Enhancing Growth through Strategic Organizational Design PPT
This PPT slide, part of the 30-slide Fit for Growth PowerPoint presentation, emphasizes the importance of Organizational Design (OD) in facilitating growth within an organization. It outlines 2 primary strategies for enhancing growth through effective OD.
The first strategy focuses on cost reduction and resource optimization. By creating more suitable organizational structures and adjusting the span of control, businesses can lower management overheads while allowing for better resource sharing across various functions. This may involve modifying the organizational structure to decrease hierarchical layers, which in turn frees up essential funds. Additionally, the slide suggests that rationalizing pay scales can help align remuneration with job complexity, further supporting cost efficiency. Outsourcing non-critical functions is also mentioned as a viable method for sustaining cost reductions.
The second strategy centers on empowering managers to make decisions akin to business owners. This involves establishing clear financial and operational goals, along with well-defined decision rights. Managers are encouraged to take ownership of their business units, correlating their incentives with results to ensure accountability. The slide highlights the significance of aligning assigned goals with the company’s broader objectives, enabling managers to respond swiftly to market opportunities. By decentralizing decision-making, organizations can enhance agility and responsiveness, allowing for a more dynamic approach to growth.
Overall, the slide presents a compelling case for rethinking organizational structures and empowering leadership as essential components for driving growth and efficiency. It suggests that a well-designed OD framework not only reduces costs, but also positions the organization to seize opportunities effectively.
This slide is part of the Fit for Growth PowerPoint presentation.
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Growth Strategy Organizational Design Cost Reduction Assessment Cost Reduction Organizational Structure Leadership
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