qualitative techniques to evaluate the performance of your company’s new design, including industry standard key performance indicators (KPI).
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