"10 Principles of Organization Design - These fundamental guidelines, drawn from experience, can help you reshape your organization to fit your business strategy"
THIS IS A WONDERFUL ARTICLE THAT I ACTUALLY THINK THAT MANY OF THESE CONCEPTS APPLY EQUALLY WELL TO THE RESTRUCTURING OF FAMILIES.
"Although every company is different, and there is no set formula for determining the appropriate design for your organization, we have identified 10 guiding principles that apply to every company. These have been developed through years of research and practice at PwC and Strategy&, using changes in organization design to improve performance in more than 400 companies across industries and geographies. These fundamental principles point the way for leaders whose strategies require a different kind of organization than the one they have today.
1. Declare amnesty for the past. Organization design should start with corporate self-reflection: What is your sense of purpose? How will you make a difference for your clients, employees, and investors? What will set you apart from others, now and in the future? What differentiating capabilities will allow you to deliver your value proposition over the next two to five years?
For many business leaders, answering those questions means going beyond your comfort zone. You have to set a bold direction, marshal the organization toward that goal, and prioritize everything you do accordingly. Sustaining a forward-looking view is crucial.
We’ve seen a fair number of organization design initiatives fail to make a difference because senior executives got caught up in discussing the pros and cons of the old organization. Avoid this situation by declaring “amnesty for the past.” Collectively, explicitly decide that you will neither blame nor try to justify the design in place today or any organization designs of the past. It’s time to move on. This type of pronouncement may sound simple, but it’s surprisingly effective for keeping the focus on the new strategy.
2. Design with “DNA.” Organization design can seem unnecessarily complex; the right framework, however, can help you decode and prioritize the necessary elements….
The blocks naturally fall into four complementary pairs, each made up of one tangible (or formal) and one intangible (or informal) element. Decisions are paired with norms (governing how people act), motivators with commitments (governing factors that affect people’s feelings about their work), information with mind-sets (governing how they process knowledge and meaning), and structure with networks (governing how they connect). By using these elements and considering changes needed across each complementary pair, you can create a design that will integrate your whole enterprise, instead of pulling it apart.
You may be tempted to make changes with all eight building blocks simultaneously. But too many interventions at once could interact in unexpected ways, leading to unfortunate side effects. Pick a small number of changes — five at most — that you believe will deliver the greatest initial impact. Even a few changes could involve many variations….
3. Fix the structure last, not first. The company sought to understand the organizational factors that had slowed down its responses in the past. There were problems in the way decisions were made and carried out, and in how information flowed. Therefore, the first changes in the sequence concerned these building blocks: eliminating non-productive meetings (information), clarifying accountabilities in the matrix structure (decisions and norms), and changing how people were rewarded (motivators). By the time the company was ready to adjust the org chart, most of the problem factors had been addressed.
4. Make the most of top talent. Talent is a critical but often overlooked factor when it comes to org design…. You need to design positions to make the most of the strengths of the people who will occupy them….
5. Focus on what you can control…. Taking stock of real-world limitations helps ensure that you can execute and sustain the new organization design…. Constraints on your business — such as regulations, supply shortages, and changes in customer demand — may be out of your control. But don’t get bogged down in trying to change something you can’t change; instead, focus on changing what you can….
6. Promote accountability. Design your organization so that it’s easy for people to be accountable for their part of the work without being micromanaged. Make sure that decision rights are clear and that information flows rapidly and clearly from the executive committee to business units, functions, and departments…. When decision rights and motivators are established, accountability can take hold. Gradually, people get in the habit of following through on commitments without experiencing formal enforcement. Even after it becomes part of the company’s culture, this new accountability must be continually nurtured and promoted. It won’t endure if, for example, new additions to the firm don’t honor commitments or incentives change in a way that undermines the desired behavior.
7. Benchmark sparingly, if at all…. Different value propositions would require different capabilities and translate into different organization designs…. [It is a mistake to compare your own performance to others who hold] different value propositions or capabilities systems than you do.
8. Let the “lines and boxes” fit your company’s purpose…. The right structure for one company will not be the same as the right structure for another, even if they’re in the same industry.
9. Accentuate the informal…. Many companies reassign decision rights, rework the org chart, or set up knowledge-sharing systems — yet don’t see the results they expect…. That’s because they’ve ignored the more informal, intangible building blocks. Norms, commitments, mind-sets, and networks are essential in getting things done. They represent (and influence) the ways people think, feel, communicate, and behave. When these intangibles are not in sync with one another or the more tangible building blocks, the organization falters.
10. Build on your strengths."http://www.strategy-business.com/article/00318