Managing Transitional Risks in Organizational Design PPT

This PPT slide, part of the 21-slide 9 Principles of Organizational Design PowerPoint presentation, focuses on the ninth principle of organizational design, emphasizing the necessity of developing a plan to manage transitional risks. The current practice section highlights a common pitfall where leaders, eager to implement new organizational designs, often neglect to establish a risk management plan. This oversight can lead to complications during the transition phase.

The principle-guided approach outlines key steps for effective risk management. Identifying significant risks early in the process is crucial, as is ongoing monitoring after the design is implemented. The slide stresses the importance of tracking various metrics—operational, financial, and commercial—throughout the transition. Additionally, conducting pulse checks on employee sentiment in critical areas of the organization is essential to gauge the impact of changes.

A case example illustrates these concepts in action. A Consumer Packaged Goods (CPG) company recognized that launching its reorganization of sales and marketing just before the holiday season could be disruptive. As a result, they decided to postpone the reorganization. The impact of this decision was positive, as it allowed for an efficient transition without negatively affecting revenues.

This slide serves as a reminder of the importance of structured risk management during organizational changes. It provides actionable insights for leaders looking to navigate transitions smoothly while maintaining operational stability. The emphasis on early identification of risks and continuous monitoring can help organizations avoid common pitfalls associated with rushed implementations.

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Organizational Design Organizational Change Risk Management Sales