In an ever-changing business environment, global HR research and advisory firm McLean & Company’s new resource explains that organizations can ensure operational efficiency, adaptability, and maximization of potential for continuous improvement and sustainability through intentional organizational design. The firm also highlights that merely defaulting to restructuring may be a faster solution, but often misses the mark long-term.
As the future of work continues to yield unpredictable outcomes for employers and employees alike, organizations increasingly seek the right approach to business operations that will provide sustainable success. In response to the need for guidance, McLean & Company has released a new resource, Organizational Design Guide, created to support HR and organizational leaders in navigating the organizational design process. The firm explains in the resource that when the process is executed effectively, organizations are better equipped to adapt to market changes and achieve long-term success. The global HR research and advisory firm also cautions that organizational design is not merely about restructuring, but rather involves aligning all aspects of the business, from strategy and workflows to people and culture.
“It can often seem easier to quickly create new organizational structures instead of participating in a complete organizational redesign process,” says Amani Gharib, PhD and director of HR Research & Advisory Services at McLean & Company. “However, while restructuring may seem like a faster solution, the opportunity cost of lost efficiency and lack of clarity will lead to greater long-term challenges for the organization, requiring more time, resources, and finances to address underlying issues.”
In the guide, McLean & Company explains that optimal organizational design elevates business performance, and points to improved workflows and processes, faster and more effective decision-making, increased efficiencies and reduced costs, and boosted employee engagement as direct benefits. The firm cautions that ineffective design can result in inefficient use of time and resources, reduced quality of products and services, decreased customer satisfaction, and lowered employee engagement.
To help HR and organizational leaders take the right approach to organizational design, the firm has divided the guide into four easy-to-follow sections full of insights and actionable tips:
- Organizational Design Foundations. Explore the foundations of organizational design, including change management, strategic alignment, governance, and both guiding and design principles.
- Current-State Assessment. Conduct a current-state review by analyzing the current operating model, structure, and culture to inform strategic decisions.
- Operating Model & Structure. Develop the operating model and design the supporting organizational structure with defined accountabilities and responsibilities.
- Communication & Sustainment. Plan for communication and change sustainment, then prepare to measure the design’s effectiveness.
McLean & Company advises HR and organizational leaders that change management is critical and must be prioritized not only from the outset, but throughout each stage of the organizational design process. This includes thoroughly evaluating the people implications, which are the requirements, effects, or consequences on talent and talent processes as a result of the new organizational structure.
“It’s important to remember that effective organizational design hinges on meticulous planning and execution of communications, particularly when it involves significant employee impacts,” explains Gharib. “Navigating key organizational design components, such as change management and governance, must be done thoughtfully and with careful sequencing of communications to ensure sustainable improvements to the new organizational structures.”
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