Organizational Design ‘Requires Strategic Planning’


Company leaders must approach organizational design with comprehensive strategic planning processes in place, according to Deloitte.

The firm said organizational design can provide significant improvement to performances by increasing speed to market, trimming costs and encouraging better customer experiences.

David Brown, Deloitte Australia’s human capital leader, said today’s businesses face productivity challenges, but this often results in them simply reducing headcounts.

“Taking a more strategic approach to organizational design can yield better long-term results,” he explained.

“It is all about designing your organization for sustained performance by focusing on core questions, which will assist with understanding why your organization is undertaking a design project in the first instance.”

Mr Brown said creating and implementing a new design can be a positive driver in complex corporate environments, but simply committing to change is not enough to ensure the success of these schemes.

He argued that there must be precise actions taken at three important strategic phases: decide, design and deliver.

“The outcome of organization design hinges on the leader who has the energy to drive necessary decisions and the profile and personal characteristics to build commitment in the organization,” Mr Brown continued.

A Deloitte report suggested business leaders ask themselves three questions when approaching organization design:

·      Is your business operating model correct for your strategy?
·      How do you know an organization restructure is the right move?
·      How can you ensure a greater chance of success?

If you are considering restructuring your current processes, investing in strategy software could help you to align your objectives more appropriately.

StrategyBlocks is a highly visual strategic management platform that helps to communicate your corporate goals effectively across the whole company.

This ensures everyone is on the same page with strategic planning and progress can be tracked and corrected where necessary.