Organisation design is an integral part of business strategy which should be considered during the process of business planning and building out the business model. An organisation design can focus on one or more aspects of an organisation, such as its structure, processes and people. The scope of an organisation’s design depends on the industry it is operating in and its current position within that industry. It is a proactive means for assessing your organisation and getting intentional about making changes that align people, process, structure, and strategy for better results.

It is a proactive means for assessing your organisation and getting intentional about making changes that align people, process, structure, and strategy for better results.

Businesses have often turned to Org Design for reasons of poor strategy execution. Strategy has been documented as a key challenge for organisations. Org design may be necessary when a business needs to redesign its businesses processes. It’s applicable whenever organisations need to be agile in order to adapt dynamically.  Process, strategy and business models can be designed to help your organisation fulfil its purpose and achieve its vision through the pursuit of its goals.

Other flags include;  seeing a lot of conflict in the organisation, discussing the same issues in meetings over and over again, when your team is running ahead of you, or another reason may be if your technology has become obsolete in your market.  If it becomes difficult to hold people accountable for their actions or whenever your employees are unable to visualise the impact that their work has on the organisation’s success, an operating model redesign could be the answer. 

In summary when there is a lot of discrepancy between what is desired and what is delivered by the organisation, organisation design can be used to align the company’s strategy with its structure.

Publicly-owned firms often require reorganisation when they are acquired by another company. It is an essential process that helps the business to adjust for growth and expansion because organisations must align their people, structure, and processes with strategy in order to succeed.

Organisations must align their people, structure, and processes with strategy in order to succeed.

The business model is a key part of the organisational redesign process as it defines how resources get transformed into products and services. In addition, business model design has a direct impact on many organisational processes that are needed to support the implementation of the new business model. It impacts decision-making as well as employee roles within different parts of the enterprise.

Org design takes place when you restructure a business’ organisation structure or function. The word “process” is frequently used in org design because the job is to improve the way a business functions by improving the process that it uses. Business process redesign is one example of the way a business can change its processes, and therefore the way they carry out its functions. In other words, you can make fundamental changes to the way a business works in order to create processes that give a higher yield on ROI. Process strategy, organisation strategy and other areas are all integral parts of org design as well as related areas such as business model and strategy design.

Organisations must align their people, structure, and processes with strategy in order to succeed.

Conclusion

It is important to remember that a business strategy design can be as simple as creating clarity on how the organisation is going to operate, or as complex as defining the overall direction of the organisation over many years. Org Design is not an event or process but rather a continual activity that should be undertaken by every organisation.

Get in touch today to discuss your operating model and learn how we can help create a better process framework that delivers on efficiency and gives a higher return on investment. info@allagi.ie