© Copyright- Cerebrus Consultants

Organisation Transformation: Relooking at Organisation Structures

Cerebrus Consultants

© Copyright- Cerebrus Consultants

Transforming Organisations

TRANSFORMATION IS A TWO WAY PROCESS

   

 

ORGANISATIONTRANSFORMATION

Business Model Strategy Systems Infrastructure

INDIVIDUALTRANSFORMATION

Mindset Attitude Way of WorkingWay of Relating toOthers

ENDGOAL

The Challenge Ahead….

Sustained Business Growth

Market &CustomerStrategy

BusinessStrategy

RapidTechnologyDeployment

People

THE KEY...

The Challenge Ahead….

Sustained Business Growth

Processes

Capability

Culture

Quality

The Mindset also needs to transform

THE CREATIVE TRANSFORMATION

CertaintyStructureDefined JobPredictabilityGuaranteesEntitlement

UncertaintyNetworksRoleAmbiguityRisksEligibility

The Empowered Organisation

THE CULTURAL TRANSFORMATION

Responsible for ExecutionResponsible for ReportingLook for InstructionWait for GuidanceWait for ResourcesPerformance criteria: Compliance with Instruction Lack of Openness Command control culture

Responsible for Setting StandardsResponsible for Review & ControlProvide Instruction, seek adviceSeek counsel : internal & externalPlan for resources & implement plan

Performance against goals setTransparencyParticipative Culture

The Past Current

HR’s role as a Change Facilitator

Understanding Business needs and communicating it widely

Enabling Change through innovative changes in HR policies and processes – ensuring HR is not a “block”

Enabling the chnages in Organisation and culture through induction of the “right” person and right “fit of people”

Coaching and counseling at various levels

What HR Can do

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The Challenges of SME/MSME

Access to quality talent may be a constraint

Retention of key talent a serious concern

Assimilating senior level talent and handling their aspirations

Level of delegation and empowerment in this context

The Leader has to play many roles – both as a Manager & a Leader & Chief Mentor

Do SME/MSMEs need to approach transformation differently?

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HR has an even more key role

Need to contribute both as a Strategic Advisor to promoter and a Coach to the promoter

Also needs to play a more key role in communication and coaching in the organisation

Putting basic systems and processes with a deep understanding of what they need to achieve

Understanding “costs” in a strategic manner

Do SME/MSMEs need to approach transformation differently?

10

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The Journey of Transformation

My Role

Managerial Styles

Competitive Environment

Culture

Structure

Organization Strategy

Organisation Structures

Ensure that the Structure enables focus on the Strategic priorities of the organisation

Efficiency in Operations and daily working

Adequate controls and checks and balances

Speed in response – to customers, to market , in making decisions

Enabling multiple perspectives and insights to be voiced and debated at appropriate levels

Clarity in Accountability to each individual

What Should Structure seek to achieve

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From only operational focus to Strategic focus & clear focus on Accountability

Considerations in Structure Design

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ORGANISATION DESIGN

BUSINESS STRATEGY

ORG LIFE CYCLE &CURR REALITIES

ENVIRONMENT CONTEXT

Reflecting the Business Focus in the Structure to drive thinking and action aligned to strategic focus

Functional/geographical Structures to Customer centric/Product Structures Bringing Customer centricity within

Eg Financial Services – geography to Customer eg Mass market, HNI etc or Product wise Auto loans, Housing loans

Bringing “Whole Business’ perspective –

SBU structure vs functional structure

Designing Organisation Structures

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What Structure is Appropriate also depends on

Size – do the volumes justify the segmentation?

Control Vs Speed --Requirement of business for Speed of action by frontline vs controls to ensure consistency

Cost of structure and affordability

Range and diversity of product/service offerings

Designing Organisation Structures

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Balance between various parameters is essential for the

structure to be effective

Move away from Command & control structures to more “flexible” structures

Multiple/matrix reporting structures

Network type organisations

Managing complex reporting structures needs coaching

Also need to guard against the possibility of diffused accountability

Trends in Organisation Structures

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Focus on Enhancing efficiencies

“Process” rather than Function approach

Move to COE/shared services approach

Hub and spoke model

Trends in Organisation Structures

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Also important to bear in mind that Structures designed around Individuals do not bring about Sustainability for the organisation

Make the organisation limited by Individual strengths and weaknesses

Increasingly does not allow the organisation flexibility

Designing Organisation Structures

19

Transformation is often about a change in the expectation from the role rather than a change in ‘structure” or reporting relationships

Eg role of production Supervisors – from mere Man managers to use of technology to manage processes

Competencies changed to strong process orientation, understanding and leveraging of automation in addition

Changing Role Expectations

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Changes in thoughts on Span of control of Managers

Impact of technology

Need to have time to “coach and mentor” not merely direct staff

Type and roles to be supervised would dictate span

Span of Control

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Meeting Employee aspirations for growth

Structures often have to address this issue

Number of levels in an organisation

Broad banding vs a tall grade structure

Delayering is often a major cost initiative

Creating opportunities to groom leaders and build succession pipelines through roles in the structure

Structures & Employee Aspirations

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Importance of having a more participative and inclusive style of leadership and working

Expectation for far greater transparency and openness

Organisation processes like regular meetings that enable team work and understanding are a must

Important processes for grooming managers and leaders

Work Styles and processes

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Organisation Transformation requires many actions

Structure is a step to formalise the direction

The real change comes about when the Mindset and the way of working and processes change

Work Styles and processes

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THANK YOU

What do you see?

Every ‘layer’ is Changingfaster than we realise

Consumer

Economy

Product-Markets

Organisations& People

Technology BusinessProcesses

Regulation