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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?
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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
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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
Every ‘layer’ is Changingfaster than we realise
Consumer
Economy
Product-Markets
Organisations& People
Technology BusinessProcesses
Regulation