People generally associate organization design with how roles are structured around organizational hierarchy represented through Organizational charts. However, organization design is much more complex than that because organizations are structured around common goals and missions and to rally everyone around and create systems and processes that can harmoniously work together to achieve those common goals is a highly complex activity.
What is Organization Design?
To put it simply, Organization Design is associated with the creation of roles, processes, and structures to ensure the execution and management of an organization’s strategic mission. What this means is, an Organizational design is something that is tailored to each organization, and there is no formula or a ‘straitjacket’, one size fits all approach that you could implement as a formula. It is more about finding the best fit between the organizational intent, the cultural affinity, and the decisions that the organizations want to take.
Benefits of Organization Design
Organization Design that is tailored to match the specific needs of the organization and its people, taking into account its environmental and cultural context can offer a plethora of benefits. Some of these are listed here:
- Higher Operational efficiency
2. Marked difference in the speed and quality of decisions
3. Better team performance
4. Improved quality of its products and service offerings
5. Improved safety and work conditions
6. Greater Customer engagement and experience
7. Improved revenue & profits
8. Motivated workforce
9. Greater resilience in dealing with disruptions and adapting to change