Organizations are going through the accelerating speed of strategic changes brought about by continuous technological disruptions, keeping organizations in a sort of permanent state of flux. Consequently, every directional shift the organization makes alters the Organization’s design. Today, Organizations must have nimble structures that are flexible, helping them to scale and adapt quickly to changing business dynamics in the marketplace. The speed of change dictates whether the organization follows a big bang approach or takes incremental steps to change and redesign. Typically, Organizations prefer a big-bang approach than bring incremental changes that would have been more appropriate. Incremental changes can take a long time but are more stable in implementing changes with causing minimum disruptions.
What is Organizational Redesign?
Organizational Redesign is to do with streamlining people, processes, & structures to support the rollout of a key strategy with an aim to bring about significant improvements to business outcomes and team performances which are directly connected to the organizations’ strategic mission. The organizational redesign is a key factor in enhancing employee experience & engagement, customer experience, improve the speed of delivery, and better cost management.
Key factors that are crucial to implementing an Organizational Redesign:
Transitioning to nimble and agile operations that can respond quickly to organizational strategy and direction, businesses must look at four key aspects covering the organization’s structural framework, people skills, processes redesign, and reward mechanisms, to reach the above objective, deliver superior value to its stakeholder, and continue to reinvent for growth.
Structural Framework: Do away with complex structures that promote working in silos, instead implement simpler structures that allow easy flow of information and faster work delivery
People Skills: Equipping people with specific skills that enable them to work with technology and automation
Process redesign: Redefine processes and workflows around interconnected activities, strip away process steps that are redundant and create delays, allowing for a simpler and qualitative approach that ramps up efficiency and reduces overall cost.
Rewards Mechanisms: Implementing a robust reward mechanism that measures and tracks key metrics and outcomes vis-a-vis the organizational strategy outlined, and incentivizes performance through a system that people feel motivated and connected to and are committed to the goal.