What is Organizational Design?

Organizational design is a step-by-step methodology which identifies dysfunctional aspects of work flow, procedures, structures and systems, realigns them to fit current business realities/goals and then develops plans to implement the new changes. The process focuses on improving both the technical and people side of the business.

For most companies, the design process leads to a more effective organization design, significantly improved results (profitability, customer service, internal operations), and employees who are empowered and committed to the business. The hallmark of the design process is a comprehensive and holistic approach to organizational improvement that touches all aspects of organizational life, so you can achieve: [Read more...]

Traditional to High Performance Organization

Trasnformation

The model that has dominated most modern businesses has been based on a set of principles and practices formally defined by Frederick Taylor in 1903 and known as “scientific management.” The thinking of Taylor and other of his contemporaries (most notably Max Weber) conceived of an organization as a collection of parts that need to be standardized and centrally controlled. The assumptions of this model are implicit in the way most organizations are designed and, until recently, have dominated the thinking of people within organizations. Some of the major features of this theory are summarized below. [Read more...]

The Design Process

The first challenge of the design process is to create a streamlined and effective organization that is aligned with the strategy and desired results of the organization. The second challenge is to get buy-in from the entire organization and implement the new design so that it dramatically and positively changes the way the business operates. Many organizations fail to adapt and adjust their internal infrastructure to the rapidly changing business demands around them because their business processes, structures, and systems act as barriers to efficiency and common-sense decision making. These internal barriers can trap capable people who eventually become cynical and disheartened by their inability to change or influence obvious gaps, inconsistencies, or burdensome constraints within the organization.

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Your Company’s Stimulus Plan

Infusions of cash and capital will come as consumer/investor confidence recovers, but what measures will you take to revitalize morale and an environment of trust within your company? The economy’s damage to your bottom line seems obvious enough. What about the damage to employees’ relationships with their leaders and coworkers?

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Recession’s Lessons: The Upside of Downturns

Companies that learn from economic crises will emerge stronger and better-positioned as industry leaders.

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Picking Up the Pieces: Emerge as a Redesigned Organization

When world economies rebound from this recessionary beating, will your company be positioned to set full-sail into the upturn’s prosperous winds? On world, national, and enterprise levels, financial medics have repeatedly defibrillated the sources of lifeblood for economic health. As consumers and investors express progressive confidence in these measures and contraction turns to expansion, we’ll all take stock to see which companies made the cut.

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Performance Requirements Planning

The purpose of this article is to continue the theme of leadership development. The premise is that leaders (managers and supervisors) need more than training to be effective. It is imperative that the top leaders of an organization create an infrastructure to support and elicit desired leadership behaviors. One way to do this is through performance requirements planning.

Performance requirements planning begins by providing a clear definition of expected outcomes for a given position and continues by identifying those behaviors (best practices) and/or competencies that will lead to those outcomes. It defines the cross bar for individual performance and serves to:

  • Measure individual (leadership) performance
  • Provide individual performance feedback
  • Develop personal improvement and progression plans
  • Create and deliver management training/development programs and coaching

At a high level, here are some steps for making this happen:

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Managing the Business From a Master Plan

Although corporations within the U.S. spend approximately $300 billion per year on training, permanent change will occur only when an organization’s infrastructure elicits, reinforces, and even demands desired leadership behaviors. Research shows that only about 10-20% of the knowledge gained from training actually transfers to the job. The challenge and opportunity is to translate knowledge and skills into practices that actually improve organizational performance.

This article is part of a series about how to build good leadership practices into the infrastructure of your organization.  In my last two newsletters, I’ve discussed the following guidelines for instilling good leadership in your organization:

  1. Focus all your leaders on a shared definition (standard) or paradigm of good leadership behavior
  2. Set the example at the top
  3. Create a forum for feedback between leaders and their employees

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Overcoming Bureaucracy

Helping Business Reach Their Full potential

Consider these facts:

  • A Corning mold machine shop realized 100% improvements in quality and delivery while reducing costs from 15% above to 15% below the competition.
  • Rocky Mountain Labs reduced turnaround time from 28 to 14 days, reduced internal handoffs by 500%, thereby improving productivity by 50% and profits by 25%.
  • Tektronix Portables Division reduced inventory from $40 million to $15 million and reduced cycle time from 12 weeks to four weeks.
  • Shenandoah Life Insurance Company reduced the employee-to-supervisor ratio from 7:1 to 37:1, yet service improved and complaints and errors declined.
  • American Transtech decreased head count by 56 percent, increased sales volume by 46 percent, increased customer satisfaction and had an average of 158 percent improvement in shareowner services.

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Contrasting Traditional & High Performance Organizations

High Performance

In last month’s newsletter I introduced the differences between traditional and high performance organizations. I want to continue that theme today.

I define a high performance company as "an organization that achieves outstanding results by making each person a contributing partner in the business." I want to point out that the goal of high performance is "outstanding results," as defined by a variety of performance measures. Employees as contributing partners are a means to this end and not the end in and of itself. However my experience, as well as research, show that a critical factor in creating and sustaining outstanding results over time is to create a positive work culture in which teams of people (at all levels) are meaningfully engaged in their work, understand the business, and are empowered with full responsibility for their success. The purpose of implementing high performance is to create the conditions in which this can occur.

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