Organizational Design (OD), also called Organizational Re-design, refers to the management actions of creating new roles, processes, and structures to ensure that the organization's goals can be realized. The scale of Organizational Design efforts can vary greatly—from designing the Corporate Organizational Architecture (e.g. decentralized vs. centralized model) to designing business units to designing individual roles.
Research from global consulting firm McKinsey showed that many organizations today are in a nearly permanent state of organizational flux. Within the past 2 years, almost 60% of the companies interviewed in the study experienced a redesign within the past 2 years—and an additional 25% 3 or more years ago.
This increase in Organizational Design efforts is due to the accelerating pace of strategic change driven by the disruption of industries, from local regulatory changes to global pandemics to emerging, revolutionary technologies.
As a result, companies alter the organization every time it switches direction to deliver the hope for results. Frustratingly, only less than a quarter of the Organizational Design efforts are actually successful. Companies can and should do better—much better.
To increase the odds of a successful Organizational Redesign, organizations should follow the 9 Principles of Organizational Design. These principles are discussed in depth in this framework PowerPoint presentation. For each of the Organizational Design principles, this PPT presentation breaks down the following:
• The current practice
• A principle-guided approach to OD
• Case example
• Impact of following the OD principle
By incorporating these principles, we can achieve an effective and successful Organizational Design process. These Organizational Design principles also allow us to take a methodical approach, instead of relying on intuitive decision making. Corporate Organizational Design provides organizations a rare opportunity to identify the stable organizational backbone and set up those elements ripe for dynamic change.
This Organizational Design PPT deck also includes slide templates illustrating the 9 Principles of Organizational Design for you to use in your own business presentations.
This presentation provides a structured approach to organizational design, ensuring a higher success rate. Executives applying more than six of the nine principles are more likely to achieve desired outcomes.
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Source: Best Practices in Organizational Design PowerPoint Slides: 9 Principles of Organizational Design PowerPoint (PPT) Presentation Slide Deck, LearnPPT Consulting
This PPT slide focuses on the importance of establishing Key Performance Indicators (KPIs) in the context of Organizational Design. It highlights a common pitfall where companies implement new organizational structures without integrating relevant performance metrics. This oversight can lead to a lack of clarity in measuring success and progress.
The left section outlines current practices, indicating that many organizations fail to set up performance metrics alongside their new designs. This can hinder the ability to assess whether the organizational changes are effective or aligned with strategic goals.
The central part of the slide presents a principle-guided approach, emphasizing that KPIs should be simple and clearly defined. It states that KPIs are quantifiable measures that help evaluate success in meeting organizational objectives. The focus is on how these indicators can provide insights into both short-term and long-term performance, ensuring that organizations can track their contributions effectively.
A case example illustrates this principle in action. A high-tech manufacturer is cited as having established a "war room" to display leading indicators such as orders received and customer complaints. This practical application demonstrates how KPIs can be utilized to monitor operational performance in real-time.
The impact section reinforces the value of KPIs, stating that organizations can better gauge the immediate effects of changes and identify potential disruptions early. This proactive approach can lead to more informed decision-making and resource allocation, ultimately enhancing overall organizational effectiveness. The slide serves as a compelling argument for integrating KPIs into any organizational design initiative.
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Organizational Design Consulting Frameworks Growth Strategy Customer Experience Digital Transformation Current State Assessment Gap Analysis Organizational Behavior Restructuring Core Competencies Porter's Five Forces Strategic Planning Strategic Analysis Innovation Management Ideation Organizational Structure Process Mapping Business Transformation Dashboard Design Vision Statement Maturity Model McKinsey 7-S
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