Organisation Design
As organisations embark on IT transformation programmes they need to ensure they consider their current operating position with respect to what they wish to achieve over the future period. Often organisations focus on process design and technology aspects rather than establishing the organisation design foundation and principles.
The first critical step on the journey is to understand the rate of change and level of change that needs to be realised by the new organisation design. Should the change deliver the gold standard operating model or are there trade-offs that can be realised delivering an organisation that is good enough? An organisation that is ‘good enough’ that creates a platform for future growth could be the most appropriate approach to gain market share rather than straining to achieve the ‘golden’ state in a single step.
The trade-off needs to be made in the context of the typical organisation components which could include:
Business context
- Achieving sustainable growth and industry leading margins
- Grow through innovation/diversification/acquisition
- Balance operating costs against level of investment in innovation
Organisation/People
- Customer centric or product centric focus
- Improved control and accountability within the business for outputs
- Alignment of business entities, organisation structure and roles and responsibilities
- Centres of excellence for high value processes or distributed organisation/functions
Processes
- Employees, suppliers and customers are able to collaborate within a process
- Standardise and automate core basic transactions
- Low value process consolidation and outsource or retain in sourced
Information
- Create one version of the trust with the appropriate level of decision support
- Balanced KPI’s defined, monitored and reported
- Information architecture defines what is needed by who, when and how it will be used
- Knowledge management and information sharing leading to active collaboration
Technology
- Processes automated and integrated in their selected ERP, CRM or BI solution as much as possible
- Best of breed applications in critical areas
- Standardise and rationalise platforms, systems and applications
