Organisational design challenges are some of the most frequent issues presented to us by our clients. When done well, good organisational design can be a key enabler for successful delivery of strategic goals and business plans, but when done badly (or neglected), it can be one of the worst hindrances to strong business performance.
Design principles to consider include:
· Strategic Alignment - Organisational design allows companies to align the structure of the organisation with strategic goals and ensures that the execution of this alignment is seamless.
Having a structure that is aligned and optimised ensures resources are well-utilised which subsequently helps foster growth by maximising productivity.
A strategically aligned organisational design ensures that all elements of the business are clear on their purpose and how they work together to deliver the strategy.
· Customer-Centric Focus - Putting the customer experience at the heart of organisational design helps ensure that all parts of the organisation are customer-centric. This will translate into positive customer experience, enhancing customer satisfaction and again contributing to growth.
· Optimised Efficiency - One of the core goals of organisational design is maximising efficiency. All organisations strive for optimal resource utilisation and aim for efficient processes.
Through careful design, organisations can streamline workflow, eliminate redundant processes, and enhance operational efficiency.
Optimised efficiency not only helps to reduce costs but can also free up valuable resources which can be pointed towards growth-oriented initiatives.
· Employee Engagement - Employees are a vital part of every organisation and their productivity and satisfaction plays an integral role in delivering sustained growth.
Organisational design takes into account the skills, expertise, and preferences of all employees and helps create a positive working environment.
By aligning individuals’ skills and strengths with work outputs, organisations can enhance job satisfaction, leading to increased levels of engagement, productivity, and better staff retention.
· Clear Communication - Having a well-designed organisational design enables clear channels of communication and reporting structures.
This allows for the effective flow of information, helping efficient decision-making processes and creating agility, allowing organisations to respond to evolving market conditions.
Clear communication also provides clarity on roles and responsibilities, creating a sense of purpose which increases motivation and commitment, which in turn helps drive the growth of the organisation.
· Innovation and Adaptability - Innovation and adaptability can be important competitive differentiators. Organisational design can help facilitate this by creating cross-functional teams, ensuring open communication, and providing a safe space to share ideas and innovations.
Optimising technology and considering scalability as the organisation grows will also be important considerations.
Good organisational design can be a significant differentiator for organisations seeking growth and can provide benefits that extend across various facets of the organisation.
In an ever-evolving and competitive market, organisational design creates the foundation for growth and helps create a blueprint for success, allowing organisations to unlock their potential and flourish.
:: Neil Hughes is people and change director at Grant Thornton Ireland
