In today’s rapidly changing environment, technology advancements are redefining the boundaries within which organizations are operating, and as a result it has become an imperative for organizations to rethink their business operating model to ensure their long-term survival. Implementing a new strategy, business model or to address areas in need of improvement often drives an organization to assess their organizational structure to see if it’s fit-for-purpose or may require restructuring.
YAS follows a simple, structured approach to determining if you have the right organizational design or if changes are required to achieve your strategic objectives.
This structured approach is used to:
- How are we performing against our strategic objectives?
- How may the internal environment impact the design?
- How may the external environment impact the design?
- What concerns does senior management have with the current organization design?
- Is there a significant misalignment between strategy and functions?
- Is their sufficient justification to restructure part or all of the organization?
- What principles and assessment criteria should the design met?
- What organizational constraints exist that need to be taken into account during the design process?
- What is the proposed reporting structure and accountabilities for the organization design?
- Will the changes require significant process changes (more than just shifting boxes on a chart and changing people’s titles)?
- What is the impact on people, teams and departments?
- What is the potential impact on formal and informal (social) networks between people?
- Is their sufficient justification to restructure part or all of the organization?
- Are the changes too risky to implement at the operational level?
- Is this the right time to make changes?
- Has management approved the changes?
- Is the organization ready for the changes?
- Do we have the capability and capacity to implement changes ourselves?
- What are the key performance indicators and targets that will be measured against during Strategy implementation?
- How do we cascade these measures down to business units?
- What should we do if we go off course or external factors push for a change in direction?
- How do we implement performance measurement and monitoring as part of business-as-usual activity?
Reviewing your organization design, and determining any need to restructure, is necessary when there is:
- A new strategy developed
- A change in leadership
- More demand from consumers for products and services
- Changes in the supply chain impacting your organization
- New competitors in the marketplace
- Financial and process audits suggest the need for changes to structure
Our leadership team has worked in senior positions that involved the need to review, design and implement initiatives to restructure entire government departments to divisions within organizations. Previously working at The Executive Council of Dubai, our Leadership Team developed the guidebook, processes, and approvals process for new or changes to government department organizational structures. The Leadership Team was also responsible for developing the guidebook to merging or abolishing government departments or divisions.