Organisation design can be tough and messy, especially for those who are new to it.
Organisations are becoming increasingly challenging to design for. The right design can empower people, streamline processes, optimise resources and improve performance. The wrong design can negatively impact employee experience and prevent the organisation from delivering on its customer promise.
The right design can empower people, streamline processes, optimise resources and improve performance
Learning from the experts
To help you take your first steps in design, we sat down with two experienced organisation designers to highlight the seven mistakes you need to avoid.
Andrea Poore, Director at PWC, leads large-scale organisational transformations, focused on defining enterprise-wide operating models, achieving cost reduction and efficiencies while building organisation capabilities.
Fiona McLean leads organisation design at the Department for Work and Pensions (DWP) which has over 96,000 employees.
Here are seven typical errors you should steer clear of:
If you have a six-person leadership team, they will each want six different things
1. Not creating leadership alignment before you begin
Fiona and Andrea emphasise the importance of creating alignment among senior managers.
If this is neglected, it can lead to substantial issues later on.
Andrea points out that if you have a six-person leadership team, they will each want six different things.
Each manager will naturally want what’s best for their respective department, so the designer’s role is crucial here.
They need to facilitate the leaders so they can collectively agree on the design criteria and principles they want to follow.
Without this it will be impossible to please everyone.
Gaining the full support and attention of senior leaders for the proposed changes is vital.
Fiona adds that without this leadership alignment, disagreement or confusion about the roles and responsibilities of different departments or teams may arise resulting in either overlaps or gaps in accountability.
Gaining the full support and attention of senior leaders for the proposed changes is vital
2. Doing it all manually
Technology has advanced to the point where it is now possible to crunch huge tranches of data and yield rich insights with very little effort.
According to Andrea, a substantial portion of the analysis involved in organisation design can now be completed in a third of the time it used to take, while also providing valuable insights about potential cost savings.
For those beginning their initial design project, there are numerous platforms available that can facilitate and streamline this complex process.
It’s important to take a holistic approach that considers all the factors that contribute to employee attitudes and actions
3. Thinking that changing the new structure will change behaviour
Whilst a restructure creates a fresh context, Fiona notes it’s no guarantee that long-term patterns of behaviour will change.
It’s important to take a holistic approach that considers all the factors that contribute to employee attitudes and actions.
For example, if you’re designing to create increased collaboration and teamwork, but your incentives and rewards system are based solely on individual performance then your design may not create the desired effect.
Designing around specific employees can be limiting because people come and go
4. Designing around people, not processes
Designing around specific employees can be limiting because people come and go.
Andrea finds that such an approach can elicit emotive responses when a more objective viewpoint can create a healthier balance between the needs of the organisation and the individual.
Focusing on role-based design allows the organisation to build structures and processes that can adapt to changes in staff and seize opportunities to optimise workflows for maximum efficiency.
It’s essential to consistently re-evaluate your change efforts to see what else can be improved
5. Declaring victory too soon
Fiona suggests that it’s easy to fall into the trap of believing that once your design has been completed the work is done.
However, it’s essential to consistently re-evaluate your change efforts to see what else can be improved.
It’s important to recognise that change can be disruptive, and that some people may find it challenging to adapt to the new ways of doing things.
Continuing to communicate the rationale behind the changes, coupled with providing ongoing support and training, can facilitate a smoother transition and increase the chances of long-term success.
Focusing on role-based design allows the organisation to build structures and processes that can adapt to changes in staff
6. Not being clear on what problem you’re trying to solve
Clarity on what problem you’re trying to solve is critical.
Are you focusing on organisation design or the operating model?
While these two concepts are closely linked, they are not interchangeable.
The goal of organisation design is to create an optimal structure that enables the organisation to function at its best.
It is the process of defining, and then aligning, an organisation’s structure, roles, processes and culture with its overall strategy and goals.
Operating model, on the other hand, refers to the way an organisation delivers value to its stakeholders, including customers, employees, and shareholders.
It defines how the organisation will operate to deliver its products or services to customers and achieve its strategic goals.
Andrea emphasises that it’s important to have a clear understanding of what is within the scope of the work that you are undertaking.
The goal of organisation design is to create an optimal structure that enables the organisation to function at its best
7. Not understanding how your colleagues experience the organisation
Your design will greatly influence your employees’ experience.
Fiona emphasises that it’s essential to understand how your people experience your organisation so that you appreciate what you are changing before you begin.
Gaining insight into the handoffs between teams, the sources of employee frustration, what they really value, where the difficult relationships are and who has conflicting objectives will help you make more informed design decisions.
It’s essential to understand how your people experience your organisation so that you appreciate what you are changing before you begin
Designing a pathway to success
In conclusion, the design of an organisation plays a crucial role in determining its success.
By steering clear of these seven mistakes, you can minimise the risks associated with your organisation design and perhaps even enjoy the process.
Andrea believes that while numerous theories and training courses can provide support, there’s no substitute for hands-on experience.
To get started try these three steps:
- Initiate open dialogue with senior leaders to start to build alignment
- Use your networks to help you fully understand the organisation system you are working in
- Clarify the scope of your design exercise
By taking these actions, you’ll be better prepared to embark on your first organisational design project, avoid the common pitfalls, and set your organisation on the path to success.
If you enjoyed this, read: Five ways to win at organisational development and design
