Recent McKinsey research surveyed a large set of global executives and suggests that many companies, these days, are in a nearly permanent state of organizational flux. A rise in efforts in Organizational Design is attributed to the accelerating pace of structural change generated by market disruption such as the COVID-19 pandemic for example.
However, few organizational design attempts are successful. The opportunity of a successful outcome is greatly increased through following the rigorous Organization Design process.
The purpose of this Organization Design Approach framework and associated tools is to provide a standard methodology and governance framework for Organization Design projects across a Company. The Organization Design Approach and supporting Organization Design Toolkit can be used as a guide for HR Business Partners and Line Managers on how to complete an Organization Design project. It will help to drive a consistent approach to Organization Design.
The document is a comprehensive framework for organizational design and incorporates tools to assess elements such as current organizational setup and performance, and evaluation of strategic alternatives for organizational design.
The tools are useful during the design and delivery phases of engagements when in need of the following:
1. Organization Design Model
2. Organization Design Methodology
3. Organization Design Governance Framework
4. Organization Design Core Design Principles
The Organization Design Toolkit comprises of embedded tools in the PPT such as:
1. Organization Design Gap Analysis Guide (20 page PPT)
2. Full-Time Equivalent Analysis Tool (Excel)
3. RACI Tool (6 page PPT & RACI Excel template)
4. Organizational Structure Guide (18 page PPT)
5. Design Evaluation (9 page PPT)
6. Day In the Life Of Tool (7 page PPT)
7. Role Profile Guideline (5 page Word document)
The Organization Design Toolkit includes a detailed guide on developing tailored design principles to meet specific project requirements. It also provides a comprehensive framework for evaluating and selecting organizational structures, ensuring alignment with strategic business goals.
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Source: Best Practices in Bain PowerPoint, McKinsey PowerPoint, Bain Presentations, Bain Frameworks PowerPoint Slides: Organization Design Toolkit PowerPoint (PPTX) Presentation Slide Deck, Corporate Finance 101
This PPT slide outlines a structured approach to Organization Design (OD) projects, emphasizing a six-phase methodology that must be tailored to each specific project. The phases begin with defining the case for change, followed by conducting a gap analysis, and then progressing through design and implementation stages. Each phase is critical, as it builds upon the previous one to ensure a comprehensive and effective design process.
Responsibilities for these phases are divided among 3 key groups: The Business, HR Business Partners, and the Talent and Organizational Effectiveness team. The Business is tasked with leading and owning the OD projects, providing necessary content, and managing change and communication efforts. This highlights the importance of leadership and ownership in driving successful outcomes.
HR Business Partners play a supportive yet crucial role, ensuring adherence to the standard Organization Design approach. They provide expert guidance on HR implications and coordinate various HR functions, such as performance management and talent development. This collaboration ensures that the organizational design aligns with broader HR strategies and practices.
The Talent and Organizational Effectiveness team is responsible for owning the standard Organization Design approach and toolkit. They provide expert advice and guidance, ensuring that the design process is informed by best practices and tailored to the organization's needs.
This slide serves as a foundational overview for potential customers, illustrating the structured methodology and collaborative responsibilities essential for successful organization design initiatives. Understanding these elements can help stakeholders assess the framework's applicability to their own organizational challenges.
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